[Edaily Reporter Kwon Oh-seok] NH Investment & Securities stated on the 5th regarding stocks related to the leisure industry, such as hotels and casinos, that "in the domestic market, shopping consumption is expected to increase in the short term due to a surge in Chinese inbound tourists, while hotel consumption is expected to grow in the medium to long term as the proportion of long-distance customers expands."

Lee Hwa-jeong, an analyst at NH Investment & Securities, said, “The cumulative number of inbound tourists (visiting Korea) from January to April 2026 reached 6.77 million, a record high. Considering that inbound tourist arrivals from January to April typically account for 30% of the annual total, the government’s annual target of 23 million for 2026 is likely to be easily achieved,” she said. “Chinese tourists are the biggest contributors to this inbound growth. This is because the effects of the visa waiver for Chinese group tourists have become visible since last January, and we are also seeing spillover benefits from the Korea-Japan travel ban."
He continued, “A notable change is the accelerating influx of visitors from Western regions such as North America and Europe. Western tourists stay approximately 40% longer on average than Chinese tourists and are less price-sensitive regarding accommodation costs.” He elaborated, “In fact, the increase in the proportion of Western visitors to Japan from 2023 to 2025 led to a sharp rise in per-person spending, particularly on accommodation.”
He continued, “This growth in inbound tourism naturally leads to increased demand for hotels, ultimately driving an increase in revenue per available room (RevPAR). "While an increase in room occupancy (hereinafter 'Occ.') drove domestic hotel RevPAR growth in 2025, it is expected that an increase in average daily rate (hereinafter 'ADR') based on supply-demand imbalances will drive RevPAR growth from 2026 onward," "From a medium- to long-term perspective, the increase in room demand resulting from the growing proportion of Western visitors is expected to drive a structural upward trend in ADR."
The casino sector is also expected to benefit from the trickle-down effect of inbound growth, though the extent of these benefits is projected to vary depending on the location of each facility. The analyst noted, “Looking at historical data, the segment most directly linked to the growth in inbound visitors is ‘mass’ gaming. Therefore, in the short term, to maximize benefits, it is necessary to have locations favorable for attracting mass players and attractive facilities that draw crowds.” He added, “What will drive medium- to long-term growth is the operating leverage effect resulting from an increase in high-roller visitors.”
Maintaining #GS P&L as the top pick, the analyst noted, “This operator is attractive due to its differentiated revenue growth and profitability improvements driven by occupancy stability and ADR growth potential, underpinned by the competitiveness of its property locations. In particular, the speed at which the Westin Seoul, which reopened last September, is normalizing its operating metrics is faster than initially expected, which is also appealing. As we enter the peak season in earnest, the most resilient earnings growth within the industry is expected.”
He identified #Paradise as the second-choice stock. He added, “This operator possesses the strongest mass-market customer attraction capabilities in terms of overall property locations and infrastructure. Furthermore, the benefits of P-City’s acquisition of Hyatt are gradually becoming visible.” He continued, “Although the stock price has been stagnant for some time as the company navigated a period of cost pressures, it is worth anticipating the profit leverage effect driven by high revenue growth in July and August as we enter the peak season.”