69.3% Hold Negative Expectations for Holiday Sales Boost
Negative Sentiment Especially High in Accommodation Sector
More Travelers Choose Overseas Destinations, Hurting Local Businesses
Despite the upcoming Lunar New Year holiday, which lasts up to nine days, domestic small business owners show low expectations for holiday-related sales boosts. In particular, as more people travel abroad, the domestic accommodation industry is unable to smile even in the face of the golden holiday season.
Travelers visiting Incheon International Airport Terminal 1 on the 24th, ahead of the Lunar New Year holiday including the temporary public holiday, are lining up to get their tickets. Incheon International Airport Corporation announced that during the special traffic control period for the Lunar New Year holiday, from the 24th to the 2nd of next month, a total of 2,141,000 passengers, averaging 214,000 per day, are expected to use Incheon Airport. Photo by Kang Jin-hyung
According to the small business sector on the 24th, many small business owners view this Lunar New Year holiday sales boost negatively. According to the ‘2025 Small Business Owners New Year Management Survey Report’ recently conducted by the Small Business Federation, the highest percentage of respondents (34.7%) answered ‘somewhat negative’ when asked how much they expected holiday sales boosts. This was followed by ‘very negative’ (34.6%), ‘neutral’ (25.1%), ‘somewhat positive’ (4.2%), and ‘very positive’ (1.5%). Negative responses accounted for 7 out of 10 respondents.
By industry, negative responses were particularly prominent in the accommodation sector. Among accommodation workers, 61.9% responded ‘very negative’ regarding the Lunar New Year holiday sales boost, the highest among nine industries. This was followed by ‘somewhat negative’ (19.1%) and ‘neutral’ (19.1%), with no respondents answering ‘very positive’ or ‘somewhat positive.’ A representative from the Small Business Federation said, "Due to the economic downturn, the proportion of those expecting holiday sales boosts is low across all industries, including accommodation, manufacturing, food and beverage, and service sectors."
This survey was conducted online by the Small Business Federation from the 15th to the 19th, targeting a total of 1,024 general small business owners nationwide engaged in wholesale and retail, personal services, and other sectors.
On the ground, complaints have emerged that the long holiday has actually become a negative factor for small business owners by increasing demand for overseas travel. The perception that ‘overseas travel is better than domestic travel’ has spread due to high inflation, significantly increasing overseas travel demand. According to data received by the National Assembly’s Land, Infrastructure and Transport Committee from Incheon International Airport Corporation and Korea Airports Corporation, a total of 1.34 million people will depart from Korea to overseas destinations over the 10 days from today until the 2nd of next month, with the average daily number of departing passengers increasing by nearly 14% compared to last year.
Han (56), who runs a guesthouse in Gangneung, Gangwon-do, said, "My son and daughter-in-law are also going to Australia during this holiday, and I guess others are doing the same," adding, "No matter how bad the economy is, reservations were always more than half full on Saturdays, but this weekend, it was less than half." Kang (32), who operates a motel in Gapyeong, Gyeonggi-do, said, "In winter, warm countries like those in Southeast Asia are good for vacations and have low prices, so I think many people will choose to go there," adding, "For domestic accommodation, weekend reservation rates, which allow for short trips, are much higher than for long holidays."
Industry insiders appealed for government-level stimulus measures to overcome this year’s business difficulties. Kim Jin-woo, Secretary General of the Korea Accommodation Industry Association, said, "Many small business owners are struggling with operations due to weakened consumer sentiment caused by the economic downturn," adding, "There is a need for alternatives to stimulate consumption, such as issuing government accommodation coupons not through platforms but directly to local governments or accommodation businesses, and expanding the issuance of local gift certificates."
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