Vacancy Rate Once Exceeded 50%
Signs of Recent Commercial District Recovery Emerging
"Since many foreign customers have been coming, sales have definitely increased compared to the COVID-19 period."
With the easing of COVID-19 quarantine measures, the skies have reopened. On January 5th, the streets of Myeongdong in Jung-gu, Seoul, were once again filled with tourists from around the world.
The journey to regain the status of the 'K-Beauty Mecca' is also underway. Myeongdong is one of the commercial districts hit hardest by COVID-19. Like Itaewon and Hongdae, Myeongdong heavily depends on foreign tourists. However, due to the prolonged impact of COVID-19, the number of tourists sharply declined, causing many shops to close. At one point, the vacancy rate of small stores in the Myeongdong area soared to as high as 50%, meaning one out of every two stores had shut down.
Myeongdong, hit hard by COVID-19, shows signs of commercial recovery
On the morning of the 5th, citizens strolling the streets of Myeongdong, Jung-gu, Seoul. Photo by Heo Midam damdam@
On this day, cosmetic stores were busy welcoming both domestic and foreign customers. Some employees were filling display stands in front of the stores with products and checking their arrangement, while some shops had staff actively engaging in sales activities outside.
Yu (49), an employee at a cosmetics store, said, "Foreign customers tend to buy almost every type of cosmetic product when they visit, so they make up a large part of our sales. Recently, many have come from Southeast Asia and the United States, and this week, during the New Year's holiday, most tourists were from Japan." He added, "I think more tourists will come this year, and I hope sales will recover."
Lee, in his 30s, who has been working part-time at a road shop for two months, said, "According to the store manager, there are definitely more customers now compared to during COVID-19. I heard many nearby cosmetic stores closed during that time." He continued, "Maybe because of the cold weather, there seem to be fewer customers than two months ago, but I think the number will increase again when the weather warms up."
Regaining the status of the 'K-Beauty Mecca'
On the 5th, a customer visiting the Olive Young store in Myeongdong is selecting products. Photo by Heo Midam damdam@
According to the Seoul Tourism Foundation, from January to November last year, 492,767 foreigners visited the Seoul Tourism Information Center, more than eight times the number from the same period the previous year.
The place with the highest proportion of foreign visitors was the 'Myeongdong Tourism Information Center,' which saw a total of 12,801 foreign visitors. Including domestic visitors, the total number of visitors was 15,747, with 81% being foreigners. In the same period the previous year, the foreign visitor ratio at the Myeongdong Tourism Information Center was only 30%.
Strengthened quarantine for arrivals from China... Disappointment over absence of big spenders
However, the absence of Chinese tourists who used to fill their shopping bags with K-Beauty products is regrettable. Since enhanced quarantine measures for all arrivals from China have been in effect since the 2nd, it is difficult to expect shopping from these 'big spenders' for the time being. In fact, cosmetics and airline stocks, considered 'beneficiaries of China,' are showing weakness.
Go (26), an employee at B Beauty Shop in Myeongdong, said, "We open at 10 a.m., and within less than an hour, many foreign customers buy sheet masks and other products," but "We still have to say that there are almost no Chinese customers."
Meanwhile, as the Myeongdong commercial district gradually recovers, the beauty industry has begun reopening operations in Myeongdong. Cosmetic brand Nature Republic resumed operations at two locations in Myeongdong?the Myeongdong UNESCO branch and the Myeongdong Chungmuro branch?from June last year. Nature Republic had suspended store operations for about a year and a half due to the sharp decline in tourists caused by COVID-19.
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