Korea’s foreigner-only casinos are gaining momentum as inbound tourism recovers and Chinese group travel is expected to accelerate during the second half of the year, The Korea Times reported, citing an analysis by Shinhan Securities.
Chinese visitor arrivals reached about 2.56 million between January and May, up roughly 25 percent from the same period last year, according to Korea Tourism Organization data cited in the report.
Shinhan said casino performance is more closely linked to inbound visitor flows than other tourism segments, which tend to move with domestic consumption. The pace of Chinese tourism growth will therefore be a key factor for casino operators during the remainder of the year.
“Inbound indicators such as arrivals, foreign spending and foreigner-only casino earnings are now numerically confirming what the market is feeling as an inbound boom,” Shinhan analyst Ji In-hae said.
Korea introduced a temporary visa-free program for Chinese group tourists last September to support inbound tourism and regional economies. Most casinos in the country are restricted to foreign customers, while Kangwon Land is the only casino permitted to serve Korean nationals.
Shinhan expects earnings to improve across the sector, although the pace of recovery will vary by location, customer mix and operators’ exposure to hotels and entertainment facilities.
Paradise Co., Lotte Tour Development and Grand Korea Leisure (GKL) were identified as potential beneficiaries of recovering Chinese and international demand.
Ji said Korea’s casinos retained their “full China-facing positioning,” adding that Busan could benefit most from visa-free group travel if the recovery continues.
