Foreign Influx to Replace Domestic Outflow... Jeju Hotels Anticipate Positive Turnaround in Atmosphere

Casino Synergy, Grand Hyatt Foreigners 52%
Jeju-si Business Hotels Recover to Pre-COVID Levels
Expectations Rise with Expansion of Overseas Direct Flights in Second Half

After the endemic phase (periodic outbreaks of infectious diseases), Jeju hotels, which had struggled with declining occupancy rates among domestic travelers heading overseas, are growing optimistic about the expansion of foreign visitors. Foreign guest proportions are increasing not only in casinos targeting foreigners, which had a hard time during the COVID-19 pandemic, but also in business hotels in Jeju City and luxury hotels in Jungmun.

Jeju Dream Tower Complex Resort View
[Photo by Lotte Tour Development].

According to the hotel industry on the 23rd, this change in atmosphere is most evident in city hotels accompanied by facilities such as casinos that foreigners can enjoy. Lotte Tour Development reported that the Grand Hyatt Jeju, located within the Jeju Dream Tower complex resort in Jeju City, recorded 36,290 room nights in June (based on reservations after the 20th), surpassing 30,000 room nights for the first time since its opening. The increase in foreign guests had a significant impact. In May last year, foreign guests accounted for about 12% of the total guests at the Grand Hyatt Jeju, but after the direct flight route to China fully opened in March, this surged to 32%, then 49% last month, and 52% as of the 19th of this month.

Lotte Tour Development stated, "With the expansion of international direct flights, an additional 400 to 500 room reservations are being made daily," adding, "By the end of June, we expect to set a record of around 34,000 room nights." The surge in foreign visitors has also signaled improvements in casino and shopping mall performance. The Dream Tower casino exceeded 20,000 monthly visitors for the first time last month, reaching 21,866 visitors. Net sales (11.4 billion KRW) also hit a record high, continuing a two-month streak of profitability.

Business hotels are also showing a clear trend of increasing foreign guests. Lotte City Hotel in Jeju City saw the average monthly proportion of foreign guests from March to May increase about threefold compared to January and February. Since March, the proportion of foreign guests has been rising steadily, now recovering to levels similar to those before COVID-19 in 2019. Similarly, Shilla Stay Jeju, also located in Jeju City, experienced more than a threefold increase in foreign guests in the second quarter compared to the first quarter. Maison Glad Jeju in Jeju City saw a 10-20% increase in foreign guests compared to the beginning of the year.

Even luxury hotels in Jungmun, where domestic family customers dominate, are experiencing a turning point. Jeju Shilla Hotel in Seogwipo City reported that the proportion of foreign guests in the second quarter increased about fourfold compared to the first quarter. Lotte Hotel Jeju also saw the average monthly proportion of foreign guests in May and June rise about four times compared to the first quarter, compensating for the decline in domestic guests.

A 7-meter-tall 'Hallabong Belly Bear' sculpture is installed at Lotte Hotel Jeju.
[Photo by Lotte Hotel].

Hotels are expanding their target customers not only to the increasing number of foreign tourists but also to domestic customers enjoying summer vacation, enhancing the content available within the hotels. Lotte Hotel Jeju installed photo spots inside the hotel, including a 7-meter-tall 'Hallabong Belly Bear' sculpture and a 'Haenyeo Belly Bear,' and newly created an outdoor garden walking path. Jeju Dream Tower complex resort introduced a table ordering system in 14 food and beverage outlets that supports four languages: Korean, English, Chinese (Simplified and Traditional), and Japanese, and extended the operating hours of the K-Fashion Mall Han Collection until 11 p.m.

The hotel industry expects a gradual turnaround in the second half of the year due to the expansion of overseas direct flights and the influx of Chinese group tourists. According to Korea Airports Corporation, the number of international flights departing from Jeju will reach 127 per week on the 25th, nearly doubling from 71 per week as of the 13th. KB Securities researcher Lee Seonhwa said, "Direct flights between Shanghai and Jeju began operating on March 26, and recently, flights to major Chinese cities such as Beijing, Ningbo, and Hangzhou have been added, improving traffic. From the second half of the year, a full recovery of Chinese VIP tourists is expected." She added, "As of last month, the number of Chinese flights at Jeju Airport has recovered to 38.7% of pre-COVID-19 levels, which is lower compared to Gimpo Airport at 85.5% and Incheon Airport at 58.5%, so the recovery potential is relatively high."

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