1 month ago
South Korea's Travel Account Posts Surplus for Third Consecutive Month
South Korea's travel account has been in the black for three months straight, thanks to more foreign tourists.
In May, the country made $220.5 million more from tourism than it spent.
This is a big deal because for the past six years, South Korea had been spending more on travel than it earned.
More people from other countries are visiting South Korea, and they're spending a lot of money there.
At the same time, fewer South Koreans are traveling abroad because plane tickets are more expensive.
Also, pension funds in South Korea, like the National Pension Service, have started buying more local stocks this year after selling them for a while.
South Korea's travel account posted a surplus of $220.5 million in May, the third consecutive month of surplus.
Travel income totaled $2.58 billion, exceeding travel spending of $2.36 billion.
Foreign visitors spent an average of $1,324 each, while South Koreans spent $1,007 abroad.
1.95 million foreign visitors arrived in May, up 19.4% from a year earlier.
Pension funds, including the National Pension Service, turned net buyers of local equities in July.
- Who
- South Korea's travel account and pension funds
- What
- Travel account surplus and pension funds' net buying of local equities
- Where
- South Korea
- When
- May and July
- Why
- Increased foreign visitors and higher airfares
Increased Foreign Visitors
Higher Airfares
Impact on Travel Account
Increased Foreign Visitors
Increased foreign visitors contribute to a surplus in South Korea's travel account.
Higher Airfares
Higher airfares discourage South Koreans from traveling abroad, reducing spending overseas.
Key facts
- Travel Account Surplus
- $220.5 million in May
- Travel Income
- $2.58 billion in May
- Travel Spending
- $2.36 billion in May
- Foreign Visitors
- 1.95 million in May, up 19.4% from a year earlier
- South Koreans Traveling Abroad
- 2.34 million in May, down 2.1% from a year earlier
- Average Spending by Foreign Visitors
- $1,324 per visitor
- Average Spending by South Koreans Abroad
- $1,007 per traveler
- Pension Funds' Net Buying
- 68.4 billion won (US$46.8 million) worth of shares in July
Quotes
Kim Nam‑jo
Professor of tourism at Hanyang University
“Foreign visitor numbers have risen sharply in recent months, driven by the growing popularity of the Korean Wave and the weakening won. At the same time, higher airfares stemming from the Middle East conflict have discouraged South Koreans from traveling abroad.”
thehansindia.com
Sources
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