[Market Focus] Visa-Free Entry Expectations Drive Lotte Tour Development Up Over 7%

Lotte Tour Development's stock price is on the rise, reflecting both the growth in casino performance and expectations regarding the potential implementation of a visa-free entry policy for Chinese visitors to Korea.

As of 10:12 a.m. on August 4, Lotte Tour Development was trading at 18,200 won, up 1,290 won (7.63%) from the previous trading day.

On this day, Hanwha Investment & Securities maintained its "Buy" rating and target price of 24,000 won for Lotte Tour Development, stating that it continues to view the company as the top pick in the sector.

Park Sooyoung, a researcher at Hanwha Investment & Securities, said, "Lotte Tour Development's Dream Tower Casino recorded a drop amount of 274.2 billion won, net sales of 43.4 billion won, and 56,691 visitors last month, setting new monthly records for all indicators," adding, "With the summer peak season underway, the upward trend compared to the previous month is expected to continue through this month."

She continued, "September may be a relatively slow period, but if visa-free entry for Chinese visitors to Korea is fully implemented during this time, we can expect consistently strong performance indicators," and added, "We also have high expectations for October, which includes the National Day holiday period."

Additionally, Park noted, "'Traveling to Korea' is becoming a trend among Chinese tourists, and the number of Chinese visitors to Jeju Island is expected to show a steady increase," and said, "Given that 'traveling like a local' has become a recent trend, it is highly likely that demand will spread beyond Seoul to major tourist destinations popular among domestic travelers."