[Market Feature] Lotte Tour Development Surges Over 10% on Hopes of Benefit from China-Japan Tensions

On November 17, Lotte Tour Development saw a strong performance in early trading. Expectations for increased tourism demand are rising due to tensions between China and Japan.

As of 9:55 a.m. on this day, Lotte Tour Development was trading at 20,150 won, up 1,860 won (10.17%) from the previous trading day.

This is attributed to growing expectations of benefits for the company after China advised its citizens to refrain from visiting Japan.

Recently, relations between China and Japan have rapidly deteriorated. This was triggered by Japanese Prime Minister Sanae Takaichi's remarks about "intervening in Taiwan in case of emergency." In response, China has even advised its citizens to refrain from visiting Japan.

On this day, China's Ministry of Culture and Tourism issued a statement, saying, "We strongly advise Chinese tourists to refrain from traveling to Japan at this time," and added, "Chinese tourists already in Japan should closely monitor the local security situation."

It is believed that investors are flocking to Lotte Tour Development on expectations that the company will benefit if the number of tourists traveling to Japan, one of China's top tourist destinations, decreases.

Lotte Tour Development, which achieved record-high results in the third quarter of this year, is also expected to see increased performance next year.

On November 14, Hyunji Lee, a researcher at Eugene Investment & Securities, stated, "It is encouraging that both monthly visitors and drop amounts continued to grow sharply from January to September this year, never declining and setting remarkable records," and added, "October also saw steady growth, even as visa-free entry for Chinese group tourists was fully implemented."

Lee further commented, "With continued high growth in the casino business, which has a significant impact on profits, we expect the company to turn to an annual net profit next year."

This content was produced with the assistance of AI translation services.