South Korea tourism and leisure industry dip by 40% due to Covid-19

Posted: Oct 19, 2020 12:04 Category: Asia ,

Due to the pandemic, South Korea faces a 40% fall in its tourism and leisure industries

The South Korean business analysis organisation ‘CXO Research Institute’ recently released the results of a consistent survery showing that the average sales of the entertainment-related industries such as hotels, aviation, and leisure in the first half of 2020 decreased by more than 40%. The survey was conducted on sales and operating profits of 50 companies that included cultural creativity, aviation, hotels, leisure, catering, and tourism in the first half of the year.

The sales of these 50 companies were 19.2258 trillion won in the first half of last year, compared with 11.2135 trillion won in the same exact period this year, showing a decrease of 41.7%. Among them, the tourism industry suffered the most severe impact. The average sales of the seven interviews companies decreased by 59.7% year on year. One example for istance is the sales of travel agency ‘JauTour’ which dropped sharply from 16.9 billion won to 3.1 billion won, a decrease of 81.4%.

The total sales of 11 leisure companies surveyed fell by an average of 51.4%. Among them, the ‘Kangwonland Casino’ with the highest sales dropped significantly from 740.1 billion won to 270.2 billion won, a decrease of 63.5%. Sales of the six major hotels also decreased by an average o 42.1%. The well-known Lotte Hotel also reduced its sales from approximately 2.8 trillion won in the first half of last year to approximately 1.55 trillion won this year, a decrease of 44.6%. Last but not least, the performance of the remaining six Korean aviation companies has decreased by an average of 38.7%.

CXO Research Institute also stated that although in Korea, the scale of performance of aviation, hotels, and tourism are much smaller than electronics and automobiles. It’s still the measure of the recovery of first-line spending power of Korean people.

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