Foreign Tourist Urban Homestays, a new form of accommodation, are gaining attention as a way to accommodate the rapidly increasing number of foreign tourists. With the number of inbound visitors to Korea expected to reach an all-time high this year, the number of such homestays in Seoul, where foreign tourists are most concentrated, has nearly doubled over the past year.

According to the Seoul Metropolitan Government on October 13, the number of registered Foreign Tourist Urban Homestays in Seoul reached 4,001 as of the first half of this year, nearly double the 2,167 registered in the first half of last year. The number of these homestays, which stood at around 1,100 in 2022, has seen rapid growth since 2023, when inbound tourism began to recover in earnest.

Tourists pulling their suitcases at the airport bus stop. Photo by Asia Economy Database

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The surge in foreign tourists visiting Seoul over the past year has been further fueled by the global popularity of K-content such as "Maybe Happy Ending" and "K-Pop Demon Hunters." Foreign Tourist Urban Homestays are accommodations in which residents of urban areas open their homes (with a total floor area of less than 230 square meters) to provide lodging and Korean cultural experiences to foreign tourists.

An official from the Ministry of Culture, Sports and Tourism explained, "With the K-content boom leading to a significant increase in foreign tourists, more people are viewing Foreign Tourist Urban Homestays as an attractive investment opportunity. By utilizing unused spaces such as empty rooms, additional value can be created."

According to the Korea Tourism Organization, the number of inbound foreign tourists from January to August this year reached 12,379,498, averaging about 1.55 million per month. If this trend continues, the total number of foreign tourists this year is expected to easily surpass the previous record of 17,502,756 set in 2019.

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The mandatory business registration policy implemented by the accommodation-sharing platform Airbnb is also cited as a major factor behind the surge in Foreign Tourist Urban Homestay registrations. Since last year, Airbnb has required newly registered accommodations to submit a business registration certificate, and starting October 16, this rule will apply to existing listings as well. If hosts do not submit the certificate by the deadline, they will not be able to accept bookings through Airbnb starting January 1 next year. Airbnb has stated that this policy aims to address safety and hygiene issues at unregistered accommodations and to establish a healthy culture of shared lodging.

With Airbnb’s policy in effect, Foreign Tourist Urban Homestays that previously operated without business registration are gradually becoming legalized. The number of registered homestays is expected to continue rising for the time being. As the government has designated tourism as a key strategic industry and is aiming to attract 30 million inbound tourists by 2030, Foreign Tourist Urban Homestays are being highlighted as an alternative to improve Korea’s capacity to accommodate foreign visitors.

Tourists and citizens are passing through Myeongdong Street in Jung-gu, Seoul. Photo by Yonhap News Agency

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In response to the recent surge in inbound tourism demand, the government has decided to allow homes that are over 30 years old to be registered as Foreign Tourist Urban Homestays, provided they are deemed safe. Previously, homes more than 30 years old after occupancy approval were classified as "old or substandard buildings" and were restricted from registration, but the government has eased these regulations by removing related administrative guidelines.

An official from the Ministry of Culture, Sports and Tourism stated, "As part of regulatory rationalization, buildings over 30 years old can now be registered as Foreign Tourist Urban Homestays if safety is ensured. With the growing number of individual travelers (FIT) who value local experiences over group tours, these homestays will play a positive role by offering a variety of lodging experiences that hotels cannot easily provide."