South Korean retail sales surged during Holidays
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The unprecedented extension of the Japanese Golden Week holiday to 10 days has seen a surge in tourists visiting South Korea.
The holiday was extended to mark the enthronement of Crown Prince Naruhito from the usual April 29 to May 5 period.
Duty free businesses saw big jumps in sales during the period compared to the previous year. Lotte Duty Free in Sogong-dong saw a 45 per cent sales increase, while Shinsegae Duty Free in Myeongdong saw an 80 per cent year-on-year increase.
Hotels in the main commercial districts of Seoul also saw double-digit occupancy boosts during the period above Golden Week figures for last year.
Tourism from China was also up 25 per cent during the period, although this rise was lower than in the first four months of this year.
Questions & Answers
Q.What specific factors contributed to the significant rise in South Korean retail sales during this holiday period?
What specific factors contributed to the significant rise in South Korean retail sales during this holiday period?
The extended Japanese Golden Week holiday, celebrating the enthronement of Crown Prince Naruhito, led to a surge in Japanese tourists. Also, tourism from China was up by 25% during the same period, boosting sales for duty-free shops and hotel occupancy.
Q.Which retailers specifically benefited from the increase in sales during the holiday season?
Which retailers specifically benefited from the increase in sales during the holiday season?
Lotte Duty Free in Sogong-dong reported a 45% sales increase. Shinsegae Duty Free in Myeongdong saw an even larger 80% year-on-year increase. Hotels in Seoul's main commercial districts also experienced double-digit occupancy boosts.
Q.Was the increase in Chinese tourism during the holiday period consistent with trends seen earlier in the year?
Was the increase in Chinese tourism during the holiday period consistent with trends seen earlier in the year?
No, the 25% rise in Chinese tourism during the holiday period was lower than the overall increase observed in the first four months of the current year. This suggests a slight deceleration in the growth rate from that market.
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