Incheon International Airport Terminal 1 Departure Hall with a Sparse Atmosphere / Photo by Honam Moon munonam@
[Asia Economy Reporter Kim Heung-soon] Amid the impact of the novel coronavirus infection (COVID-19), domestic companies in the culture, sports, and tourism sectors have suffered significant damage, with the tourism industry experiencing particularly pronounced stagnation.
According to the '2020 Q1 Culture, Sports, and Tourism Trend Survey' recently released by the Korea Culture and Tourism Institute, the 'Business Survey Index (BSI)' for culture, sports, and tourism in the first quarter was 49.2, down 38.7 points from 87.9 in the fourth quarter of last year. The BSI reflects the perceived business conditions of related companies.
The 'Consumer Sentiment Index (CSI),' which quantifies consumer spending outlook in the culture, sports, and tourism industries, also dropped 11.2 points from 98.5 in the previous quarter to 87.3. This is the lowest figure since the related statistical survey began in 2013.
The Korea Culture and Tourism Institute analyzed, "The spread of COVID-19 led to the World Health Organization's (WHO) declaration of a pandemic and social distancing campaigns, which contracted consumer spending, directly impacting business revenues and profitability."
The tourism industry's BSI in the first quarter fell by 57.3 points from 88.6 in the previous quarter to 31.3, marking the largest decline among the four industries including the cultural industry (39.1 points), cultural arts industry (34.3 points), and sports industry (39.2 points).
Within the tourism industry, the BSI for 'Travel Agencies and Tourism Transportation' dropped 62.1 points from the previous quarter to 17.7, the lowest level, while 'Tourism Shopping' fell 63.6 points to 29.9, showing the largest decline. This is attributed to direct impacts on these sectors due to entry bans and restrictions imposed by countries amid COVID-19.
According to the Korea Tourism Organization, the number of inbound foreign tourists in the first quarter was 2,041,417, a 46.9% decrease compared to 3,842,246 in the same period last year. This figure reflects data before the full-scale spread of COVID-19, as in March this year, inbound foreign tourists numbered only 83,497, a 94.6% decrease compared to 1,535,641 in the same period last year. In the same month, the number of Korean nationals traveling abroad was 143,366, down 93.9% from 2,334,153 in the same month last year.
The Korea Culture and Tourism Institute forecasts that the downturn in the culture, sports, and tourism sectors and the decrease in consumer spending will continue into the second quarter. However, 'online cultural activity expenses' in the first quarter rose 2.4 points from the previous quarter to 103.8, contrasting with a 32.2-point decrease in 'offline cultural activity expenses.'
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