Following Japan, Taiwan and Hong Kong Also Open to Tourists... Industry Becomes Busy

[Asia Economy Reporter Jeon Jinyoung] Asian countries such as Japan, Taiwan, and Hong Kong are loosening restrictions for tourists by allowing visa-free entry and independent travel. With growing expectations for the resumption of travel, sales of related products on home shopping and e-commerce platforms are also on the rise. The industry is targeting demand by increasing related broadcast programming.

According to the home shopping industry on the 24th, CJ OnStyle resumed broadcasting Japan travel package programs on its T-commerce channel on the 19th and 20th for the first time in about three years. The broadcast introduced a 2-night, 3-day package including stays at a Kyoto hot spring hotel and a hotel in central Osaka. Although it aired on weekday nights with relatively low viewership, orders worth about 2 billion KRW poured in. This exceeded the targeted sales by 10%. A CJ OnStyle official explained, "The Japanese government mentioned easing regulations before the broadcast, and since it was the first time selling this product in three years, the results were better than expected."

Other home shopping channels also posted strong performances. Hyundai Home Shopping, which sold Kyushu packages through its T-commerce channel on the 18th, saw orders and consultations more than double compared to their targets for that broadcast.

Image of Lotte Homeshopping's Japan travel product sales broadcast on the 28th of last month.

Lotte Home Shopping also sold a package combining Osaka, Kyoto, and Kyushu on the 28th of last month, recording 2,000 consultation cases during the broadcast. A Lotte Home Shopping official said, "Japan has a high demand for independent travel where air tickets and accommodations are booked separately, so package reservations are relatively low. However, having over 2,000 consultation cases for a package product resumed after three years is considered a satisfactory figure internally."

GS Shop recorded 1,700 consultation orders for Kyushu travel products on July 31, even before the relaxation of tourism conditions was announced. Despite airing late at night, it achieved good results. The Tokyo travel product broadcast at 1 a.m. on the 28th of last month sold about 600 units.

The four home shopping companies expect Japanese tourism demand to increase further and are preparing additional package sales broadcasts in October. With Taiwan and Hong Kong also easing restrictions, the industry is expected to become even busier. Taiwan will resume visa-free entry for countries including Korea and Japan starting on the 29th, and Hong Kong will abolish hotel quarantine regulations for arrivals, which had been in place for over two and a half years, starting on the 26th. The home shopping industry plans to resume sales of Taiwan and Hong Kong products, which had been absent for three years since COVID-19. An industry official stated, "With explosive growth in demand for Japan travel, we are also preparing Taiwan and Hong Kong travel-related products quickly."

Following home shopping, e-commerce platforms selling air tickets and packages are also experiencing a boom. Especially after the Japanese government announced specific plans to ease tourist regulations such as visa relaxations on the 13th, sales of package products and air tickets have noticeably increased. For example, 11st saw a 27% increase in sales of Japan travel package products from the 14th to the 20th compared to the previous week. Overseas air ticket category transaction volume increased more than fourfold (330%) over three weeks starting from the 31st of last month compared to the previous year. Gmarket’s sales of local Japan tour packages from the 1st to the 20th rose 34% compared to the previous month, and overseas air tickets jumped 136% during the same period, fueled by expectations for the resumption of tourism.

With the skies reopening in Asia including Japan, Taiwan, and Hong Kong, the industry is expected to enjoy favorable winds for the time being. An industry official said, "Asian countries are geographically close, so the travel burden on tourists is relatively low, making them popular. We expect demand to explode after the official resumption of tourism in October and are preparing various products accordingly."