As expected, China’s political spat with South Korea over a contentious missile defence system is making a serious dent in the latter’s tourism industry.
China imposed an unofficial tourism embargo, stopping Chinese tour groups from visiting and as a result South Korea said Chinese arrivals were down a whopping 40% in March.
China makes up nearly half of all inbound arrivals.
Arrivals from China plunged 39.4% last month year-on-year, South Korea’s ministry of culture, sports and tourism said.
A ministry official said sales from Chinese shoppers also fell 40% since mid-March after group tours were banned.
Arrivals from Japan also slowed after growing about 20% from February up to early April.
"There is a tendency for Japanese media to exaggerate the situation on the Korean peninsula, and Japanese travellers seem to be postponing their trips because they are concerned," the ministry official said.
China’s tourism ban could cost the country nearly $10 billion in lost revenues while the South Korean tourism industry frantically seeks out new markets, with ASEAN countries a major focus for promotions.
