Despite the rain on the afternoon of Aug. 28, the streets of Myeongdong in Seoul were bustling with foreign tourists. However, groups of Chinese tourists were noticeably absent. Volunteers stationed around the area were busier assisting in English and Japanese than in Chinese.
China recently allowed group tourism to South Korea for the first time in six years and five months after the THAAD missile defense dispute. There were high expectations for the return of Chinese tourists, but the reality on the ground seems different. Myeongdong merchants, who had prepared to welcome Chinese group tourists, couldn’t hide their disappointment.
According to the Korea Tourism Organization, the number of Chinese tourists visiting Korea in the first half of this year was 540,000, an increase from last year’s 70,000 but still an approximately 80% decrease compared to the pre-COVID-19 numbers in 2019, which stood at 2.8 million.
Analysts suggest that this reduction is due to the debt default crisis of the Chinese real estate company Evergrande, leading to a slowdown in China’s economy and dampening consumer sentiment. Professor Seo Ji-yong from Sangmyung University’s Business School noted, “Due to the real estate-driven economic slowdown in China, Chinese consumers’ spending power has decreased, making them more cautious about traveling abroad. Moreover, the rise in prices in South Korea for cosmetics, clothing, and other domestic products has diminished their cost advantage, resulting in Chinese tourists selectively buying only necessary products.”
A Chinese woman visiting Myeongdong mentioned, “The job market in China is currently very challenging. Many of my friends are focusing on studying or job preparation during their holidays instead of traveling abroad.” As of June, China’s youth unemployment rate for those aged 16-24 reached a record 21.3%. A survey conducted by Dragon Trail Interactive in April showed that 58% of Chinese respondents either had no plans or were uncertain about traveling abroad this year.
However, the tourism industry is optimistic about the upcoming “Golden Week” from September 29th to October 6th, which combines China’s largest holidays, the Mid-Autumn Festival and National Day. An industry insider commented, “It hasn’t been long since the group travel restrictions were lifted. We’re in the initial phase of Chinese tourists returning. We expect a significant influx of group tourists starting next month during Golden Week.”