[Edaily Kang Gyeong-rok Travel Reporter] Although the number of foreign tourists exceeded 2 million per month, South Korea’s tourism balance recorded a deficit for the third consecutive month, with the deficit in September approaching $500 million (approximately 690 billion won). This is because while per-person spending by foreign visitors to Korea decreased, per-person travel spending by Koreans traveling abroad actually increased, causing the rise in outbound spending to far outpace the rise in inbound revenue. Critics point out that simply increasing the number of foreign visitors—a “quantitative attraction” strategy—is failing to translate into “qualitative revenue” that actually flows into the domestic economy, highlighting the urgent need to extend the length of stay and shift toward a paradigm centered on high-value-added content.

◇Rise in Spending Accounts for 70% of the Worsening Deficit
According to data from the Korea Tourism Data Lab of the Korea Tourism Organization and the Bank of Korea’s balance of payments statistics released on the 10th, South Korea’s tourism balance recorded a deficit of $498 million in September. The deficit widened by $98.6 million compared to the previous month ($399.4 million deficit).
Following a surplus of $596.6 million in June, the balance turned to a deficit in July ($314.4 million) and has remained in the red for three consecutive months.
The primary factor behind the renewed deterioration in the tourism balance is the sharp surge in overseas travel spending by domestic residents. Comparing June and September, the tourism balance worsened by a total of $1.095 billion. Of this, approximately 70% is attributed to increased tourism spending, while the remaining 30% is attributed to a decline in tourism revenue.
Tourism expenditures in September totaled $2.958 billion, an increase of $771 million (35.3%) compared to June ($2.187 billion), whereas tourism revenue stood at $2.46 billion, a decrease of $324 million (11.6%) compared to June ($2.784 billion). However, analysts note that since this period included seasonal peak periods such as the summer vacation season, it is difficult to conclude that this represents a purely structural deterioration.

A clear disparity was also evident between the number of foreign tourists attracted and the actual tourism revenue collected. The number of international tourists visiting South Korea in September reached 2,062,042, a 21.1% increase compared to the same month last year. However, the growth rate of tourism revenue during the same period was only 16.4%, 4.7 percentage points lower than the growth rate in visitor numbers. Consequently, tourism revenue per international visitor fell by 3.9% year-over-year to $1,193.
In contrast, the number of South Korean citizens traveling abroad in September was 2,268,409, a 1.5% increase compared to the same month last year, and total tourism spending rose by 5.3%. Tourism expenditure per domestic traveler stood at $1,304, a 3.8% increase compared to the same month last year. Consequently, expenditure per tourist exceeded revenue by $111. As recently as June, tourism revenue per person had exceeded expenditure by $306, but the situation reversed in September.
Domestic card spending by foreign visitors showed a strong upward trend. According to data from the Ministry of Culture, Sports and Tourism, card spending by foreign visitors in the domestic tourism sector from January through September of this year totaled 15.9416 trillion won, a sharp 47.7% increase compared to the same period last year. This figure is more than double the cumulative growth rate of foreign visitors to Korea (21.5%).
However, credit card spending and tourism revenue as measured by the balance of payments are calculated differently. Credit card spending is based primarily on actual transaction records, whereas tourism revenue is estimated based on the balance of payments (BOP) criteria, which accounts for all expenditures made by foreign visitors during their stay.
Experts note that “an increase in credit card spending does not directly translate into an increase in per-capita tourism revenue,” adding that “it is necessary to conduct further analysis of the average length of stay by nationality and the consumption patterns by sector, such as lodging, food, medical services, and shopping.”
◇Government: “Focus on High-Value-Added Tourism Involving Extended Stays in Local Areas”
However, the cumulative annual figures have shown a marked improvement compared to the previous year. The tourism balance deficit in September ($498 million) narrowed by 28.4% compared to the same month last year ($695.4 million deficit). The cumulative tourism balance deficit for January through September of this year also stood at $2.2096 billion, a 70.9% decrease compared to the same period last year. This is because the foundation for annual revenue has become more solid due to the increase in visitors to Korea.
The problem is that the pace of improvement compared to the previous year has been slowing as the second half of the year progresses. The year-over-year improvement in the tourism balance fell sharply from $1.4434 billion in June to $197.4 million in September.
The government forecasts that the annual number of international visitors to Korea will exceed 20 million for the first time in history this year, reaching 23 million by year-end. At a recent press briefing, Minister of Culture, Sports and Tourism Choi Hwi-young stated, “We will manage both the quantitative achievements, such as the number of visitors to Korea, and the qualitative achievements of tourism,” adding, “We will disperse foreign tourists, who are currently concentrated in the Seoul metropolitan area, to regional areas and focus on expanding high-value-added tourism content that encourages longer stays in those regions.”