The total contribution of travel and tourism to South Korea’s GDP amounted to around 81 trillion South Korean won in 2017. This number includes direct, indirect, as well as induced contributions. The value decreased in 2017 due to the decrease in visitor arrivals that year.

Importance of tourists from Mainland China

After a peak in 2016, the number of visitors from Mainland China to South Korea plunged the following year, due to political tension between the two countries. The tensions led to Beijing ordering travel companies to stop selling group tours to South Korea. Since Chinese tourists made up for almost half of all visitor arrivals to South Korea, this had a notable impact on the otherwise steadily growing tourism industry. The number of visitors from Mainland China started to grow again in 2018.

Hallyu boosts the industry

Hallyu, also known as the “Korean wave” is a common term referring to the South Korean popular culture, including music, TV shows, and movies. With South Korean popular culture gaining popularity around the globe, the number of visitors to the countries grows as well. For example, after the TV drama Winter Sonata gained popularity overseas in 2002, the number of foreign visitors to its rural filming location Nami Island started to grow. The drama is widely considered to be the start of Hallyu throughout worldwide. Another example is the Korean pop boy band BTS, which is currently considered as the biggest boy band in the world. In 2018, the Seoul Metropolitan Government gave credit to the band for boosting the tourism industry.

South Korea: International tourism revenue, percent of GDP: The latest value from 2020 is 0.72 percent, a decline from 1.54 percent in 2019. In comparison, the world average is 3.33 percent, based on data from 125 countries. Historically, the average for South Korea from 1995 to 2020 is 1.26 percent. The minimum value, 0.72 percent, was reached in 2020 while the maximum of 2.16 percent was recorded in 1998.

Tourism Revenues in South Korea decreased to 1685.90 USD Million in May from 1847.70 USD Million in April of 2025. This dataset provides - South Korea Tourism Revenues- actual values, historical data, forecast, chart, statistics, economic calendar and news.

The tourism sector GDP share in South Korea was forecast to continuously increase between 2023 and 2028 by in total 0.6 percentage points. The share is estimated to amount to 2.71 percent in 2028. While the share was forecast to increase significant in the next years, the increase will slow down in the future.Depited is the economic contribution of the tourism sector in relation to the gross domestic product of the country or region at hand.The forecast has been adjusted for the expected impact of COVID-19.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in more than 150 countries and regions worldwide. All input data are sourced from international institutions, national statistical offices, and trade associations. All data has been are processed to generate comparable datasets (see supplementary notes under details for more information).Find more key insights for the tourism sector GDP share in countries like Japan and China.

Forecast: Total Tourism GDP in South Korea 2024 - 2028 Discover more data with ReportLinker!

This statistic shows the contribution of travel and tourism to the gross domestic product (GDP) in South Korea in 2017, by type. In 2017, travel and tourism indirectly contributed approximately 37.72 trillion South Korean won to the GDP of South Korea.

This statistic shows the direct contribution of travel and tourism to GDP in South Korea from 2012 to 2017 with estimates of 2018 and 2028. In 2028, travel and tourism was forecasted to make a direct contribution of nearly 50 trillion South Korean won to the GDP of South Korea.

The South Korea travel retail market, valued at $12.6 billion in 2025, exhibits robust growth potential, projected to expand at a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is driven by several key factors. Firstly, South Korea's increasing popularity as a tourist destination fuels demand for duty-free goods. The rise of affluent Chinese and other Asian tourists significantly contributes to this growth. Secondly, the strategic expansion and modernization of airport infrastructure and duty-free shops enhance the shopping experience, attracting more consumers. Finally, innovative marketing strategies employed by major players like Lotte Duty Free and The Shilla Duty Free, along with the introduction of new product lines in beauty, personal care, and luxury goods cater to evolving consumer preferences. The market is segmented by product type (beauty and personal care dominating), and distribution channels (airports holding the largest share). However, challenges exist, including fluctuating global economic conditions and potential shifts in tourist patterns impacting overall market performance. Despite these challenges, the South Korean travel retail sector demonstrates significant resilience. The consistent high CAGR reflects the enduring appeal of duty-free shopping and the country's commitment to developing its tourism industry. The diverse product offerings across various segments ensure a broad consumer base. Competition among major players drives innovation and keeps prices competitive, benefiting consumers. While economic uncertainty poses a risk, strategic partnerships and diversification efforts by operators help mitigate these factors. The future outlook remains positive, with continued expansion expected across all major segments, further consolidating South Korea's position as a leading travel retail market in Asia. This comprehensive report provides an in-depth analysis of the dynamic South Korea travel retail market, encompassing the period from 2019 to 2033. It offers invaluable insights for businesses seeking to understand the market's characteristics, trends, and future growth potential. With a focus on key players like Lotte Duty Free, The Shilla Duty Free, and Shinsegae Duty Free, this report utilizes data from the base year 2025 and forecasts up to 2033, providing a clear picture of this multi-billion dollar industry. Recent developments include: July 2022: Dufry AG, the world’s largest duty-free operator, acquired Autogrill SpA, the motorway and airport catering company, from the Benetton Family., April 2022: South Korea Lotte Duty Free has partnered with Korean Seven, the operator of the 7-Eleven convenience store chain, to expand local market sales of so-called domestic customs-cleared duty-free goods.. Key drivers for this market are: Beauty Products, Jewellery, Fashion and Accessories are Faster Developing Segments in the Market. Potential restraints include: Beauty Products, Jewellery, Fashion and Accessories are Faster Developing Segments in the Market. Notable trends are: Growing Disposable Income is Driving the Market.

In 2023, a real GDP of around *** trillion South Korean won was produced by the wholesale and retail, restaurant, and hotels sector in South Korea. The industry was directly affected by the COVID-19 pandemic in 2020, then slowly covered in the following years.

Travel services (% of service exports) of Republic of Korea went down by 1.15% from 12.2 % in 2023 to 12.0 % in 2024. Since the 5.11% surge in 2022, travel services (% of service exports) shot up by 27.08% in 2024. Travel covers goods and services acquired from an economy by travelers for their own use during visits of less than one year in that economy for either business or personal purposes. Travel includes local transport (i.e., transport within the economy being visited and provided by a resident of that economy), but excludes international transport (which is included in passenger transport. Travel also excludes goods for resale, which are included in general merchandise.

This paper explores the impact of the COVID-19 pandemic and the Korean government's fiscal measures on macroeconomic and microeconomic shifts. Utilizing the Global Trade Analysis Project (GTAP) computable general equilibrium model and database version 11, with 2017 as the base year, we aggregated 160 regions and 65 sectors into 9 regions and 18 sectors. The model projected the global economy to 2020 using variables such as real GDP, population, capital stock, and labor supply for a baseline scenario. Two policy scenarios assessed the impacts of the pandemic and a fiscal stimulus package. Results indicated a global decline in real GDP and welfare, with disruptions in supply chains and increased trade costs negatively affecting import and export volumes. Sectors such as tourism were particularly impacted. Specifically, the Korean economy faced a significant negative impact from the pandemic. Despite government fiscal measures that positively influenced real GDP, Korea's real GDP contracted by 1.7% in 2020, deviating from the pre-pandemic growth changes of approximately 2% per year. Welfare losses amounted to US$103 billion, driven by decreased consumer spending and increased unemployment. Export and import volumes fell, leading to a narrower trade deficit of US$17 billion compared to the previous year. The study underscores the need for targeted fiscal measures to mitigate adverse effects, recommending policies to stimulate private household consumption, support affected sectors, and enhance Korea's international trade competitiveness.

18.0 (%) in 2024. Travel covers goods and services acquired from an economy by travelers for their own use during visits of less than one year in that economy for either business or personal purposes. Travel includes local transport (i.e., transport within the economy being visited and provided by a resident of that economy), but excludes international transport (which is included in passenger transport. Travel also excludes goods for resale, which are included in general merchandise.

As of August 28, 2023, South Korea has confirmed a total of 34,436,586 positive cases of coronavirus (COVID-19), including 35,812 deaths. The first case coronavirus in South Korea was discovered in January 2020. Currently, 25.57 cases per 100,000 people are being confirmed, down from 35.74 cases last month.

Case development trend

In the middle of February 2020, novel coronavirus (COVID-19) began to increase exponentially from patient 31, who was known as a super propagator. With a quick response by the government, the daily new cases once dropped to a single-digit. In May 2020, around three hundreds of new infections were related to cluster infections that occurred in some clubs at Itaewon, an entertainment district in Seoul. Seoul and the metropolitan areas were hit hard by this Itaewon infection. Following the second wave of infections in August, the government announced it was facing the third wave in November with 200 to 300 confirmed cases every day. A fourth wave started in July 2021 from the spread of the delta variant and low vaccination rates. While vaccination rates have risen significantly since then, the highly infectious omicron variant led to a record-breaking rise in cases. This began easing up in March of 2022, though numbers began to rise again around August of 2022. As of October 2022, case numbers are decreasing again.

Economic impact on Korean economy

The Korean economy is interdependent on many countries over the world, so the impact of coronavirus on Korean economy is significant. According to recent OECD forecasts, South Korea's GDP is projected to show positive growth in 2022 and 2023. The first sector the coronavirus impacted was tourism, caused by decreasing numbers of inbound tourists and domestic sales. In the first quarter of 2020, tourism revenue was expected to decrease by 2.9 trillion won. In addition, Korean companies predicted that the damage caused by the losses in sales and exports would be significant. In particular, the South Korean automotive industry was considered to be the most affected industry, as automobile production and parts supply stopped at factories in China.For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Facts and Figures page.

Hawaii tourism economy as of 2025 stands at USD 31.3 Billion. As of 2035, it will stand at USD 49.0 Billion with 4.6% CAGR growth. Complexity in consumer behavior and marketing as well as infrastructure modifications will be the drivers for market growth with future stage predictability anticipated.

Metric	Value
Market Size in 2025	USD 31.3 Billion
Projected Market Size in 2035	USD 49.0 Billion
CAGR (2025 to 2035)	4.6%

Country-wise Outlook

Country	CAGR (2025 to 2035)
USA	4.8%

Country	CAGR (2025 to 2035)
UK	4.3%

Country	CAGR (2025 to 2035)
European Union (EU)	4.5%

Country	CAGR (2025 to 2035)
Japan	4.7%

Country	CAGR (2025 to 2035)
South Korea	4.6%

Competitive Outlook

Company/Organization Name	Estimated Market Share (%)
Hawaiian Airlines	15-20%
Hilton Hawaiian Village (Hilton Hotels & Resorts)	12-16%
Marriott International (Hawaii Resorts & Hotels)	10-14%
Pleasant Holidays	8-12%
Outrigger Hospitality Group	5-9%
Other Operators & Local Tourism Businesses (combined)	35-45%

Korea BOP: Current Account: Exports: Service: Travel: % of Service Exports data was reported at 15.346 % in 2017. This records a decrease from the previous number of 18.262 % for 2016. Korea BOP: Current Account: Exports: Service: Travel: % of Service Exports data is updated yearly, averaging 15.457 % from Dec 1976 (Median) to 2017, with 42 observations. The data reached an all-time high of 33.549 % in 1989 and a record low of 7.001 % in 1982. Korea BOP: Current Account: Exports: Service: Travel: % of Service Exports data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Korea – Table KR.World Bank: Balance of Payments: Current Account. Travel covers goods and services acquired from an economy by travelers for their own use during visits of less than one year in that economy for either business or personal purposes. Travel includes local transport (i.e., transport within the economy being visited and provided by a resident of that economy), but excludes international transport (which is included in passenger transport. Travel also excludes goods for resale, which are included in general merchandise.; ; International Monetary Fund, Balance of Payments Statistics Yearbook and data files.; Weighted average; Note: Data are based on the sixth edition of the IMF's Balance of Payments Manual (BPM6) and are only available from 2005 onwards.

As one of the Asia-Pacific region's leading industries, the travel and tourism sector in China provided over ** million jobs in 2023. Likewise, a high number of jobs were also generated in India thanks to the travel and tourism market, with about ** million jobs. In fact, many Asia-Pacific countries made the worldwide ranking for the most jobs produced by the travel and tourism industry. Economic contribution Through the generation of more jobs and increased levels of affluence in many Asia-Pacific countries, citizens now have more money to be able to travel. Domestic and intra-regional travel has created a positive impact on the economy, as overall domestic tourism expenditure has increased, prevalent especially in Southeast Asia. The travel and tourism industry also made significant contributions towards the GDPs of Asia-Pacific countries. As many countries depend on the industry to maintain and stimulate their economies, they are making it easier for travelers to gain access to their countries through relaxing visa requirements and introducing cheaper airlines. The future of tourism The Asia-Pacific region has adapted to the current demands of travelers, who increasingly wish for more environmentally friendly methods of travel. Regarding the environmental footprint, the contributions of travel and tourism in the region to the total greenhouse gas emissions has slightly increased year-over-year since 2021, but stayed below ** percent. The most sustainable travel destinations in APAC were Goyang, South Korea and Singapore, according to the sustainability index. APAC proved itself in terms of growing popularity, as the region demonstrated high tourist arrivals.

In 2019, *** inns with ** to ** rooms were operating in Jeju in South Korea. In total, the number of inns in South Korea reached around ** thousand.In 2017, the tourism industry contributed around ** trillion South Korean won to the country's GDP.

Korea Imports: % of Commercial Service Imports: Services: Travel data was reported at 25.433 % in 2017. This records an increase from the previous number of 24.487 % for 2016. Korea Imports: % of Commercial Service Imports: Services: Travel data is updated yearly, averaging 20.077 % from Dec 1976 (Median) to 2017, with 42 observations. The data reached an all-time high of 28.581 % in 2002 and a record low of 4.074 % in 1976. Korea Imports: % of Commercial Service Imports: Services: Travel data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s South Korea – Table KR.World Bank.WDI: Imports. Travel services (% of commercial service imports) covers goods and services acquired from an economy by travelers in that economy for their own use during visits of less than one year for business or personal purposes. Travel services include the goods and services consumed by travelers, such as lodging, meals, and transport (within the economy visited).; ; International Monetary Fund, Balance of Payments Statistics Yearbook and data files.; Weighted average;

In 2019, ***** inns with ** to ** rooms were operating in Jeonnam province in South Korea. In total, the number of inns in South Korea reached around ** thousand.In 2017, the tourism industry contributed around ** trillion South Korean won to the country's GDP.

In 2019, around 850 inns with 20 to 49 rooms were operating in Gangwon province in South Korea. In total, the number of inns in South Korea reached around 23 thousand.In 2017, the tourism industry contributed around 81 trillion South Korean won to the country's GDP.