[Click eStock] "Lotte Tourism Development, Signal of Korea-China Relations Recovery... Expectation for National Day Holiday in October"

On the 2nd, SK Securities expressed optimism about Lotte Tour Development, noting signs of a recovery in relations between Korea and China and anticipating a boost from the upcoming Chinese National Day holiday special in October.

Na Seung-du, a researcher at SK Securities, stated in a report that “In August, the number of foreign visitors to Jeju Island exceeded 200,000, setting a new monthly record since 2019,” and added, “The number of foreign visitors to Jeju Dream Tower Casino also reached a record high, and Lotte Tour Development’s casino revenue surpassed 33 billion KRW, marking the highest level since its opening.”

Researcher Na assessed that “With an estimated 180,000 foreign visitors to Jeju Island in September, the company’s casino revenue for September is expected to slightly decrease compared to August, but it has sufficiently built a solid foundation capable of generating monthly revenue exceeding 30 billion KRW.”

He predicted that October is likely to once again break the monthly performance record.

He explained, “First, following the Nankai Earthquake warning issued in mid-August in Japan, the growth rate of foreign tourists visiting Japan has slowed, leading to increased interest in Korea and neighboring Southeast Asian countries since September. In particular, a survey on travel preferences among Chinese tourists ahead of the October National Day holiday showed high interest in domestic travel followed by Korea (Jeju Island).”

He also noted, “Second, the timely warming of Korea-China relations is encouraging,” adding, “With the possibility of a Korea-China summit, originally planned for next year, being advanced to November this year, attempts to improve Korea-China relations are expected to continue.”

He further added, “This is expected to act as a continuous positive factor for the company’s performance improvement, along with the anticipation of the October National Day holiday special.”