Chinese group tours return to Korea after six-year hiatus

Chinese tourists arrive at the Incheon Port International Passenger Terminal on Wednesday. These tourists had embarked on the Huadong Ferry from Shidao, China, the day before. [YONHAP]

Chinese group tourists will arrive in Korea on Thursday for the first time in more than six years after the Chinese government lifted bans on Aug. 10.

This marks the first time Chinese tourists have been allowed to visit Korea as part of organized groups since China imposed the ban in 2017 due to the deployment of the Thaad missile defense system.

The inaugural group of 31 tourists is a result of a joint program by the Korea Tourism Organization (KTO) and China's largest state-owned travel agency, CYTS, and commemorates the 31st anniversary of diplomatic relations between the two nations.

Following the reissue of group travel visas by China for Korean trips on Aug. 10, Chinese travelers were seen arriving at Incheon and Pyeongtaek ports, having taken overnight passenger ships from Qingdao and Weihai. This marked the renewal of ferry services between the two countries after a pause of over three years due to the Covid-19 pandemic.

However, they were believed to be independent travelers, employees on sponsored vacations from Chinese companies or daigou (Chinese shoppers who buy tax-free goods in Korea to sell them back in China), according to industry insiders.

"The process of developing comprehensive travel packages, recruiting tourists, and navigating the visa procedures takes at least two weeks," an official from the KTO told the Korea JoongAng Daily on Wednesday. "The Chinese tourists to arrive on Thursday held officially issued group tourist visas for tourism entry purposes."

The 31 visitors arriving Thursday from Beijing as part of the KTO program are scheduled to visit Paju's Heyri Art Village, Yongin Folk Village, Seoul's Blue House and the Gyeongbok Palace during a three-night, four-day stay.

Businesses in tourism, retail and air travel are welcoming Chinese tour groups as they are known to be big spenders, spending three times more than individual tourists, insiders say.

As anticipation builds for an uptick in Chinese group tourism, industry experts voice concerns regarding the readiness of the tourism infrastructure, which is still grappling with the pandemic's aftermath.

First of all, airline routes between Korea and China are experiencing a slower recovery compared to other international routes. Recent data from Incheon Airport's international flight operations in July revealed that while overall route recovery reached 82 percent when compared to July 2019 levels, routes to China were at only 62 percent.

"Currently, there's a cautious evaluation of expanding routes to China, with plans to gradually increase based on the situation," said a source within the aviation industry, speaking on the condition of anonymity. "China's economic and business ties with Korea have diminished and there's a reduced interest among Korean travelers to visit China — so the demand isn't as robust as it once was. Given the uncertainty of passenger acquisition due to fluctuating circumstances, airlines are taking a cautious approach and are unable to aggressively pursue an expansion of routes to China."

Beyond just flight routes, tourism infrastructure has failed to recover following the Covid-19 pandemic.

"Many people I knew previously associated with the tourism sector have transitioned to new roles during the prolonged Covid pandemic," said Song Lee, CEO of a tour operator of China inbound tours in Korea named GK Tour. "It is difficult for them to come back even as tourism picks up again."

Additionally, the economic strains caused by the pandemic have led to the closure of many budget-friendly hotels and larger restaurants that can accommodate sizable groups of tourists. Other accommodations and restaurants have raised their prices during the pandemic, making it harder to accommodate Chinese group tourists.

The travel firms that survived also remain vigilant about the potential resurgence of budget-friendly "dumping" travel packages.

Such tour packages, which offer a cut-rate experience and limited activities, were pinpointed as a primary cause for compromising the overall quality of tourist experiences in Korea. A common practice among domestic travel agencies to attract group travelers was engaging in competitive pricing battles or paying commission fees to Chinese travel agencies.

"It is a problem that there are still Korean tour agencies that accept such remarkably-low prices proposed by the Chinese entities," Lee noted. "Consequently, prices continue to plummet, subsequently impacting the caliber of travel packages in Korea, and this deteriorating quality also leaves a negative impression of Chinese visitors about their Korean experiences."

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]