Travel Balance Records 'Chronic Deficit'... Surge in Chinese Travel Demand

July Travel Balance Records $1.4 Billion Deficit
Worsening Expected Due to Increased Overseas Travel Demand

In July, the travel balance recorded a deficit of 1.4 billion dollars, with the scale gradually expanding, while demand for overseas travel to countries such as China and Japan continues to increase.

The photo is unrelated to the article content.
Photo by Kang Jin-hyung

According to the Bank of Korea on the 8th, the travel balance deficit in July was 1.43 billion dollars, double the amount from a year ago (840 million dollars). This is analyzed to be influenced by the surge in overseas travelers due to the easing of COVID-19 quarantine measures.

The travel balance has been in a perennial deficit, recording a deficit of 5.83 billion dollars in the first half of the year alone. Meanwhile, demand for overseas travel to countries such as China and Japan continues to rise, and the travel balance is expected to worsen further in the second half of the year.

According to the travel industry on the 8th, the number of Chinese package tour travelers in August has significantly increased among domestic comprehensive travel agencies. Mode Tour saw a 24% increase compared to the previous month and a 980% surge compared to the same month last year, while Chamjoeun Travel also increased 13 times compared to the previous month.

According to a travel industry official, with the recent resumption of tourist visa issuance to foreigners by the Chinese government, demand for destinations such as Baekdusan, Zhangjiajie, and Taishan, which were popular among middle-aged and older travelers before COVID-19, has revived.

In addition, demand for overseas travel to Japan, Southeast Asia, and other regions continues to increase. Especially with October 2nd designated as a temporary holiday, extending the Chuseok holiday, the reservation rate for overseas travel products is higher than during the summer peak season. Some popular products have even sold out.

The government designated the temporary holiday expecting to boost domestic consumption, but concerns are rising that the travel balance deficit may worsen as more people plan to travel abroad during the extended holiday period.

However, considering that China has fully allowed group overseas travel for its citizens for the first time in three years since COVID-19, there is also a possibility that the number of tourists visiting Korea will increase, partially improving the travel balance.

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