Changes in 'Jeju Tourism' After the COVID-19 Crisis

Group tours to China and others disappear, individual tourism becomes the trend

Luxury hotels and rental cars recover sales to last year's level

Jeju Island Seongsan Ilchulbong Night View

[Asia Economy Honam Reporting Headquarters Reporter Park Chang-won] The Jeju tourism market, which once hit its lowest point due to COVID-19, has turned upward since May and has recovered to last year's level.

In particular, while sales of luxury hotels and rental cars have turned to an upward trend, sales of charter buses and travel agencies have sharply declined, showing that COVID-19 has completely changed the nature of Jeju tourism.

Jeju Special Self-Governing Province and Jeju Tourism Organization (President Park Hong-bae) announced on the 10th the results of the "Analysis of the Impact of COVID-19 on Jeju Tourism Consumption in the First Half of 2020," based on an analysis of credit card sales data.

The consumption impact analysis showed that total consumption in the Jeju area recorded its lowest point in April at -24% compared to the same period last year after the outbreak of COVID-19 in January.

It is estimated that during the time when Shincheonji confirmed cases and Jeju confirmed cases occurred, consumption decreased by 18.9 billion KRW per week in the first phase, and during the implementation of social distancing, consumption decreased by 13.8 billion KRW per week in the second phase, totaling an estimated consumption decrease of about 55.3 billion KRW.

However, consumption surged once during the golden holiday period in early May and has continued to increase since the use of disaster relief funds.

In June, the consumption growth rate compared to the same period last year recovered to about -9%, rising 15 percentage points from the lowest point of -24% in April.

Tourist consumption fell to -46% compared to the same period last year in April but turned upward from May and recovered to -16% in June.

Domestic tourist consumption decreased by up to -39% in April compared to the same period last year but recovered to -5% in June.

Foreign tourists recorded -90% in April compared to the same period last year due to the suspension of the visa-free system and global overseas travel restrictions, and did not recover, remaining at -81% in June compared to the same period last year.

Resident consumption fell to -7% in March compared to the same period last year but turned upward from April and recovered to -3% in June.

By region, consumption by residents in Jeju City fell relatively more than in Seogwipo City but recovered faster.

Consumption by Jeju City residents fell to -8% in March but turned upward and recovered to about -3% in June. Seogwipo City residents fell to -5% in March and recovered to about -3% in June.

Meanwhile, the tourism industry showed contrasting results by sector.

Luxury hotel sales fell by about -50% compared to the same period last year in February but recovered to last year's level from May.

Rental cars also fell by about -50% compared to the same period last year in February but turned to a recovery trend and recovered to -12% in June.

On the other hand, charter buses fell to -100% compared to the same period last year in March and April and remained at about -64% in June.

Travel agencies started with sales of +120% compared to the same period last year in January before the COVID-19 outbreak but have not escaped a decrease of more than -50% until June after the outbreak.

A Jeju Tourism Organization official said, "The recovery in sales of luxury hotels and rental cars and the sharp decline in sales of charter buses and travel agencies clearly show the structural change in Jeju tourism from group tours to individual tours due to the impact of COVID-19," adding, "We will continue to monitor the damage caused by COVID-19 through continuous big data analysis and various surveys and respond by establishing scientific support and marketing plans based on this."

This content was produced with the assistance of AI translation services.