Foreign Tourists Flock to Seoul, Driving a 58% Surge in Tourism Spending

[Financial News]  Tourism spending in Seoul is rising rapidly as the number of foreign visitors reaches a record high. With 1.72 million visitors in August, up 23.3% from a year earlier, card spending also jumped 58.1%.
The Seoul Metropolitan Government said on the 6th that foreign tourists' card spending in August reached 1.0327 trillion won, up 379.4 billion won from 653.3 billion won in the same month last year. Monthly spending has exceeded 1 trillion won for five consecutive months since April.
Cumulative spending this year also neared last year's full-year level. Foreign card spending from January through August totaled 7.7813 trillion won, up 59.9% from the same period a year earlier. That was just 156.2 billion won short of the 7.9375 trillion won spent throughout last year.
Shopping accounted for the largest share of foreign tourists' spending. Through August this year, 46.6% of total card spending came from shopping, followed by medical care and wellness at 23.8%. Food and beverage and lodging accounted for 13.2% and 10.4%, respectively. Spending at large shopping malls reached 1.7044 trillion won, up 77.5% from the same period a year earlier.
One notable change is that foreign spending is spreading to neighborhood commercial areas. Card spending in these areas increased 80.9%, outpacing developed commercial districts at 57.6% and traditional markets at 50.1%. Spending rose particularly sharply around Dosan Park, up 240.1%, and around Gyeongsu Elementary School in Seongsu-dong, up 206.6%. Gwangjang Market also saw a 127.4% increase from a year earlier.
Spending also continued to rise in major tourist areas. Foreign card spending in Seongsu-dong increased 103.7% from a year earlier, more than doubling, while the Myeong-dong area saw a 74.7% increase. Yeouido IFC, The Hyundai Seoul, Apgujeong and Gangnam Station also posted growth rates in the 50% range.
The increase in spending appears to have been driven by rising visitor numbers. From January through August this year, 11.56 million foreign visitors came to Seoul, up 21.6% from the same period last year. In August alone, visitors from China made up the largest group at 636,000, followed by Japan at 322,000 and Taiwan at 188,000. These three countries accounted for 66.4% of all visitors.
The Seoul Metropolitan Government is strengthening nighttime tourism to channel increased demand into sales for local commercial areas. It plans to develop Dongdaemun Design Plaza (DDP), Namsan, Gwanghwamun and Hangang River as nighttime hubs. The government also plans to expand attractions that encourage tourists to stay in Seoul at night, including Dalbit Yajang and nighttime operations at cultural facilities.
Cho Sung-ho, head of the Seoul Metropolitan Government's Tourism and Sports Bureau, said, "Following a record high in foreign visitors in August, tourism spending is also rising rapidly, further increasing the economic impact of tourism in Seoul. We will strengthen connections between nighttime content and local commercial areas, centered on Seoul's nighttime economy, so that tourists stay longer in Seoul and tourism spending spreads throughout the city."
[email protected] Seong Cho-rong Reporter