Increase in Overseas Route Supply and Realization of Airfare Reduction Due to Falling Oil Prices
COVID-19 Testing Likely to Be Abolished After Chuseok, Raising Expectations for 'Overseas Golf'
Domestic Green Fees and Caddy Fees Rise, Affordable Southeast Asia Gains Popularity
[Asia Economy Reporter Byeon Seon-jin] Park, a man in his 40s and a heavy golf user, vowed to leave for overseas golf courses as soon as the "sky route" opens. Since the COVID-19 pandemic, booking domestic golf courses has become as difficult as "catching stars in the sky," and every time he goes out to the field, his green fees have increased by more than 100,000 KRW compared to before the pandemic.
Although Park’s long-awaited overseas travel resumed in March after more than two years, he gave up due to airfares more than doubling. Before the pandemic, a round-trip ticket from Korea to Los Angeles cost about 1 million KRW, but right after overseas travel became possible, it soared past 2 million KRW. However, with recent increases in overseas flight supply and falling oil prices, tickets can be purchased for 1.3 million KRW in September. Park said, "I am gathering members to go to LA golf courses. I heard that COVID-19 tests before entry will be eliminated after Chuseok. It seems playing golf will become easier from now on."
As the skyrocketing airfare prices have started to decline, expectations are rising that the era of "overseas golf travel" will officially begin. The government is set to abolish the COVID-19 test requirement before entry after Chuseok, further fueling anticipation.
High oil prices and mandatory pre-entry tests reduced demand for overseas golf courses, but... "Recent mood reversal"
Seo Bo-ik, who runs "Seorabeol Travel Agency" in Jung-gu, Daegu, lamented, "Due to the soaring ticket prices and mandatory COVID-19 tests before entry, it was difficult to even get 'one team' for overseas packages in August per week. Although the sky route opened, it felt like a dark period." In fact, Korean Air’s fuel surcharges in February ranged from 10,800 KRW to 79,200 KRW depending on distance.
However, after the Ukraine crisis in March, they surged to between 18,000 KRW and 138,000 KRW. In July and August, they peaked at between 42,900 KRW and 339,300 KRW. Additionally, among 38 OECD member countries, only Korea and Japan required COVID-19 tests before entry, dampening travel sentiment.
With monthly fuel surcharges dropping to between 35,000 KRW and 259,000 KRW and health authorities deciding to lift the mandatory COVID-19 tests before entry, more people are considering overseas golf travel. On the 29th, Jung, an employee at a travel agency in Jung-gu, Seoul, said, "Just this morning, there were four inquiries about Southeast Asian golf packages such as Vietnam and Taiwan. It seems the reason is that round-trip airfare prices have dropped, making September packages cheaper than August."
Despite high exchange rates... overseas golf travel is cheaper than domestic golf travel
During the COVID-19 era, Jeju Island golf was popular as a substitute for overseas golf. For a team of four going on a 3-night, 4-day golf trip to Jeju in September, the golf costs (green fees, caddy fees, cart fees) at public golf courses on weekends amount to 1.2 million KRW per round. Assuming two rounds and round-trip airfare (400,000 KRW), the total cost excluding accommodation is 2.8 million KRW.
On the other hand, if traveling to Da Nang, Vietnam, even considering the round-trip airfare three times higher than Jeju (1.2 million KRW), green fees, caddy fees, and cart fees can be covered with 150,000 KRW per person. Two rounds cost about 1.2 million KRW in total. Comparing airfare and golf costs alone, it is 400,000 KRW cheaper. The pool villa accommodation in Da Nang, which is 3 to 4 times larger than a 5-star hotel room in Jeju, is also 30-40% cheaper. A travel industry insider said, "Domestic golf course fees have become much more expensive compared to overseas, so even considering the high exchange rate, overseas golf travel is actually more affordable."
Domestic golf courses posted record operating profits of 30-40% last year... what about this year?
According to the "Leisure White Paper 2022" published by the Korea Leisure Industry Research Institute, domestic golf course green fees (as of May for public golf courses) increased by 29.3% compared to two years ago, and caddy fees also rose by 10.7%. Demand for golf travel to Japan, which recently lifted the mandatory COVID-19 test before entry, is increasing. Japan’s green fees are about one-third of Korea’s, and unlike Korea, it does not charge separate fees for caddies or carts. Thanks to the "yen depreciation effect," it can be enjoyed even more cheaply. Domestic golf courses, which posted record operating profits of 30-40% last year, are staying vigilant.
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