The number of annual foreign tourists to Korea is projected to surpass 20 million for the first time this year, helping to invigorate the country’s sluggish domestic consumption, according to a report from the Hyundai Research Institute on Thursday.
According to the report, the total number of foreign tourists reached 5.58 million in the first four months of this year, which is a 14.6 percent increase from the same period last year.
Chinese visitors accounted for the largest share in terms of nationality at 28.1 percent, followed by Japanese at 18.7 percent.
The report forecast that the total figure is on pace to hit a record-setting 20.09 million at the end of the year.
Based on an analysis of major countries’ gross domestic products, exchange rates and the average spending of a foreign visitor, the report projects that Korea will generate $20.25 billion in tourism revenue this year, equivalent to about 2.5 percent of the country’s total domestic spending last year.
Spending by foreign tourists has been growing alongside a rise in overseas visitors to Korea. Foreign tourism revenue increased by 9.2 percent on-year to log $16.45 billion last year. The figure reached $5.62 billion in the January-to-April period this year, up 18.6 percent on-year.
The report pointed out that Korea’s domestic spending is forecast to increase by 2.5 percentage points due to the rise in spending by foreign visitors, adding that it is expected to significantly contribute to the overall domestic economy when considering both the direct and indirect effects amid stagnating domestic spending by Koreans.
Underscoring the importance of expanding tourism revenue and attracting more foreign tourists, the report suggested strengthening Korea’s brand marketing by utilizing Korean cultural content, improving the convenience of payments for visitors, investing in local tourism infrastructure by enhancing accessibility, supporting startups in tourism and expanding job opportunities in tourism for the underprivileged.