According to sources in the service industry in Korea, international tourists have canceled their reservations, although the number is small. While others are considering canceling their services if the situation worsens.
Seoul Mayor Oh Se-hoon said at a meeting with tourism officials last week that there are concerns that safety issues in Seoul could have a negative impact on tourism, with more tourists canceling their trips to Seoul or shortening their stays.
Hotel group Accor, which includes the Fairmont and Sofitel brands, recorded a "slight" fluctuation in cancellations since December 3, up about 5% compared to November.
Meanwhile, the Korea Tourism Startup Association said booking requests for the first half of 2025 have dropped sharply.
Some hotels have even had to cut prices and offer special deals to attract more guests, said an unnamed travel agency.
A plastic surgery clinic in Seoul's upscale Gangnam neighborhood also said some foreign patients had canceled visits since martial law was declared.
"We are not worried at the moment, but if this situation continues it will affect foreign tourists," a clinic representative said, declining to be named.
The latest political crisis threatens to do major damage to the country's brand, which has been boosted by South Korea's cultural wave and economic success, said Kim Wou-kyung, head of a government branding agency.
The “Korean Wave” – the global boom in Korean dramas, music and cosmetic technology – along with a reputation for a safe environment and global brands like Samsung, are important soft powers that the South Korean government uses to boost tourist numbers.
South Korea hopes to welcome 30 million international visitors annually by 2027, double the number in 2019.
Part of the strategy is to focus on attracting MICE tourists through events, conferences and exhibitions. MICE tourism could be affected if the political crisis continues into early next year, according to Ha Hong-kook, secretary-general of the Korea MICE Association.
In fact, daily life and tourism activities have continued as normal in South Korea, despite ongoing large-scale protests, since martial law was lifted on December 4. Analysts note that South Korea's checks and balances appear to be working well.
South Korea's travel and tourism industry, which is expected to generate 84.7 trillion won ($59.1 billion) by 2023, accounts for about 3.8 percent of GDP. The country's tourism industry has weathered previous headwinds, including the 2016 presidential impeachment and periodic tensions with North Korea.
The latest political crisis is a serious development that could hamper the recovery of the leisure and business travel industry, which was on track to fully recover visitor numbers, reaching 97% of pre-COVID-19 levels in October, according to Reuters.
