A man passes by protestors in Gwanghwamun Square, Seoul, Wednesday, against President Yoon Suk Yeol's declaration of martial law the day before. Yonhap
Korea's tourism industry is facing increasing concerns over escalating political and social turmoil following the failure of the motion to impeach President Yoon Suk Yeol over his brief declaration of emergency martial law, according to industry officials, Monday.
"Some foreign guests have canceled their reservations for three to four days right after the martial law incident," said an employee at a Seoul hotel near Gwanghwamun Square. "Reservations at food and beverage establishments decreased slightly due to massive protests over the weekend. Customers also seem to be concerned about traffic congestion," the employee said.
A PR official at a luxury hotel in Yeouido also said, "There are quite a few calls from foreign guests, perhaps due to the travel warnings to Korea issued by their embassies here." The official said "There were some cases that led to actual cancellations, but we don't think it's very significant."
The British Foreign Ministry issued a travel warning to its citizens to avoid nearby areas as protests were expected around Gwanghwamun and the presidential office in central Seoul, and the National Assembly in Yeouido.
The U.S. and Canadian governments also advised their nationals to avoid protest areas and pay attention to large crowds.
In the case of New Zealand, the travel warning for Korea has been raised from level 1 (normal) to level 2 (cautious), and neighboring Japan has also issued a travel warning to its people.
As the National Assembly's vote on the impeachment motion failed on Saturday, uncertainties have mounted. Opposition parties, including the Democratic Party of Korea, are expected to hold an extraordinary session of the National Assembly soon to reintroduce an impeachment motion, which is likely to trigger a series of large rallies in Yeouido and Gwanghwamun.
As political uncertainty grows, the Ministry of Culture, Sports and Tourism's goal of attaining 20 million inbound tourists this year is also at risk.
In fact, the number of tourists visiting Korea dropped sharply at the end of 2016 and the first half of 2017, when large-scale candlelight vigils calling for President Park Geun-hye's impeachment were held nationwide.
The number of foreign tourists visiting Korea, which had been on the rise to surpass 17 million in 2016, dropped to 13 million in 2017. Amid a continued decline in Chinese tourists due to the deployment of THAAD anti-missile batteries at that time, large-scale urban rallies such as the massive candlelight vigils and chaotic atmosphere seem to have negatively affected tourism in Korea.
Conservative civic groups hold a rally against the impeachment of President Yoon Suk Yeol in Gwanghwamun Square, Seoul, Saturday. Yonhap
Among them, the number of Chinese tourists visiting Korea is expected to drop sharply in the first quarter of next year due to ongoing social unrest.
According to a Bloomberg Intelligence (BI) analysis report, 830,000 Chinese tourists will visit Korea in the first quarter of next year, down 19 percent from the same period of 2024.
The report explained that tourists will postpone their visits to Korea due to concerns about social unrest, and such jitters could last until the Lunar New Year holiday next year.
However, it is predicted that the number of Chinese tourists visiting Korea could increase from the second quarter of next year, driven by promotional campaigns and the depreciation of the won against the yuan.
Major hotels and travel agencies in Seoul have already experienced reservation cancellations and travel inquiries since the martial law crisis, particularly regarding group tours for foreign visitors.
About 10 reservations at a luxury hotel in Seoul were canceled immediately after martial law was declared, and around 5 percent of the year-end banquet schedule was also canceled. It has been confirmed that a Japanese school trip group and a group of Saudi Arabian princes have also withdrawn their plans to visit Korea.
In Thailand, some currency exchange offices have reportedly put up notices saying they do not accept Korean won due to the "political situation."
In response, the government announced the activation of an emergency response system for the tourism industry, which had been recovering since the COVID-19 pandemic.
An emergency response team has been formed to take measures to cancel reservations and solve diplomatic problems, and various measures are being taken to minimize damage to the foreign exchange market and the tourism industry.
The Ministry of Culture, Sports and Tourism held the "Korea-Japan Tourism Business Forum," Monday, to discuss ways to expand tourism exchanges between the two countries, while emphasizing that there is no safety risk for foreign tourists to visit Korea.
Before the forum, Deputy Minister of Culture, Sports and Tourism Jang Mi-ran held a luncheon with Naoya Haraikawa, the commissioner of the Japan Tourism Agency under Japan's Ministry of Land, Infrastructure and Transport. Haraikawa, who attended the forum, emphasized that the environment for visiting Korea is stable and called for the interest and cooperation of the Japanese authorities to further expand tourism exchanges between the two countries.