Travel deficit jumps to 6-year high in H1

[Photo by Han Joo-hyung]

South Korea suffered its largest tourism deficit in six years during the first half of 2024, as outbound Korean travelers spent far more than inbound foreign visitors, data showed on Thursday.

According to the Bank of Korea on Thursday, the country’s travel balance posted a deficit of $6.48 billion in the first half of 2024, the largest since 2018’s $7.83 billion deficit. Foreign tourists spent only $7.84 billion in the country, while South Koreans spent $14.32 billion abroad during the period, and the travel deficit is expected to worsen moving forward.

According to Incheon International Airport Corp., 30.45 million travelers left the country via Incheon International Airport in the first half of the year, a 39.5 percent increase compared to the same period a year ago.

If this trend continues, the number of outbound travelers this year could exceed 70 million, hitting levels similar to those before the Covid-19 pandemic in 2019, when 70.58 million people traveled abroad.

The backwardness of the country’s tourism industry, characterized by rampant overpricing and the lack of effective policies, are cited as major problems. In a recent survey conducted by SK communications Co. of 6,311 adult men and women across the country, 72 percent of respondents said they avoided domestic travel during the summer due to “exorbitant accommodation fees.”