South Korea’s foreigner-only casinos hit jackpot as Chinese tourists return
The casino industry, open only to foreigners, is betting on an expected surge in Chinese group travel in the second half to drive profits
Unlike other tourism segments that move with domestic consumption, casino performance is closely tied to inbound flows, making the pace of Chinese visitor growth the key variable for 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,” said Ji In-hae, an analyst at Shinhan.
South Korea’s casino industry is open only to foreign visitors as domestic gambling is tightly controlled under the law – Kangwon Land is the only casino open to locals.
Last September, the country launched a temporary visa-free programme for Chinese group tourists to revive inbound tourism and regional economies.
The brokerage expects earnings to improve across the board, but says the extent of recovery will vary by location, customer mix and whether operators run integrated resorts with hotels and entertainment facilities.