As the U.S. government’s “reciprocal tariff” policy sends shockwaves through the global economy and tourism industry, Yanolja Research (Director: SooCheong Jang) suggests that this crisis may, in fact, present an opportunity for Korea’s tourism sector. In its report “Analysis of the Impact of U.S. Reciprocal Tariff Policies on the Global Tourism Industry”, released on April 11, Yanolja Research highlights that while Korea has been designated as a country subject to a 25% U.S. tariff, there is still room for negotiation. Moreover, Korea may benefit by actively capitalizing on demand within the Asia region, potentially achieving positive outcomes in inbound tourism.
The report notes that although the reciprocal tariffs could have an adverse economic impact, a 90-day negotiation window provides an opportunity to mitigate the potential fallout. However, if the tariffs are implemented, the resulting economic downturn and decline in household income could dampen Korea’s outbound travel demand, which reached 28.69 million people last year. The report points out that the appeal of travel to the U.S. may decline due to a weak Korean won and rising prices in the U.S., leading middle-class travelers to opt instead for destinations like Japan, China, and Southeast Asia.
If the reciprocal tariff policies persist, the report forecasts that global tourism may shift toward regionalization. Canadians may choose to vacation domestically or in the Caribbean instead of the U.S.; Chinese tourists may prefer Japan, Korea, or Southeast Asia; and EU citizens are likely to increase travel within Europe. This suggests a potential decline in inter-regional travel demand, offset by increased intra-regional travel. Still, the UN World Tourism Organization (UNWTO) warns that such changes could lead to a global slowdown in international tourism growth.
In this context, the U.S. tourism industry may suffer serious damage. The report predicts that tariffs imposed on allied countries such as Canada and the EU could fuel anti-American sentiment, potentially leading to a more than 5% drop in foreign visitors to the U.S. in 2025 — equating to a loss of over $64 billion (approx. KRW 92 trillion). Furthermore, rising operational costs from tariffs on imported goods may force hotels and airlines to raise prices and reduce services or routes.
By contrast, Korean inbound tourism may find a breakthrough despite global tourism constraints by leveraging its relative strengths within the Asia region. Lee Kwan-young, Associate Research Fellow at Yanolja Research, stated, “Geographically and culturally proximate countries like China, Japan, and those in Southeast Asia may be less affected by reciprocal tariffs. Targeted marketing focused on Korea’s K-Culture could generate stronger-than-expected increases in tourist arrivals.”
Considering that Chinese tourists made up the largest share of the 16.37 million visitors to Korea last year, Chinese travelers — amid rising U.S.–China tensions — may increasingly view Korea and other Asian destinations as a more comfortable alternative. The report further emphasizes that the weak Korean won makes Korea a more affordable destination, offering a chance to turn the negative impact of tariffs into a positive tourism outcome.
Director SooCheong Jang of Yanolja Research commented, “If global tourism flows shift toward regional travel due to reciprocal tariffs, Korea has a real opportunity to emerge as a tourism hub within the Asia region — and it has the potential to do so. To seize this opportunity, Korea must implement targeted promotions and personalized services focused on key markets such as China, Japan, and Southeast Asia.”
The report concludes that Korea must act quickly to minimize the impact of reciprocal tariffs and maximize its potential opportunities. Airlines and travel agencies should adjust the weight of U.S. routes and strengthen offerings for destinations such as Southeast Asia, Japan, China, and Australia. Meanwhile, the government should ramp up inbound tourism promotion campaigns and stimulate domestic tourism demand.
Professor Kyu-Wan Choi of Kyung Hee University’s School of Hotel and Tourism Management emphasized, “While the U.S. reciprocal tariff policy represents a clear crisis, if Korea effectively capitalizes on intra-Asia tourism demand, it could not only recover but surpass pre-pandemic inbound levels to achieve record performance this year. Cooperation between the government and industry will be the key to success.”
Prev 
Back 