Aircraft are parked at an apron in Incheon International Airport in this 2022 file photo. Yonhap

The nation's top three low-cost carriers (LCC) — T'way Air, Jeju Air and Jin Air — are expected to benefit the most from the Chinese government's decision to allow Korean tourists' vise-free entry into Asia's largest economy, according to analysts and industry officials, Tuesday.

Unlike major carriers such as Korean Air and Asiana Airlines, LCCs rely heavily on short-haul routes to destinations such as Japan and other Southeast Asian countries for their revenue.

The no-visa entry policy is considered one of the most critical factors pulling up demand for tourism, as evidenced by a surge in the number of tourists to Japan after the country took a similar measure in October 2022.

According to data from the Korea Trade-Investment Promotion Agency, Korea topped the list in the number of tourists who visited Japan in 2023. The figure came in at 6.95 million, up 25.6 percent, compared with that in 2019.

Meanwhile, data from the Ministry of Land, Infrastructure and Transport showed that the number of passengers from Korea to China had yet to return to prepandemic levels. The figure reached 10.3 million between January and September, accounting for merely 75 percent from the same period in 2019.

"The number of Korean tourists to China set a historic high in 2016 despite the visa-related handicap, but has since turned into negative growth due to then-escalating political risk on the proposed deployment of an American antimissile system in Korea," Lim Soo-jin, an analyst at Daishin Securities, said.

"But the introduction of the visa-free policy comes with significance, as it reflects China's willingness to improve ties with Korea. The number of local tourists to China is expected to grow from a mid- to long-term viewpoint in light of the amicable bilateral relations."

According to China's Foreign Ministry, Korean tourists can stay in China for up to 15 days without a visa, starting Nov. 8.

Aviation industry officials are also painting a rosy outlook on the potential rebound in tour demand to China.

"LCCs will particularly become the biggest beneficiaries from the visa-free entry to China, as demand to the route has not recovered, so there stands an ample likelihood for LCCs to absorb possibly growing passenger demand to China," an aviation industry official said.

According to data from Korea Investment & Securities, LCCs' annual sales are forecast to rise by up to 10 percent in a couple of years under the scenario that demand for travel to China recovers to half of that to Japan.

Shares of the aforementioned major LCCs closed with solid gains on Monday when the decision on visa-free entry to China was announced. Shares of Jin Air closed with the largest gain of 5.44 percent among listed LCCs. Jeju Air shares also closed up 5.13 percent during the same period.