"Foreign Tourists Flock In"... Hotel Industry Smiles at King Dollar

Foreign Guest Stay Rates at Hotels Near Myeongdong Rise Across the Board
Among Visitors to Korea, Americans Are the Most Numerous Due to High Exchange Rates

[Asia Economy Reporter Jeon Jinyoung] As COVID-19 transitions into an endemic phase and restrictions on foreign tourists are lifted, the hotel industry, which had been stagnant, is showing signs of revival. Additionally, the so-called ‘King Dollar’ high exchange rate, which has lowered the value of the Korean won, is positively influencing the attraction of foreign tourists.

According to industry sources on the 13th, hotels near Myeongdong have all shown a significant increase in the proportion of foreign guests compared to the COVID-19 outbreak period. For example, at Lotte Hotel Seoul, the proportion of foreign guests reached 60% last month, a sharp rise from 20% in September last year. Similarly, Lotte Hotel’s L7 Myeongdong, popular among foreign visitors, saw its foreign guest ratio jump sixfold from 10% last year to 60% in August and September this year. The Four Points by Sheraton Myeongdong, part of the Chosun Hotel & Resort group, also experienced a fivefold increase in foreign guest ratio, from 10% in September last year to 55% in September this year.

Venues that heavily rely on hosting foreign events such as banquets and academic conferences have also seen positive trends. Representatives from InterContinental Seoul COEX and COEX stated, "There continue to be events with foreign visitors in the banquet halls, resulting in full occupancy on weekends for several weeks. Weekday occupancy rates also exceed 80-90%. We expect even more foreign guests after October, when academic conferences and year-end events increase."

According to the Korea Tourism Organization’s statistics, the number of tourists visiting Korea in August reached 310,945, a 143% increase compared to April (127,919). Notably, the number of American tourists, who are directly affected by the high exchange rate, stood out. From January to August this year, Americans accounted for the largest share of foreign tourists entering Korea at 20.3%.

Hotels are making internal changes to welcome foreign tourists, such as providing information not only in Korean but also in English and Japanese. However, Jeju’s luxury hotels, which had targeted Chinese tourists, have not yet felt the positive effects due to ongoing restrictions on Chinese visitors. Therefore, the overall industry outlook suggests that Chinese tourism will remain a key variable going forward.

A representative from a luxury hotel in Jeju said, "Currently, Jeju seems to rely more on domestic tourists than overseas visitors, and there has been no significant change in the influx of foreign tourists. We are still focusing on capturing domestic demand through events like autumn golf tournaments."

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