Foreign tourism boosts casino stocks in South Korea leading to growth in the sector
**Booming South Korean Tourism and Casino Sector Amidst Visa Policy Changes**
South Korea's tourism and casino sectors are experiencing a surge, with shares in related industries hitting record highs. Lotte Tour Development's shares have soared over 50% since January, and the National Pension Service has increased its stake in Lotte Tour from 5.01% to 7.05%.
This upward trend is not limited to Lotte Tour. Hotel owners in South Korea are poised to benefit from the projected increase in tourism, with inbound tourism expected to return to pre-COVID levels this year. Korean Air and other major carriers have launched new routes and increased flights to destinations such as Macau, Bangkok, Taiwan, and China, in anticipation of increased tourism.
The South Korean tourism sector has called for more stringent measures to combat illegal gambling, as the potential for unlicensed gambling to flourish is a concern amidst the projected increase in tourism. The casino sector, which relies entirely on international visitors, is experiencing gains ahead of planned visa exemptions for Chinese tourists.
Recent quarters have seen South Korea considering easing visa restrictions on Chinese nationals, part of broader efforts to boost tourism and economic ties. If implemented, this could lead to an increase in Chinese visitors, positively impacting both the tourism industry and sectors like casinos that cater to international tourists.
China has also expanded its visa-free policies to attract more tourists and strengthen diplomatic ties. This could potentially influence regional tourism dynamics if travelers choose between destinations like South Korea and China.
Grand Korea Leisure and Paradise, major players in South Korea's casino sector, have seen their shares rise by 7% and 28% respectively since January. The visa policy change for Chinese tourists isn't expected until later in the third quarter. Travel demand is projected to rise during the peak summer season, with major holidays in Japan (Obon) and China (Mid-Autumn Festival and National Day "Golden Week") approaching.
As of Saturday, Lotte Tour had climbed 37.4% in the past month alone. The second half of the year is expected to see a stronger performance in the South Korean tourism industry due to the projected increase in tourism. However, specific reports or data releases from South Korean government agencies or industry associations would be needed for a precise analysis of how these changes have affected South Korea's casino and tourism sectors.
The surge in South Korea's tourism and casino sectors has led to increased interest in lifestyle travel, as visitors seek luxury experiences and entertainment options. grandfather_korea_leisure, a major player in South Korea's casino sector, has seen its shares rise significantly, indicating optimism in the industry's potential growth, particularly ahead of planned visa exemptions for Chinese tourists.
