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South Korea
Market Overview
South Korea is New Zealand's sixth largest market in terms of visitor numbers and source of expenditure.
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In the year ended March 2008, South Korean visitors contributed NZ$249 million to New Zealand’s economy; the sixth largest spend from an individual country.
However, South Korean visitor arrivals to New Zealand have been declining in the past year as a result of a reduction in airline seats, increasing fuel surcharges, the sluggish economy and rising group package prices.
Outlook
The rapid growth rates of the past are unlikely to be repeated as this market reaches maturity. Long term, visitor arrivals are expected to decrease by 1.2 per cent annually between 2008 and 2014.
Economic conditions mean consumers are looking for cheaper travel options and dual-Australia/New Zealand packages. Some operators have recently dropped package prices, but reduced airline capacity, the global financial crisis, the weak Korean Won and shaken consumer confidence will not help the market rebuild in the short-term.
The number of enquiries from younger Fully Independent Travellers (FITs) is increasing and the industry is looking in this direction to develop the market in the future. FITs now account for 41 per cent of visitors from South Korea.
Korean Air will operate more capacity to Auckland over the peak summer months with a B747 replacing B777 equipment in the December 2008 to March 2009 period. This will give the route an extra 7,400 seats over the peak New Zealand summer demand period.
Fast Facts:
Visitor arrivals year to date
(Total Arrivals)
| 86,755 (YE Sep 2008) -19.6%
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Median length of stay
(Holiday Arrivals)
| 6 days (YE March 2008)
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Average expenditure per visit
(Holiday Arrivals)
| NZ $2,071 (YE March 2008)
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| Forecast growth in travel to New Zealand 2008-2014 average | -1.2% per annum
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| Population | 49,232,844 (July 2008 est.) |
Key regions/cities
| Seoul, Pusan
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Direct routes into New Zealand
| Seoul - Auckland
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Leave entitlement
| 10 days + 1 day per year of service up to 20 years
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| Currency | Korean Won (KRW)
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| Exchange rate |
NZ$1 = KRW 749 (2 Nov 2008) |
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GDP Growth | 4.5% for 2008
4.3% for 2009
(Oct 2008 est.)
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| Per capita GDP (PPP) | US$24,477 (2007 est.) | |
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