CiR estimates that outbound South Korean traffic could grow by as much as +80% by 2027 at a compound annual growth rate of almost +7% per year. This increase would represent an absolute growth of over 17.5m departures versus 2017.

Intra regional Asia Pacific travel is the key market for outbound South Korean passengers, accounting for over 4 in 5 departures, although in terms of percentage increases the Americas and Europe are seeing bigger uplifts.

The South Korean Traveller, which offers an in-depth analysis of this passenger’s shopping and buyer behaviour, also indicates that South Korean travellers represent the seventh biggest spenders on tourism in the world at US$27bn.

Digging deeper into the CiR report, TRBusiness notes that on average, South Korean travellers arrive at the airport 1 hour 25 minutes before their flight and have almost an hour of free time in departures before boarding their flight.

DUTY FREE STORE VISITS

More pertinently, visiting duty free stores is the leading activity undertaken by South Koreans in departures, with almost half choosing to browse a store, with another 1 in 5 visiting a specialist retail store.

South Koreans spend on average half an hour browsing duty free, but other key activities South Koreans engage in include checking emails, going for a sit-down meal in a restaurant and drinking in a bar.

“Fifty-six percent of South Korean travellers visited a duty free or specialist store while in the airport terminal on their last trip, which is significantly higher than the global average (40%) and marginally higher than the average for APAC nationalities (51%),” says CiR.

While South Korea is heavily reliant on Chinese tourists – the Korean Tourism Organization estimates that they accounted for close to half of all international arrivals in 2016 – CiR points out that the market is also exposed to indigenous South Korean outbound travellers, in both downtown DF&TR stores and at airports.

“From an airport departures perspective the South Korean retail landscape is unique in that at Incheon airport – which accounts for almost 4 in 5 South Korean international departures – there are several operators competing for potential customers, including regional powerhouses such as Lotte and The Shilla, Shinsegae and Entas, as well as smaller enterprises,” adds CiR.

Lotte currently holds the lion’s share of outbound pax exposure, according to CiR data, with other retailers having lower, but similar exposure as each other.

Garry Stasiulevicuis, President of CiR, comments: “As South Korean operators take more notice of indigenous travellers, so too should DF&TR operators in other markets when South Koreans are travelling.

“Europe is seeing high growth at +13.5% and the Americas at +12.6%. Of course, Asia Pacific is where the vast majority of South Korean still travel, and Japan in particular has great opportunities to capitalise on the +26% year-on-year growth of Korean travellers there in 2017.

“The CiR South Korean Traveller report offers comprehensive insights about this key nationality, including identifying who the South Korean traveller is, how they behave, what they purchase and why. It also offers insight into purchase barriers, and covers both departures and arrivals shopping. We’re delighted to offer this complimentary report to all of our partners and everyone in the industry who wishes to understand more about this nationality”.

For further information, contact Stephen Hillam, Research Director [email protected].