(Photo= Yonhap news)

[Alpha Biz= Reporter Paul Lee] In the first quarter of this year, the travel balance posted the largest deficit in five and a half years on a quarterly basis.

According to the Economic Statistics System of the Bank of Korea on the 19th, the travel balance (preliminary figures) recorded a deficit of $3.9 billion in the first quarter. This is the largest deficit since the third quarter of 2018 (-$4.17 billion), well before the outbreak of the COVID-19 pandemic. The service balance, which accounts for a significant portion of the travel balance, continued its negative trend for the 23rd consecutive month. While the current account surplus in the first quarter stood at $16.84 billion, the deficit in the service balance, including travel, significantly offset the surplus in the goods balance through exports.

According to the Ministry of Culture, Sports, and Tourism, the number of outbound travelers in the first quarter of this year reached 7.42 million, recovering to 94.4% of the level in the first quarter of 2019 (7.86 million). Foreign tourists visiting Korea in the first quarter totaled 3.4 million, which is 88.6% compared to the level five years ago.

Especially noteworthy is the difference in tourism spending between domestic and foreign visitors, which has exacerbated the deficit. The amount spent by domestic travelers overseas in the first quarter totaled $740 million, representing only a 7.2% decrease compared to the first quarter of 2019 ($802 million). Considering the number of outbound travelers, this suggests that Koreans spending money abroad for tourism purposes is similar to previous levels.

 

 

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