South Korea’s foreigner-only casino sector is gaining momentum as inbound tourism rebounds. Chinese group travel is expected to provide an additional boost in the second half of the year. According to Shinhan Securities, stronger visitor arrivals are increasingly supporting casino performance across the country.
Chinese Visitor Recovery Drives Growth
Unlike other tourism sectors that depend partly on domestic spending, South Korea’s foreigner-only casinos rely almost entirely on overseas visitors. Moreover, Shinhan Securities said the pace of Chinese tourist arrivals will be the key factor shaping industry performance for the rest of the year.
Analyst Ji In-hae noted that rising inbound arrivals, foreign visitor spending, and improving casino earnings all confirm the ongoing recovery in international tourism. However, while all operators are expected to benefit, the strength of the rebound will depend on each property’s location and customer mix.
South Korea restricts casino gambling for local citizens, with Kangwon Land remaining the country’s only casino permitted to serve domestic players.
Group Travel Supports Casino Outlook
South Korea’s temporary visa-free programme for Chinese group tourists, introduced last September, has helped drive the recovery. Specifically, it has done so by stimulating tourism and regional economies.
Shinhan believes casino operators with strong exposure to Chinese visitors are well positioned for further growth. Busan, in particular, could emerge as one of the biggest beneficiaries if group travel continues to recover.
Major Operators Positioned for Recovery
Paradise Group operates Paradise City in Incheon and a foreigner-only casino in Busan. Therefore, it is expected to benefit from rising Chinese visitor numbers.
Lotte Tour Development is also expected to extend growth at Jeju Dream Tower. This will happen as recovering international flights, higher casino visitation, and stronger hotel occupancy drive its performance.
Meanwhile, Grand Korea Leisure operates foreigner-only casinos in Seoul and Busan. It is expected to benefit from both Chinese VIP customers and broader international tourism.
Tourism Data Points to Strong Rebound
According to the Korea Tourism Organisation, South Korea welcomed 2.56 million Chinese visitors between January and May. This represents a 25% year-on-year increase.
The recovery in Chinese tourism is strengthening the outlook for South Korea’s foreigner-only casinos. Additionally, operators that have strong exposure to international visitors are expected to be the biggest beneficiaries. This is the case as inbound travel continues to improve.
