Casino Stocks Surge as Foreign Tourists Rise and Earnings Improve

Lotte Tour Development Shares Surge Nearly 60% in Two Months
"Visa-Free Entry for Chinese Group Tourists in Second Half... A Key Momentum Factor"

Casino stocks are rising sharply. This trend is attributed to strong first-quarter earnings and an increase in foreign tourists, which are seen as positive factors. In particular, expectations for performance are growing further as visa-free entry for Chinese tourists is set to be allowed starting next month.

According to the Korea Exchange on June 9, Lotte Tour Development closed at 13,090 won on June 5. This represents a 59.25% increase compared to 8,220 won on April 1, 2025. During the same period, GKL and Paradise also rose by 32.53% and 20.9%, respectively.

The rise in casino stock prices has been driven by improved earnings. In the first quarter, Paradise recorded sales of 283.3 billion won and operating profit of 57.3 billion won, up 7% and 18.3% year-on-year, respectively. During the same period, GKL's sales and operating profit increased by 12.2% and 46.1%, respectively, while Lotte Tour Development also saw increases of 14.7% and 46.4%, showing an overall improvement trend.

The main factor behind the improved performance is the increase in tourist numbers. According to the Korea Tourism Organization, the number of inbound tourists to Korea in the first quarter of this year was 3.87 million, up 13.7% from the same period last year. This figure is 100.7% of the level seen in the same period of 2019, before the outbreak of COVID-19. Among them, Chinese visitors numbered 1.12 million, reaching 84% of the figure for the first quarter of 2019, before the pandemic.

Securities firms expect the number of Chinese tourists to continue rising in the second half of the year. This is because the government plans to temporarily allow visa-free entry for Chinese group tourists starting in the third quarter of this year.

Lee Hwanwook, a researcher at Yuanta Securities, stated, "In the case of Jeju Island, the visa-free benefit was already in effect, so it is difficult to interpret the upcoming visa-free entry policy as a fundamental benefit." However, he added, "The freer exchange between Korea and China will have a positive impact on the recovery of visitor numbers to Jeju Island, which has a geographical advantage over Macau."

As a result, expectations for improved performance this year are rising. According to FnGuide, securities firms forecast that Paradise's consolidated sales and operating profit for this year will reach 1.1391 trillion won and 162 billion won, up 6.25% and 19.06% year-on-year, respectively. GKL is expected to achieve sales of 449 billion won and operating profit of 66.6 billion won, representing improvements of 13.27% and 73.65% compared to last year. Lotte Tour Development is also expected to achieve sales of 565.2 billion won and operating profit of 86 billion won, up 19.88% and 860% year-on-year, respectively.

Lee Gihun, a researcher at Hana Securities, emphasized, "With first-quarter results rebounding sharply and the visa-free policy for Chinese group tourists set for the second half, this could be a period where both performance and valuation rise together."