As per newly released data by Future Market Insights (FMI), the South Korea tourism market is estimated at USD 35.8 million in 2023 and is projected to reach USD 77.9 million by 2033, at a CAGR of 8.10% from 2023 to 2033.
In Korea, tourism is a key factor in economic expansion. Opportunities in the Korea tourism market are still plentiful. More diverse travel experiences and social media optimization are on the rise as growth trends.
With Hong Kong, Taiwan, and Singapore, South Korea was one of the ‘Four Dragons of Asia’ and had tremendous growth starting in the 1970s. An increase in tourism has accompanied this economic boom.
It constantly ranks among the most popular and in-demand travel destinations on the planet. A cultural phenomenon known as 'Hallyu,' or the 'Korean wave,' is what drives the demand for South Korea tourism.
| Attribute | Details |
|---|---|
| South Korea Tourism Market Estimated Size (2023) | USD 35.8 million |
| South Korea Tourism Market Projected Size (2033) | USD 77.9 million |
| South Korea Tourism Industry Value-based CAGR (2023 to 2033) | 8.10% |
The fashion was originally seen in TV dramas and stage performances by K-Pop performers, and it afterward made an appearance in the technology, food, and cosmetics industries.
The resurgence of the tourism industry is primarily being supported by the entertainment industry. The Korean Hallyu, as was already said, is a significant contributor to the South Korea tourism industry.
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The younger generation in South Korea is likely to research vacation possibilities using online social media platforms and sources. Due to more lenient international travel laws and visa restrictions, the South Korea tourism industry size is expected to expand during the forecast period.
Moreover, with rising interest in seeing new places, enhanced air connectivity, rising earnings, and government programs that have given South Koreans more free time, travelers from South Korea increasingly prefer to travel overseas.
Several South Korea's tourists come from neighboring countries, including Hong Kong, Japan, China, and Taiwan. The primary source of tourism in South Korea is the so-called ‘Korean Wave.’
Furthermore, in the late 1990s, Korean pop culture experienced a dramatic rise in popularity worldwide. Korea's dramas, TV shows, and pop music evolved from being a regional fad to a global phenomenon.
This was especially noticeable in the neighboring nations, and it even prompted the Korean government to promote the demand for South Korea tourism by providing subsidies or startup capital.
The declared goal is to displace the United States from the top spot it has held for nearly a century by making the nation a leading exporter of culture alongside British and Japanese culture.
Expanding Entertainment Industry
Korea's culture, music, and films have been known as Hallyu, to which K-pop and K-drama have been added. Travelers' increasing preference for working abroad due to more flexible international travel requirements and visas, travelers' growing interest in discovering new places, improved air connectivity, and rising incomes.
Government Initiatives
Government initiatives that have given South Koreans more free time all contributed to South Korea's rapid growth in outbound tourism. Famous spots for food and drink influence South Korean respondents' decision-making when selecting a holiday spot.
Due to a few factors, it can be difficult to promote South Korea's tourism market, which has tremendous potential, to the rest of the world. Political tensions spurred on by unsolved problems with neighbors like North Korea, China, and Japan have made this region a potential hot spot that could suddenly erupt.
It is expected to be highly rare for tourists from outside of East Asia to travel to South Korea amid unrest, as safety and security are of the utmost priority. Even countries that the government disagrees with politically may face restrictions on travel to and from their territory. This can be especially challenging, as several tourists are locals.
South Korea is one of the most attractive countries, and it is likely to continue to draw more tourists over the projection period owing to its picturesque beaches, islands, lovely seasons, culture, food, and many other features.
| City/Islands | Details |
|---|---|
| Jeju Island |
|
| Busan |
|
South Korea is renowned throughout the world for its dynamic music scene. K-pop is not just a style of music. It is also an element of Korean culture that has captivated audiences throughout Asia and the rest of the world. Numerous skincare and cosmetics companies with the most cutting-edge and futuristic items on the market can be found in South Korea.
Domestic Tourism is the Most Prominent Tourist Type in South Korea tourism
| Segment | Domestic |
|---|---|
| Market Value % (2022) | 63.7% |
A lot of the profit made by the South Korea tourism business comes from domestic travel. Due to the nation's extensive train and bus network, a large part of the country can be reached in one day or less from any leading city.
In Korea, domestic tourists are increasing. The amount of people that travel within the country, including on day excursions, is encouraging the demand for South Korea Tourism.
South Korea tourism is continuing to be quite popular among people aged 35 to 49
Due to their propensity for attraction, readiness for travel, and desire to explore, people in the 35 to 49 age range make up the majority of South Koreans who go on vacation.
People in the South Korea Tourism Market Usually prefer package travel.
The main reason tourists opt for packaged travel is the cost savings compared to booking individual flights. The lodging, transportation, and site entrance fees are all included in package travel, with significant savings and promotions.
Online Booking is More Preferred by Tourists
| Segment | Online Booking |
|---|---|
| Value Share % (2022) | 41.8% |
Tourists prefer to book online or use a mobile application platform. This is to offer hassle-free digital payment transfer, enhanced security, and live tracking. Furthermore, the number of Korean customers purchasing trips on their mobile devices keeps growing and is increasingly common.
Online booking is becoming an increasingly widespread approach worldwide. Travelers use the internet to search, compare, and analyze information regarding vacation spots, accommodations, restaurants, and more.
Start-ups are encroaching on the South Korea tourism market due to the abundance of lucrative opportunities there. Digitalization and technological development support the South Korea tourism market.
Some Recent Start-ups Contributing to the South Korea Tourism Industry Share Are
Waug.com
The South Korea internet travel agency Waug.com offers a variety of trips and activities. The platform allows users to search, look up availability, compare costs, and book trips and activities. Extreme sports, trips to theme parks and museums, and other activities are all covered online with platform payments available.
EXTRIBER
A platform for booking vacation packages is offered by Extriber. Provides ‘TripStore,’ an app-based marketplace that enables customers to browse, assess, and reserve travel arrangements from a variety of affiliated travel agents and tour operators. The trip packages can be picked out based on their budget, places, and length of stay and grouped based on themes and preferences.
Tripstore
Users may find, evaluate, and reserve vacation packages from a variety of partner travel agencies and tour operators using the app-based Tripstore platform.
South Korea tourism market players seek strategic alliances and partnerships with other tour operators or travel agencies to broaden their service offerings and draw more tourists.
Recent Developments
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Region Covered | East Asia |
| Key Countries Covered | South Korea |
| Key Segments Covered |
Tourism Type, Booking Channels, Tourist Type, Tour Type, Consumer Orientation, Age Group |
| Key Companies Profiled |
G Adventures; The Dragon Trip; Intrepid Travel; On-the-go Tours; MW Tours; Exodus Travels; Madventure; Travel Marvel; TNT Korea Travel; Korea Private Tours; Uri Tours; Thomas Cook; Koryo Tours |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The growth potential of this market is 8.10% through 2033
South Korea tourism remains favored by ages 35-49.
Unresolved issues with North Korea, China, and Japan makes potential volatile hotspot and limits growth.
Packaged travel is preferred in the South Korea tourism industry.
South Korea's tourism industry is set to grow with relaxed travel laws and visa rules.
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South Korea Tourism Market
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