Chinese Tourists Flock to Japan, Shunning South Korea Amid Weakened Yen

South Korea's tourism industry faces a significant setback as Chinese tourists, once a vital source of revenue, increasingly choose Japan and other visa-free destinations for their Labour Day holiday travels. Travel agents report a notable shift in preferences, with Chinese holidaymakers favoring countries like Japan, where a weakened yen has made it an attractive option for shopping and leisure activities.

Why this matters: This shift in tourist preferences has significant implications for South Korea's economy, which struggles to recover from the pandemic. The decline in Chinese tourists also highlights the importance of economic factors and ease of access in shaping global tourism patterns, with potential consequences for other countries competing for the lucrative Chinese tourist market. The decline in Chinese tourists also highlights the importance of economic factors and ease of access in shaping global tourism patterns, with potential consequences for other countries competing for the lucrative Chinese tourist market.

The impact is evident in the numbers. Travel agencies reveal that the number of Chinese people applying for South Korean visas ahead of the Labour Day holiday has plummeted by at least a third compared to 2019 levels. In contrast, the number of clients seeking Japanese visas has surged by at least 20% versus five years ago. Wang Xin, a travel agent with Beijing Tianping International Travel, states, "This year, many Chinese went to Japan instead, thanks to the low exchange rate."

In 2024, international tourist arrivals in South Korea have recovered to 63% of pre-pandemic levels, with around 11 million visitors, compared to 17.5 million in 2019. However, the number of Chinese visitors, who once contributed significantly to South Korea's tourism sector, remains at about a third of 2019's total. In March 2024, 391,347 Chinese visitors traveled to South Korea, compared to over 400,000 per month in 2019.

Experts attribute this shift to several factors, including the weakened yen, which has made Japan a more appealing shopping destination, and the ease of travel to visa-free countries such as Thailand, Malaysia, Singapore, Georgia, and Egypt. Zhou Mingqi, founder of China-based tourism consultancy Jingjian Consulting, explains, "If many travelers choose Korea primarily for shopping, and with Japan offering more favorable exchange rates, it's logical that this portion of travelers would shift towards Japan."

The decline in Chinese tourists presents significant challenges for South Korea's tourism sector, which is still recovering from the pandemic. The spending power of Chinese visitors, once a major driver of the country's tourism economy, is now being redirected to other destinations. Zhang Huizhi, professor of Northeast Asian studies at Jilin University in China, notes, "Chinese travelers now have more options for their outbound trips. In situations where Korea's relationship with China is not friendly, Chinese tourists can choose to visit other countries."

As South Korea confronts this shift in tourist preferences, it becomes clear that the country's tourism industry must adapt to remain competitive in the face of changing global travel dynamics. The requirement for visa applications and procedures has become a disadvantage for South Korea, as Chinese tourists increasingly prioritize convenience and cost-effectiveness when choosing their holiday destinations.

The impact of this trend extends beyond South Korea's borders, highlighting the importance of economic factors and ease of access in shaping global tourism patterns. As countries compete for the lucrative Chinese tourist market, those that offer a combination of attractive exchange rates, visa-free entry, and compelling experiences are likely to gain a competitive edge.

South Korea faces a challenging environment as it confronts the decline in Chinese tourist numbers. The country must find innovative ways to attract and retain Chinese visitors while also diversifying its tourism offerings to appeal to a broader range of international travelers. By addressing the factors that have led to the current decline, South Korea can work towards rebuilding its tourism sector and securing a more resilient future for this vital part of its economy.

Key Takeaways

• Chinese tourists favor Japan and visa-free destinations over South Korea for Labour Day travels.
• South Korea's tourism industry faces a significant setback, with Chinese visitors down by a third.
• Weakened yen and ease of travel to visa-free countries drive Chinese tourists to Japan and other destinations.
• South Korea's tourism sector must adapt to remain competitive in the face of changing global travel dynamics.
• Economic factors and ease of access shape global tourism patterns, with implications for countries competing for Chinese tourists.