China’s ban on group tours to Korea, in retaliation for Seoul’s decision to deploy the THAAD anti-missile system, is having a devastating impact on the local economy. Kim Minhoe has more in this report.



Report

The international terminal at the Jeju International Airport is in an unusual state - it’s quiet.

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Chinese arrivals plummet

The number of daily flights connecting Jeju and China has decreased from 20 in 2016 to only 13 this year.

As a result, the number of Chinese tourists visiting Jeju has dropped by more than 70% this year compared to 2016.

There are roughly only 1,000 visitors from China arriving each day.

Beijing is already banning group tours to South Korea in response to Seoul’s decision to deploy the THAAD anti-missile system.

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Chinese travel agencies no longer selling Korean tours

In addition, Chinese travel agencies have stopped selling Korean tour packages, meaning that local businesses are being hit hard.

Baozen Street, which used to be packed with Chinese tourists, is now uncharacteristically bare.

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Baozen Street sales down as much as 80%

Sales at stores on the street have plunged by up to 80 percent since early March.

What is even worse is that Chinese customs authorities have tightened inspections at airports.

Chinese visitors don’t want to bring Korean products back to China, either, and so Korean merchants are singing the blues.

INTERVIEW
Baozen Street merchant
There’s been about a 90% drop in the number of Chinese tourists since yesterday. There have been hardly any today.
<인터뷰: 바오젠거리 상인>
"어제부터 거의 90% 없다고 봐야할텐데...오늘은 거의 중국사람들이 없어요. 지금"

Duty free shops have seen tourist groups simply vanish since last week.

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Fewer shoppers at duty-free shops

There are still individual tourists dropping by the duty free shops, but they too have declined, by between 20 and 30 percent.

Jeju’s Seongsan Sunrise Peak, a favourite among Chinese visitors and one of the most popular destinations on the island the island, is comparatively empty.

Rental cars and small buses occupy an area that used to be full of large tourist buses.

INTERVIEW
Bong Jae-chun / Merchant, Seongsan Sunrise Peak
I think it started March first. Sales have dropped by more than half since then.
<인터뷰: 봉재춘 성산일출봉 주변 상인>
"3월1일부터 그런 것 같아요. 그 이후부터 그전보다 매출이 반 이상 떨어졌어요"

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More domestic tourists coming to Jeju

Meanwhile, the island is enjoying an increased number of domestic tourists.

The weather is warming up, and it’s easier to book flights with less people vying for the same seats. As a result, local travel agencies are getting 20 to 30 percent more inquiries about trips.

Convention facilities, hotels, and travel agencies are all welcoming calls about company meetings.

However, as accommodations and restaurant that used to only deal with Chinese are jumping into the domestic tourism market, cutthroat competition is expected.

INTERVIEW
Kim Dae-hun / Jeju Provincial Tourism Association
If local businesses catering to Chinese travelers lower prices, the effects are instant and sales go up. However, this could lead to a loss of sales at businesses that specialize in domestic travelers.
<인터뷰:김대훈 道관광협회 국내여행업분과 간사>
"바로 업체에서 손님들을 끌 수 있는 것은 가격경쟁 밖에 없거든요. 그래서 기존 가격보다 파격적인 가격을 내세우면서 내국인들만 상대로 해오던 업체들이 피해를 볼 것으로 예상되고 있습니다."

[Reporter] Kim Minhoe
[Camera] Moon Ho-seong

The discrepancy between, and the effects of, the number of Chinese and domestic tourists is expected to become more significant as China’s ban on travel to Korea continues.

Kim Minhoe, KCTV