Mass Influx of Chinese Tourists Boosts Retail Sales

Published on 2012/10/07 | Source

Shoppers crowd into a department store in Seoul on Wednesday. /Newsis

Huge numbers of Chinese tourists have been arriving in Korea as China's biggest long holiday began on Sept. 29.

The Korea Tourism Organization predicts a record 100,000 Chinese tourists will visit Korea during the nine-day holiday. Many who would be otherwise going to Japan for their holidays are instead coming to Korea due to conflict over the Senkaku or Diaoyu islands.

They are expected top spend some W200 billion (US$1=W1,114) here.

On Oct. 1, Lotte Duty Free saw sales soar 2.8 times at its Jamsil branch and 3.2 times at the COEX branch compared to the usual average.

The fact that duty-free stores in the Gangnam area, not just in commonly frequented Myeong-dong, are seeing sales rise, reflects growth in the number of Chinese tourists visiting Korea regularly. Most first-time visitors to Korea tend to stay in north of the Han River, where famous tourist sites such as Mt. Nam and Gyeongbok Palace are located. Those who have been to Korea several times tend to spend their time in Gangnam, south of the river, shopping.

Tourism industry insiders say Chinese tourists who come for two or three days tend to stay near tourist spots such as Namdaemun Market, Gyeongbok Palace, Cheonggye Stream, Dongdaemun Market, and the 63 Building, and mostly shop in Myeong-dong. But those who come for more than four days turn to organized tours to Jeju Island or TV series-themed tours, and shop in Gangnam.

Medical tourism is also getting popular. Dermatologists in Gangnam are attracting more and more Chinese customers who come on a regular basis.

Thanks to the influence of the Korean Wave, products made in Korea are increasingly popular among young travelers. Lotte Department Store said domestic brands have ranked high in the list of top sellers since last year.

Up until 2009, imported luxury brands made up over 60 percent of purchases by Chinese tourists, but Korean casual brands are catching up.