Korean Hotel Investment Outlook
Global interest to fuel recovery
March 22, 2022
- Minjoon Kim
While COVID-19 has led to a setback in the South Korea tourism sector, it has also proved its resiliency and enabled a “reset” which will poise the sector for a strong recovery. Further, the favourable supply and demand environment created by the reduction in supply through alternative-use conversion in 2020 and 2021, along with the recovery of international visitation and corporate travel is anticipated to fuel South Korea’s post COVID-19 recovery.
We identified five trends to drive the tourism recovery in South Korea:
- Diversification of source markets, as demand from Mainland China returns slowly
- Recovery led by luxury segment driven by leisure demand in the near term
- Seoul outpacing provincial markets’ recovery upon return of international visitation
- Favorable supply and demand environment
- Growing interest from domestic and international investors resulting in strong transaction market
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