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Travel and Tourism-ROK

Travel and Tourism

Republic of Korea

Overview

2004 2005 2006 (Jan. – Jun.)

Outbound Travel 8,825,585 10,080,143 5,431,308

Outbound Travel to the U.S. 627,575 665,181 339,238

Inbound Travel 4,184,992 4,347,318 2,058,919

Source: Korea Tourism Organization

Koreans’ rapidly rising GDP, their gradual increase in leisure time, heightened globalization, and greater awareness and interest in developments outside the Korean peninsula are spurring their interest in international travel. Korea's per capita GDP has risen to almost USD 16,291, placing it securely in the ranks of high-income countries. Korean consumer confidence also has increased along with a sharp rise in discretionary spending for such activities as overseas travel for both business and leisure. Korea also has begun to upgrade its domestic tourism sector infrastructure.

With these changing cultural and income factors, conditions look promising for more growth in the outbound Korean travel market. Koreans are showing an increased desire to travel to the United States despite the lengthy travel time and the airfares required to make the trip. The ever-present U.S. influence in Korean mass media, including movies, advertising, popular culture, and most recently the Internet, continue to accentuate Koreans' interest in U.S. travel destinations. Koreans overwhelmingly choose the U.S. as a non-Asian destination because of the diversity of tourism opportunities not easily available back home, including U.S.-style shopping, theme parks, cultural attractions in major U.S. cities, relatively inexpensive golfing experiences, and the major U.S. national parks.

In 2005, a record-breaking 10 million Koreans traveled abroad, an increase of 14.2% over 2004. According to the Korean Tourism Organization (KTO), 665,181 Koreans traveled to the U.S. in 2005, a 6% decrease over 2004, when 627,575 visited America. The number of Korean travelers to the U.S. has varied greatly over the past decade. Prior to the Asian Financial Crisis in 1997, 806,264 Koreans traveled to the U.S., then sharply decreased. Since then, the numbers slowly picked up back to 719,227 by 2000. However, the September 11, 2001, terrorist attacks caused the number of travelers to the U.S. to decrease. Only recently are the numbers beginning to gradually increase. Korea does not participate in the Visa Waiver Program. This has increased the competitiveness of other destinations that do not require visas, such as Japan and southeast Asian countries. Thailand is becoming a popular honeymoon destination. The stricter U.S. visa regime put in place following 9/11, which requires the U.S. Embassy to fingerprint and interview all applicants for U.S. visas, has dampened some interest in leisure travel to the United States.

As reported by the U.S. International Trade Administration, Korea is currently the fifth largest source for inbound travel to the United States, behind the United Kingdom, Japan, Germany, and France.

Best Prospects/Services Return to top

- High quality Group package tours to the U.S.

- Family / Leisure Trips

Opportunities

Korean Tourism Organization figures indicate that in 2005, a record 10 million Koreans traveled to other countries. Out of the top five favorite destinations for Koreans, China ranked number one, followed by Japan, the U.S., Thailand, and the Philippines.

With 6.5% of the Korean outbound tourism market, the United States ranked third in market share. China and Japan have a larger market share that is easily explained by their geographical proximity and language and cultural similarities to Korea. Koreans usually travel to the U.S. on package group tours or individually to visit their friends, families, and relatives. The market for group tours needs to be upgraded to provide a higher class of product that provides a variety of activities and caters to the more sophisticated tastes of seasoned Korean travelers. Koreans who travel to the U.S. are very much interested in visiting not only museums and amusement parks, but in looking for bargains at fashion outlets and visiting wineries. Following traditional travel patterns and because the U.S. is a country that offers a variety of activities, climates, and cultural experiences, the U.S. is by far the leading non-Asian destination for Koreas. Korean travel industry sources indicate that Los Angeles, San Francisco, Las Vegas, and Seattle are the most popular U.S. destinations, followed by the East Coast New York-Washington D.C route. Following United Airlines’ expansion of its routes to include direct service between Seoul and San Francisco in March 2006 and Korean Air’s inauguration of direct flights between Seoul and Las Vegas in September 2006, Delta Air Lines is inaugurating a direct link between Seoul and Atlanta in June 2007.

Resources

Major Show

Name: Korea World Travel Fair

http://www.kotfa.co.kr/eng/main/main.htm

Key Contacts

Korea Tourism Organization

http://english.tour2korea.com/07T2KZone/aboutUs/top_tour2korea.asp?konum=1&kosm=m7_7

Ministry of Culture and Tourism (MOCT)

http://www.mct.go.kr/english/index.jsp

Local Contact

Grace Sung

Commercial Specialist