2025.05 2025 Q1 Korea Inbound & Outbound Tourism Performance
YANOLJA RESEARCH BRIEF 2025 Q1 Korea Inbound & Outbound Tourism Performance · In the first quarter of 2025, the number of foreign tourists visiting Korea totaled 3,870,247, marking a 13.7% increase year-on-year and a 0.7% rise compared to the same period in 2019, pre-COVID-19. This is the highest Q1 figure on record, indicating that inbound demand has fully recovered in quantitative terms.
· However, unlike the increase in visitor numbers, tourism revenue remains stagnant. In Q1 2025, tourism revenue reached USD 3.78 billion, representing a 13.7% increase from the previous year, but still 23.8% lower than the same period in 2019. Moreover, average spending per visitor fell by 24.4%, from approximately USD 1,290 in Q1 2019 to USD 976. This disparity clearly highlights that a mere quantitative rebound is insufficient to improve profitability in Korea’s tourism sector.
· By region, visitors from Asia overwhelmingly dominate, accounting for 81.0% (approximately 3.14 million people) of total inbound tourists. This underscores Korea’s continued heavy reliance on geographically proximate markets. However, Asian arrivals are still only at 98.1% of 2019 levels, indicating an incomplete recovery.
· A key factor behind this lag is the delayed recovery of the Chinese market. In Q1 2025, 1.334 million Chinese tourists visited Korea, about 84% of the Q1 2019 figure (over 1.6 million). This appears to result from a mix of political and economic factors as well as changing consumer trends both within and outside China.
· Japan stands out as a leading case of inbound tourism recovery. Japanese visitors to Korea in Q1 2025 numbered around 1.12 million—98.5% of the pre-pandemic level (approx. 1.14 million). Notably, the increase is driven by individual rather than group travelers, indicating sustained popularity of Korean pop culture.
· Taiwan provides a hint toward structural transformation. Since 2023, Taiwanese tourist arrivals have surpassed those from the U.S., reaching 395,000 in Q1 2025—over 40% growth compared to 2019. Of these, more than 38% entered Korea through regional airports such as Gimhae, Jeju, and Daegu. This suggests that a diversified supply of flights operated by both national and foreign carriers contributed to demand expansion.
· One major reason for sluggish recovery in tourism revenue is the sharp rise in cruise tourists. As of Q1 2025, cruise passengers accounted for 7.4% of total inbound visitors, up significantly from 0.7% in 2019. Due to their short stays and limited spending on accommodation and food & beverage, their economic impact on local areas is relatively low.
· Another factor is the steep decline in duty-free sales. Sales to foreign visitors dropped from USD 4.09 billion in 2019 to USD 1.59 billion in 2025, a result of reduced spending—particularly by Chinese tourists—and shifts in their consumption patterns.
Inbound Tourism: Beyond Recovery in Num