[Click eStock] "Lotte Tour Development Finally Resumes Jeju-China Route on the 26th"

On the 15th, SK Securities analyzed that Lotte Tour Development is expected to resume flights on the Jeju~Shanghai route starting from the 26th, indicating that the time for Chinese casino VIP customers to freely visit Jeju casinos is not far off. The target stock price was set at 25,000 KRW.

Na Seung-du, a researcher at SK Securities, stated in a report on the same day, “Lotte Tour Development's sales last year were 183.7 billion KRW, a 72% increase compared to the same period the previous year,” and added, “Although the reduction in operating losses was not significant due to the expansion of personnel and facilities in preparation for the reopening and increased overseas demand, attention should be paid to the significant growth in sales.”

He continued, “Considering that Jeju Dream Tower was opened in December 2020, when COVID-19 case fluctuations were high, and the foreigner-only casino was opened in June 2021, an environment that allows for accelerated growth is finally being established.”

In particular, it is analyzed that the opening of air routes is expected to increase casino customers. He explained, “Since the visa-free entry to Jeju Island was resumed in June last year, the number of foreign tourists visiting Jeju has more than doubled,” and added, “International flights operating at Jeju International Airport include routes to Singapore, Bangkok, Osaka, Taipei, and Xi’an, and the Jeju~Shanghai route is scheduled to resume flights from the 26th.”

He stated, “The average number of foreign visitors to Jeju this year is about 15,000 per month, and considering that the monthly average number of foreign visitors before COVID-19 exceeded 100,000, there is still a long way to go,” and noted, “The number of visitors to the foreigner-only casino at Jeju Dream Tower is estimated to be about 9,000 per month this year.”

He added, “This shows that the demand for casinos among foreigners visiting Jeju is very high,” and forecasted, “The time for Chinese group tourists as well as Chinese/Hong Kong casino VIP customers to freely visit Jeju casinos is near.”