The number of foreign tourists staying four nights or longer at Seoul's four- and five-star hotels is rising as the Korean won continues to weaken. With the won-dollar exchange rate climbing to the 1,500 won range, the dollar-denominated cost of accommodation, shopping, and dining has eased, prompting foreign visitors to extend their stays in Seoul and turn to luxury hotels.
According to the hotel industry on the 4th, the share of foreigners among long-staying guests who booked four or more nights at Signiel Seoul during January to April this year rose by about 20 percentage points from a year earlier. Industry watchers say that as the number of foreign individual travelers visiting Seoul grows, demand for stays of four nights or more at premium hotels is expanding faster than demand for one- or two-night short stays.
Grand InterContinental Seoul Parnas also saw an increase in long-stay demand from foreign guests. On a cumulative basis from January to April this year, the share of foreigners among guests staying four or more nights rose 12 percentage points from the previous year. Over the same period, revenue from foreign long-stay guests accounted for more than 30 percent of total room revenue.
A similar trend is emerging at four-star hotels. At Four Points by Sheraton Josun, Seoul Myeongdong, the share of foreign guests staying four or more nights on a cumulative basis from January to April this year increased by about 15 percentage points from a year earlier. Seoul Dragon City, a hotel-plex near Yongsan Station, also saw single-digit growth in long-stay demand from foreign guests during the same period.
The hotel industry sees the weak won as a major factor behind the rise in long-stay demand. As the dollar-based cost of accommodation, shopping, and dining in Korea has become relatively cheaper, foreign tourists have more room to extend their stays. The won-dollar exchange rate surged to the 1,500 won range after the outbreak of the U.S.-Iran war in March this year.
The shift in foreign tourists' travel patterns from short, group-tour-centered itineraries to longer, individual-travel-centered stays has also played a role. As demand grows for combining shopping, dining, performances, and medical and beauty services, more foreign tourists are using luxury hotels with good access to downtown Seoul as their base. According to the Ministry of Culture, Sports and Tourism, the cumulative number of inbound visitors from January to April this year reached 6.77 million, up 21 percent from the same period last year.
"Recently, foreign guests look not just at low room rates but also at transportation convenience, room condition, dining facilities, and access to shopping and tourism," a hotel industry official said. "With the exchange rate effect combining with demand from individual travelers, long-stay demand at major four- and five-star hotels in Seoul is expected to continue for the time being."
