Korean brokerage Yuanta Securities Korea has strengthened its outlook on Lotte Tour Development, saying the operator of Jeju Dream Tower is poised for continued earnings growth as Chinese tourism rebounds and the company’s market share expands sharply.
The brokerage said on December 8th that Lotte Tour Development is clearly benefiting from improving regional travel dynamics and stronger demand in Jeju’s foreigner-only casino sector.
Citing data reported by local outlet Chosun Biz, analyst Lee Hwan-uk noted that Chinese arrivals to Jeju in the third quarter recovered to 51.3 percent of 2016 levels—before the THAAD dispute disrupted travel flows—while flight frequency between Jeju and China has returned to 84.7 percent. He said improving China–Korea relations and shifting outbound travel patterns are likely to support a solid rebound next year.
It is also noteworthy that Beijing’s sharp reduction in flights to Japan amid ongoing geopolitical tensions has redirected tourists toward alternative destinations, including South Korea. Thailand, another major destination for Chinese travelers, is meanwhile facing headwinds following a nationwide backlash triggered by the kidnapping scandal involving a Chinese actor, as well as concerns from Beijing over Bangkok’s earlier push to legalize gambling.
Lotte Tour Development’s casino business has continued to outperform. Third-quarter net revenue rose 65.4 percent year-on-year to KRW139.3 billion, supported by strong demand at Dream Tower. Visitor numbers increased 60.7 percent to 172,783, while total drop—the amount exchanged for gaming chips—grew 78.4 percent to KRW848.5 billion. Drop per person reached KRW49 million, underscoring the strength of premium play.
Yuanta said Dream Tower’s rising brand recognition is helping the operator consolidate its leadership position in Jeju’s casino market. Market share expanded from 69.6 percent at the end of 2024 to 79 percent by October 2025. Visitor growth in October and November—55.9 percent and 41.3 percent, respectively—continued to exceed expectations, suggesting momentum will carry through the fourth quarter.
Lee added that Lotte Tour Development is well positioned for sustained medium- to long-term improvement, supported by capacity to open more baccarat tables, nearly 1,600 hotel rooms, and continued growth in betting activity. The analysts said conditions across operations appear favorable for further upside growth.
