With trips to South Korea continuing to rise, spending by Chinese tourists in the country is expected to exceed $29 billion (30 trillion won) by 2020.
With 6.2 trillion won spent last year, spending will multiply nearly five times over the next six years. Overall retail sales in South Korea are expected to climb to 398.2 trillion won over the same time period, according to a study by Hana Daetoo Securities Co., reports GlobalPost.
“Chinese tourists provide an overwhelming source of growth momentum for all types of businesses in the local retail industry,” said Hana Daetoo Securities researcher Park Jong-dae.
In fact, Chinese tourists already make up more than one-third of all visitors to South Korea. Due to the strengthening yuan giving Chinese more spending power in the country, Chinese tourists accounted for 49 percent of the total money spent by tourists in Korea.
According to data from Korea Tourism Organization and Hana Daetoo Securities, the number of Chinese tourists visiting South Korea is expected to rise 19.8 percent per year, reaching 14.9 million by 2020.
The effect of Chinese spending on the South Korean economy has been significant, leading to 13.4 trillion won in additional production and 240,798 more jobs.
Duty-free items and cosmetics are expected to remain the favorite categories for Chinese shoppers. Duty-free spending is expected to quadruple to 9.2 trillion won by 2020, and spending on cosmetics is expected to nearly double to 5.2 trillion won in the same time period.
image credit: augustin rafael reyes