Most Overseas Travel Packages Canceled Due to New Variant Spread
Duty-Free Shops Hit by Delta Variant in July Expected Vaccine Effects from September
Restaurants Reviving with With-Corona Face Year-End Party Sales Concerns
As the new COVID-19 variant 'Omicron variant' spreads overseas and the government decides to postpone the phased easing of social distancing measures (With Corona Phase 2), concerns are growing among duty-free shops and travel industries that had hoped for a year-end boom.
Duty-Free Shops 'On Alert Again' Due to New Variant
On the 30th, the duty-free industry, which had been expanding marketing targeting domestic and foreign travelers in preparation for increased travel demand, is anxiously watching the Omicron variable.
According to the Korea Duty Free Shop Association, domestic duty-free sales fell to 1.1687 trillion won in February but gradually rose to recover to the 1.5 trillion won level. However, with the continued spread of the Delta variant in June and July, sales dropped back to around 1.3 trillion won. In September, when the vaccine effect became fully effective, sales rose to 1.7657 trillion won, raising expectations for monthly sales to recover to the 2 trillion won level by year-end, but now there are concerns about a decline in sales again.
A duty-free shop official said, "From mid-this month, small group travelers started entering the country again, raising expectations, but depending on the scope of Omicron's impact, there are concerns that even this may be cut off again," adding, "We are still monitoring whether 3 to 4 groups of about 10 tourists from Singapore and Hong Kong, scheduled to arrive by mid-next month, will enter as planned."
The travel industry is also on high alert. As the Omicron variant spreads rapidly in Europe, most overseas travel products scheduled to depart next month are being canceled. A home shopping industry official explained, "This fall, riding the With Corona atmosphere, European and Eastern European package tours were very popular, but most have been canceled," adding, "For travel products to other Asian regions or those departing next year, if customers wish, we plan to offer refunds or reschedule."
The hotel industry is also closely monitoring the situation. Due to the impact of revenge consumption following phased social recovery and the increase in year-end parties and family gatherings, most weekend and holiday reservations have been booked, so the concern about sales impact is somewhat avoided. A hotel industry official said, "With domestic demand surging during the year-end and New Year holidays, there have been no cancellations of room and restaurant reservations yet, but we are worried whether government-level quarantine measures will be strengthened and whether restrictions on the number of people, like during the 2nd and 3rd waves, will be imposed."
Restaurant Sector: "We Haven't Recovered Yet"
Self-employed business owners such as restaurants, who had hoped for a year-end peak, are worried about being hit again just a month after With Corona started. Jang Hyung-seop, who runs a meat restaurant in Yonggang-dong, Mapo-gu, Seoul, said, "After With Corona, lunch customers and group customers increased with the start of work, but as the number of confirmed cases in Seoul exceeded 1,000 per day, sales are decreasing again," adding, "There have been no requests to cancel year-end party reservations yet, but if the spread continues, we cannot help but worry about sales decline."
Earlier, as the Delta variant virus spread in July, the dining industry business index for the third quarter fell by 4.12 points from the second quarter to 65.72. Due to restrictions on private gatherings until September, the actual business index showed a significant difference from the initially expected recovery in the third quarter.
Similarly, the department store industry, which had experienced store closures due to a surge in confirmed cases this summer, is strengthening its own quarantine and employee personal hygiene management in response to news of the overseas spread of Omicron. A department store official said, "Since With Corona started this month, revenge consumption of luxury goods and sales of fashion and cosmetics have greatly increased, and there has been no significant impact on the number of visitors during the ongoing winter regular sale," adding, "However, we are making every effort to prevent situations such as store closures due to confirmed cases, as during the previous COVID-19 pandemic."
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