COVID-19 Impact Causes Hotel Industry Slump
Foreign Visitors to Myeongdong Plummet, Leading to Closures or Suspensions
Hotels Near Samseong Station Less Affected
Increase in Business Travelers and General Vacationers Visiting COEX Mall
[Asia Economy Reporter Seungjin Lee] The landscape of commercial districts in Seoul has changed due to the impact of the novel coronavirus infection (COVID-19), accelerating the shift in the hotel industry's focal point. Instead of Myeongdong, where foreign tourists have completely stopped visiting, Samseong Station, which attracts business travelers and domestic tourists, is emerging as the center of hotel competition.
According to the hotel industry on the 4th, the 'Grand InterContinental Seoul Parnas' located in Samseong-dong will reopen on December 1 after 11 months of remodeling. Once the Grand InterContinental reopens, a fierce competition among hotels such as 'Park Hyatt Seoul' centered around Samseong Station and 'Shilla Stay Samseong,' which opened last April, is expected.
Hotels near Samseong Station have a high proportion of domestic business travelers, so compared to Myeongdong, which was hit hard by COVID-19 due to the sharp decline in foreign tourists, the impact has been relatively less severe. Some hotels located in Myeongdong have seen occupancy rates plummet by 90%, leading to closures or temporary shutdowns. The Savoy Hotel, which has been a fixture in Myeongdong since 1957, has also been closed since September.
On the other hand, the area near Samseong Station is an international business district and a MICE (Meetings, Incentives, Conventions, and Exhibitions) tourism special zone, where business-related demand has continued steadily despite COVID-19. Additionally, domestic tourists, especially younger generations, are increasingly visiting nearby commercial areas including Starfield COEX Mall. In fact, since its opening in April, Shilla Stay Samseong has seen a monthly increase in occupancy rates, with a 20% rise in October compared to September. It is known that a high proportion of Shilla Stay Samseong guests are domestic tourists visiting COEX.
Junior Suite room at Grand InterContinental Seoul Parnas in Samseong-dong, Seoul. (Photo by InterContinental)
In response, hotels around Samseong Station have begun efforts to capture business-related demand and the growing younger generation market. The Grand InterContinental, having completed remodeling of the hotel exterior and all rooms from the 7th to 33rd floors, is enhancing its facilities and leisure options. All guests can enjoy discounts at Parnas Mall located on the hotel's basement level 1, as well as access to the indoor swimming pool and fitness center. Additionally, they are launching a 'Reopening Early Bird Promotion' at a special price, which includes two movie tickets to Megabox COEX, aiming to attract 'Hokangs (hotel + vacation)' demand.
Shilla Stay Samseong has newly introduced 'Comfort Leisure' rooms equipped with motion beds, 65-inch TVs, console game devices, and soundbars, allowing guests to enjoy comfortable rest along with various entertainment options. Furthermore, the 24-seat rooftop terrace on the 21st floor is reported to be very popular among younger customers.
The hotel industry expects that demand for hotels near Samseong Station will continue to increase even after COVID-19. A representative from a luxury hotel said, "Hotels near Samseong Station in Seoul are considered the least affected by COVID-19," adding, "The trend of foreign tourists shifting their visits from Myeongdong to Samseong-dong and Gangnam is ongoing, so once foreign tourist arrivals resume after COVID-19, the number of visitors to hotels near Samseong Station is expected to increase further."
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