South Korea's tourism balance deficit has surpassed $10 billion last year, indicating a severe deterioration. Despite the rapid increase in foreign tourists since the COVID-19 pandemic, the deficit is widening as tourism revenue fails to keep pace with expenditure.

Key Points:

Increase in Foreign Tourists: The number of foreign tourists visiting South Korea in 2024 reached 16.37 million, recovering to 93.5% of the 2019 level.
This represents a 48.4% surge compared to 2023.
Stagnant Tourism Revenue: Tourism revenue remained at $16.45 billion, only 80% of the 2019 level.
It increased by only 9.2% compared to 2023, failing to match the growth in tourist numbers.
Reasons for Low Tourism Revenue: Decline in duty-free sales: From $17.84 billion in 2019 to $8.16 billion in 2024.
Short stays by cruise tourists also contributed.
Rise in Overseas Travel Expenditure: Overseas travel expenditure in 2024 reached $26.49 billion, recovering to 90.5% of the 2019 level.
This is a 6.1% increase compared to 2023.
Deepening Tourism Deficit: The tourism balance deficit, which was $8.52 billion in 2019, worsened to $10.04 billion in 2024.
The decline in Chinese tourists was analyzed as a main reason.