2 Million Chinese Tourists Expected... Employment Impact Up to 80,000 Jobs

Ministry of Employment Holds Joint Job Task Force Meeting with Related Ministries
Chinese Tourists Increase from 25,000 in January to 264,000 in September
Employment Induction Effect Expected to Approach 66,000 to 79,000
"Promoting Attraction Strategies Including Customized Tourism Talent Development"

The number of Chinese tourists visiting Korea this year is expected to reach 2 million. The employment inducement effect resulting from the influx of Chinese tourists is analyzed to approach a maximum of 80,000 jobs. The government plans to prepare additional support measures to ensure that the increase in tourists leads to economic revitalization and job creation.

On the 21st, the government announced this at the 11th joint task force (TF) meeting on jobs held at the Seoul Regional Employment and Labor Office, chaired by Lee Seong-hee, Vice Minister of the Ministry of Employment and Labor. The meeting discussed recent employment trends, characteristics of job indicators, employment issues, and reviewed the execution status of direct job projects.

According to data released that day by the Korea Culture and Tourism Institute, 264,000 Chinese tourists visited Korea in September. Although this is still about half the level of September 2019 before COVID-19, it represents a significant increase compared to 25,000 in January this year. The cumulative number of tourists currently stands at 1,295,000, and if the current trend continues, the annual figure is expected to reach 2 million.

As expected, the employment inducement effect from Chinese inbound tourism was estimated to be between approximately 66,000 and 79,000 jobs. The employment inducement effect is an indicator estimating the labor required due to increased spending. The largest effects were seen in face-to-face service industries such as wholesale and retail trade (32,000 jobs) and accommodation and food services (24,000 jobs).

However, it is expected to take more time for the effects of the influx of Chinese tourists to fully materialize. First, the recovery of group tours, which accounted for a significant portion of Chinese tourists, is slow. This is due to the recent preference for individual travel. Group tours resumed in August after six and a half years, but as of September, only about 13,000 people participated. Despite Korea's rising prices, the desire for travel prices similar to those before the 2016 THAAD restrictions remains a factor hindering recovery.

The government plans to actively promote strategies to attract Chinese tourists next year as the increase in inbound Chinese tourists positively impacts the employment sector. Efforts will continue to nurture customized tourism talent, establish a foundation for tourism workforce development, and hold tourism industry job fairs to activate connections between job seekers and employers in the tourism industry.

The meeting also included an analysis of employment status by age group for the elderly. The employment rate for those aged 60 and over increased from 36.2% in 2010 to 45.6% from January to October this year. Compared to the previous year, the number of employed increased by 382,000, and the employment rate rose by 1.1 percentage points. The health and welfare sector saw an increase of 81,000, mainly among those aged 70 and over and women, while manufacturing increased by 57,000, centered on those in their early 60s and men. Wholesale and retail trade also increased by 39,000, showing a balanced increase across industries.

By employment status, permanent employees increased the most by 213,000. Temporary workers increased by 94,000 in public, health and welfare, and business facility sectors, and self-employed workers increased by 89,000. Elderly workers working more than 36 hours increased by 369,000, mainly in manufacturing and wholesale and retail sectors. By occupation, professionals numbered 93,000, the highest, followed by service workers (74,000) and clerical workers (43,000). The contribution of the private sector to elderly employment expanded from 78.8% in 2017 to 88.6% this year.

Despite favorable employment indicators, resolving the issue of vacant jobs and the problem of 'resting' youth remain challenges. Vice Minister Lee said, “Although quantitative and qualitative improvements in employment continue, many issues still need to be addressed,” adding, “Major industrial sites still face difficulties in finding workers.” Regarding the 'resting' youth, he stated, “We recently announced measures to promote youth labor market entry and plan to actively implement them.”

Vice Minister Lee continued, “Since the Korean Confederation of Trade Unions recently decided to return to social dialogue, the government will work together with labor and management to devise reasonable solutions to current issues,” emphasizing, “We will focus policy capabilities to enhance private sector job creation capacity.”