[NEWS IN FOCUS] More Koreans attracted to Mongolia's destination allure

Industry

Published: 02 Sep. 2023, 06:00

[NEWS IN FOCUS] More Koreans attracted to Mongolia's destination allure

The vast fields of Mongolia [HANATOUR]

As summer draws to a close, a growing number of Korean travelers are setting their sights on Mongolia over conventional choices in Japan and Southeast Asia.

Behind their decision is the lure of fresh cultural experiences, including stays in traditional gers and camel rides, and eco-retreats on offer in the lesser-explored Asian country.

There was a 320.2 percent surge in Korean tourists to Mongolia from January through June this year, recent data from the National Statistics Office of Mongolia showed, with 43,192 visitors compared to 10,278 during the same period last year.

By nationality, Koreans were the third-largest inbound tourists to Mongolia in the April-June period after the Russians and Chinese.

Mirroring this rise, flight frequencies increased by 102.46 percent with a total of 1,972 flights, according to Korea’s Air Portal System.

"I was drawn to Mongolia due to its vast natural beauty and the allure of something exotic, like gazing at stars amidst the night sky,” Kim Eun-bi, a 27-year-old office worker who recently visited Mongolia for her summer vacation, said. “The sight of scattered herds of cattle, horses, sheep and camels while traversing unpaved roads was both inspiring and enjoyable.”

“But seeing so many Korean travelers was a bit disappointing; I felt like I was in a Korean city,” she added.

Hanatour, Korea's largest travel agency, also underscored this trend. Bookings for Mongolia travel packages during the country's peak travel season — June to August — jumped by 284.3 percent in 2023 compared to the same period last year. Activities on offer include visits to the capital city Ulaanbaatar, ventures into the Gobi Desert, and ger stays. Other experiences include seeing a starlit sky at the Terelj National Park, trekking along the Olle Trail and horseback riding.

"In the wake of the Covid-19 pandemic, the demand for pristine locales is increasing,” a spokesperson for Hanatour said. “Mongolia's pleasant summer climate and the promise of new experiences have driven this booming demand.”

Cast members from MBC's "I Live Alone" visit Mongolia in an episode that aired on May 19. [SCREEN CAPTURE]

Recent television broadcasts featuring Mongolian expeditions have also significantly influenced this burgeoning trend. Episodes of MBC's variety show "I Live Alone" where the cast members journeyed to Mongolia aired in May, while JTBC's "Delivery to Mongolia," in which cast members deliver packages within the country, premiered on Aug. 18.

Falling airfares also contributed to Mongolia's escalating popularity. Once monopolized by Korean Air Lines and Asiana Airlines, the cost of a ticket to Mongolia was pricey. However, post-Covid, airlines such as Jeju Air and T'way Air have entered the market and driven competitive pricing. Round-trip airfares soared to 1 million won ($760) in 2019, but are currently more affordable at approximately 400,000 won ($304).

Over half of the newly established international routes in May were destined for Ulaanbaatar, with weekly flights operated by Korean airlines increasing from 9 in 2019 to 19.

Airlines adjusted their flight schedules in July and August to cater to the peak summer demand.

T'way Air inaugurated a new route from Daegu to Ulaanbaatar and bolstered its Incheon-Ulaanbaatar route from three to four flights weekly. Asiana Airlines augmented its Ulaanbaatar flights from four to five times weekly while Jeju Air expanded its Incheon-Ulaanbaatar route to five flights weekly. The Mongolian route is deemed one of the most promising within the airline industry, with pre-pandemic data from 2018-2019 showing occupancy rates of over 90 percent.

The trend goes both ways, with more Mongolians also traveling to Korea.

"While the Mongolia route has garnered significant interest from young Korean Millenials and Gen Zers in particular, it has traditionally been used by many Mongolian students and workers," Air Busan said. Of the passengers entering Busan from Mongolia via Air Busan in the first half of this year, over half, or 52 percent, held a Mongolian passport.

Further enhancing its allure, Ulaanbaatar has earned the nickname "Mongtan City" among Korean tourists due to its resemblance to Korea's Dongtan City in Gyeonggi. Ulaanbaatar features high-rise apartments and an array of Korean establishments, including large marts, convenience stores and coffee shops.

According to the Korea Trade-Investment Promotion Agency (Kotra), Korea is Mongolia’s fourth-largest trading partner. The bilateral trade volume between the two countries hit $21.2 billion in 2022, yielding a trade surplus of 3.8 billion dollars.

Backed by strong trade ties and a growing people exchange, Korean businesses are making inroads into new markets. Notably, Korean marts and convenience stores are emerging as dominant players in the Mongolian retail sector.

Just like in Korea, CU convenience stores in Mongolia also offer delivery services. [BGF RETAIL]

In 2018, CU, a convenience store chain, marked its entrance into the country with a branch at Ulaanbaatar's Shangri-La Hotel.

"Before our expansion, Mongolia did not have an established convenience store system,” a CU spokesperson said. “Considering the growth potential, geographical proximity to Korea as well as a high level of interest and preference for K-pop and Korean culture especially among the youth who exhibit high convenience store usage rates, we decided to venture into Mongolia."

CU currently boasts a market share of over 70 percent, operating a network of more than 330 stores across Mongolia. Additionally, GS25, another Korean player in the convenience store domain, operates a total of 206 stores. Emart, a Korean hypermarket chain, has taken a step forward by opening its third branch in Ulaanbaatar.

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