Surge in Chinese tourist arrivals continues to boost South Korean duty free
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Chinese visitor numbers to South Korea in August climbed by +70.2% year-on-year to 873,771, according to the Korea Tourism Organization. The figures are distorted by the 2015 MERS health crisis which ravaged inbound tourism in 2015, prompting a -32.3% year-on-year fall in arrivals last August. A better base comparison is the +15.2% growth in August 2016 over the same month in 2014, when Chinese arrivals reached 757,683.
Chinese visitors are critical to South Korea’s travel retail sector (the world’s largest), representing 52.5% of total arrivals in the month.
For the first eight months of 2016 Chinese arrivals rose by +48.8% year-on-year to 5,608,046.
The importance of group tourists to the travel retail channel is underlined by the breakdown of Chinese visitor numbers (see table below) with 4,839,309 group travellers arriving in South Korea over the first eight months. Group tourists accounted for 86% of Chinese arrivals. Others (principally free independent travellers) represented just 731,731 arrivals, a 13% share, with business travellers and officials making up the balance.
Attracting the FIT market is an increasingly important battleground in the fight between retailers to attract big-name luxury brands.
However, arrivals by ‘others’ fell -7.0% year-on-year in the first eight months, while Chinese group tourist numbers surged +64.1%.
Japanese arrivals grew -51.7% to 225,456 in August, a 14% share.
The first eight months of 2016 saw a +23.5% rise in Japanese visitor numbers to 1,451,565, a 12.6% share.
Korean departures increased by +12.5% in August to 2,064,241; and for the first eight months by +16.8% to 14,780,387.
Visitor arrivals by gender for August; Source: Korea Tourism Organization
Accumulative visitor arrivals by gender for first eight months; Source: Korea Tourism Organization
Visitor arrivals by purpose and nationality for August; Source: Korea Tourism Organization
Accumulative visitor arrivals by purpose and nationality for first eight months; Source: Korea Tourism Organization
Outbound departures of Korean nationals by gender for the first eight months of 2016; Source: Korea Tourism Organization
Outbound departures of Korean nationals by age for the first eight months of 2016; Source: Korea Tourism Organization
Questions & Answers
Q.What is the more accurate comparison for the August 2016 Chinese visitor growth?
What is the more accurate comparison for the August 2016 Chinese visitor growth?
A better comparison for Chinese visitor growth is August 2016 over August 2014, when numbers grew by +15.2%. The previous August was distorted by the 2015 MERS health crisis.
Q.How many Chinese visitors arrived in South Korea during the first eight months of 2016?
How many Chinese visitors arrived in South Korea during the first eight months of 2016?
For the first eight months of 2016, Chinese arrivals increased by +48.8% year-on-year, reaching a total of 5,608,046. This group is crucial to the travel retail sector.
Q.What proportion of Chinese visitors are free independent travellers, and how did their numbers change?
What proportion of Chinese visitors are free independent travellers, and how did their numbers change?
Free independent travellers, categorised as 'others', represented a 13% share of Chinese arrivals in the first eight months, totalling 731,731. Their numbers actually fell by -7.0% year-on-year.
Q.What was the total number of Japanese visitors to South Korea in August and what was their share of arrivals?
What was the total number of Japanese visitors to South Korea in August and what was their share of arrivals?
Japanese arrivals reached 225,456 in August, accounting for a 14% share of total visitors. This represented a significant decrease of -51.7% compared to the previous year.
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