Chinese Tourists Boosting Foreign Visits to Korean Duty-Free Shops During Golden Holidays in May

The number of foreigners visiting domestic duty-free shops in March more than doubled from a year ago, but sales lagged because of China’s economic slowdown and the slow recovery of group tourists.

In addition, as the burden of duty-free shopping for Koreans increases due to the strong dollar, the duty-free industry has prepared a wealth of incentives for foreigners to attract Chinese and Japanese tourists. attraction, which is expected to visit Korea in large numbers for. the golden holidays in May.

According to the Korea Duty Free Shop Association on the 2nd, the number of foreigners who visited domestic duty-free shops in March was 740,000, which is about 2.4 times more than the same month last year (310,000). However, foreign sales at duty-free shops decreased by 9.0% from KRW 1.0257 trillion to KRW 932.6 billion during this period.

The number of foreigners visiting Korea has been increasing since the COVID-19 pandemic, but due to the normalization of passenger taxes, Daigong (Chinese package merchants) sales have decreased, and The recovery of group tourism is still slow due to China’s economic downturn.

Lotte Duty Free, which held a ‘family concert’ last June due to the slow flow of group tourists, has not yet set a schedule for this year.

This concert is an event that Lotte Duty Free has been holding since 2006 to attract tourists.

Park Sang-jun, a researcher at Kiwoom Securities, analyzed, “As the purchasing power of the Chinese people has weakened compared to the past, retail sales and profits are falling below expectations . “

However, with the decline in the value of the won due to a sharp rise in the exchange rate, the number of Chinese and Japanese tourists visiting Korea during the ‘Golden Holiday’ is expected to increase in May, and the focus is on whether it will be ‘sweet water’ for the duty free market.

In May, there is China’s Labor Day (1st to 5th) and Japan’s Golden Week (April 27th to May 6th). According to the Ministry of Culture, Sports and Tourism, the number of Chinese and Japanese tourists visiting Korea from April 27 to May 6 is expected to reach 100,000 and 80,000, respectively.

Duty-free stores have prepared various promotions to attract foreign tourists.

Lotte Duty Free Shop is holding an event where it will give away up to 1.18 million won in shopping subsidies depending on the purchase amount. Especially for Festa Korea Duty Free, discount coupons of up to $180 will be given out, and free gifts such as mask packs will also be given out at stores.

Shilla Hotel (008770) Shilla Duty Free Seoul branch has joined forces with Japan Airlines (JAL) to offer 1 mile per dollar spent to JMB members who have no purchase history for more than one year. Benefits have been enhanced from the existing 2 miles for every $3 purchase. Chinese tourists will receive $8 worth of points when they sign up for a new membership at the Incheon branch.

Shinsegae (004170) is offering discounts of up to 220,000 won, and Hyundai Department Store (069960) has organized a giveaway event that will give away Inspire Resort accommodation vouchers or facility usage vouchers to domestic and foreign who buy more. than $1.

(Seoul = News 1)