High fuel costs, weak won drive tourists to domestic resorts — and rooms are filling fast

Kensington Hotel Seorak, located at the entrance to Seoraksan National Park [Provided by Eland Park]

Soaring fuel costs, a weak won and rising prices are pushing more South Koreans to choose domestic destinations over overseas travel this summer, making reservations at regional hotels and resorts increasingly hard to come by during the peak season.

Industry sources said Tuesday that an unusual trend has emerged at Kensington Hotel & Resort, operated by Eland Park: hotel rooms are filling faster than resort units — a reversal of the normal pattern. The company runs five hotels and 13 resorts in South Korea, with its resort business centered on pre-sale membership holders. Historically, resort bookings sold out first during the summer peak.

"Resort reservations only open up to three months in advance, while hotels run on a 12-month rolling basis," a company official said. "As domestic travel demand has expanded to smaller regional cities, resort members who are worried about not getting their preferred dates are now booking hotels first."

The numbers bear that out. Average August reservation rates at major Kensington Hotel & Resort properties have reached as high as 95%. Kensington Hotel Seorak is filling more than 10% faster than the same period last year, with an average August booking rate of 80%. Kent Hotel Gwangalli by Kensington, situated directly on the waterfront in Busan's Gwangalli Beach area, is running more than 35% ahead of last year's pace, with an average August booking rate above 83%.

Kensington Resort Seorak Beach is also averaging above 85% for August, with full occupancy expected through Aug. 16. Kensington Resort Seorak Valley is averaging 95% through Aug. 16. Kensington Resort Jeju Jungmun is similarly above 85% for August overall and is effectively sold out through Aug. 16 at 95%.

The Montreux Forest Train operating at Kensington Resort Seorak Valley [Provided by Eland Park]

Hanwha Resort is also running near full capacity on weekends from late July through mid-August. Even on weekdays, popular destinations such as Geoje, Seorak and Haeundae are almost fully booked. "As overseas travel costs have risen, people are turning to domestic options," a Hanwha official said. "Even the rooms that become available after resort members are not selected in the lottery are snapping up immediately."

Industry officials agree that the surge reflects both a rise in domestic travel demand among South Koreans — driven by high oil prices and a weak won — and a steady increase in foreign tourists. Visitors from abroad have recently been venturing beyond Seoul to destinations including Busan, Gyeongju and Gangwon Province.

According to the Korea Tourism Organization, foreign visitors to South Korea from January through June totaled about 10.71 million, up 21.3% from the same period last year and representing a 126.9% recovery from the pre-COVID level of 2019. By contrast, South Koreans traveling abroad over the same period totaled about 14.96 million — just 99.7% of the 2019 level. Foreign tourist arrivals in Busan in June jumped 70.8% year-on-year to about 2.06 million. Over the same period, Gyeongju saw a 21.7% increase in foreign visitors and Gangwon Province a 26.2% rise.

"As overseas travel demand has softened recently, more customers are turning to domestic hotels and resorts," an industry official said. "Occupancy rates above 90% will likely continue at least through the summer peak season."

An aerial view of Hanwha Resort Haeundae [Provided by Hanwha Resort]

spa@heraldcorp.com