Tourists enjoy their visit along Nuwemoru Street in Yeon-dong, Jeju. [Newsis]
Tourists enjoy their visit along Nuwemoru Street in Yeon-dong, Jeju. [Newsis]

Even as tourist arrivals to Jeju Island decline, the spending power of the Yeon-dong commercial district in Jeju has stood out. The average transaction amount per person in Yeon-dong reached 101,000 won ($71), more than 30 percent above the Jeju-wide average. Analysts attribute the trend to the district's mix of hotels, duty-free shops and casinos alongside public institutions, financial firms and major hospitals — a structure that draws both tourism and business demand at once.

According to the "2026 KB Commercial District Vitality Insights" report released by KB Financial Group on Monday, average per-person spending in Yeon-dong stood at 101,000 won, 32.9 percent higher than the Jeju-wide average of 76,000 won. The district's commercial profitability index also came in at 47.2, outpacing the Jeju average of 31.9 by 15.3 points.

Yeon-dong's spending resilience is notable given that overall Jeju tourism has been softening. Preliminary data from the Jeju Tourism Association showed that visitor arrivals from July 1 through July 22 totaled 818,141 — down 4 percent from the same period a year earlier. Domestic visitors fell 5.4 percent to 632,119, while foreign visitors edged up 1.2 percent to 186,022.

Yeon-dong's commercial structure lets it absorb demand not only from tourists but also from foreign visitors and business travelers, thanks to a concentration of hotels, upscale residential facilities, duty-free shops and casinos. Its proximity to Jeju Airport, combined with the presence of the Jeju provincial government, the provincial education office, financial institutions and large hospitals, generates tourism, administrative and business foot traffic simultaneously. KB Financial Group said this structural advantage underpins the district's sustained premium spending.

Similar patterns emerged in other regional commercial hubs. Busan's Seomyeon district was identified as a market supported by repeat local spending, combining the Jeonpo Cafe Street with offices, department stores, hotels and medical facilities. Daegu's Dongseongno recorded a public-transit foot-traffic index of 19.3 — roughly three times the Daegu-wide average — driven largely by a young demographic.

Jeonju's Gaekridangil and the area around Yeosu's marine park were also cited as examples of districts that successfully channeled nearby attractions — a hanok village and nighttime tourism content, respectively — into commercial spending. Content capable of drawing visitors from inside and outside the region and extending their stay has been a key driver of commercial district growth, the report found.

Across provincial commercial districts as a whole, however, conditions remain difficult. As of March this year, the average monthly foot traffic per store in regional areas stood at 31.6 visitors — about 27 percent of Seoul's 116.6. Average monthly sales per store in regional areas were 17.51 million won, just 35.8 percent of Seoul's 48.9 million won.

Drawing on the growth seen in regional hub districts, KB Financial Group recommended "the pursuit of a locally rooted startup support program that grafts innovative business models onto commercial districts and creates new value, in order to establish a virtuous cycle for those districts."


rim@heraldcorp.com