In a significant move to revitalize economic cooperation, the Republic of Korea (ROK) has introduced a nine-month visa-free policy for Chinese tour groups starting this week. This decision reciprocates China’s unilateral visa exemption for ROK visitors announced in November 2023, signaling a thaw in cross-border engagement amid global economic uncertainties.
Economic Revival Through Tourism
The ROK’s policy targets sluggish domestic demand, with tourism emerging as a key recovery driver. Chinese tourists historically dominated the ROK’s inbound market, contributing 47.5% of foreign arrivals at their peak in 2016. While numbers dipped after the 2017 THAAD dispute and pandemic disruptions, 2024 saw 4.6 million Chinese visitors—a 128% year-on-year surge.
Spending Power Fuels Optimism
Chinese tourists’ average spending of $1,689 per trip in 2019—outpacing other nationalities—has ROK retailers, airlines, and hotels preparing for a windfall. Flight searches to Seoul spiked 70% on Chinese platforms after the August announcement, with industry analysts predicting a $1.2 billion boost during China’s upcoming National Day and Mid-Autumn Festival travel period.
Strategic Diversification
Beyond immediate gains, the policy reflects Seoul’s broader strategy to reduce reliance on volatile export markets. As global supply chains shift, strengthening domestic consumption through tourism aligns with long-term economic resilience. Observers note this could pave the way for deeper China-ROK collaboration in tech and green energy sectors.
