Staying 5 hours on cruise ship in Busan raises sales 30%: study

With the resumption of international cruise ship travel to South Korea, domestic credit card company BC Card says daily sales in commercial districts near cruise ship terminals in the nation's biggest port city of Busan grow up to 30%.

China's recent resumption of group tours to South Korea has the market wondering about the impact on domestic consumption.

BC Card on Tuesday said an analysis of credit card sales by foreign visitors in downtown Busan from March to July, a 51-day period in which 63 cruise ships docked in the city, found that the sales index in the Busanjin district rose to 129.4, 30% above average.

The company set a benchmark index of 100 for average daily sales of a district and area near a cruise ship terminal and recalculated the figure when a cruise ship arrived. The Busan districts of Dong (104.5), Yeongdo (106), Jung (110.7) and Suyeong (108.5) all saw higher sales on days when cruise ships arrived.

The longer the stay on a cruise ship, the more sales grew. The index of tourists who stayed under six hours was 100, but that for those staying seven to 10 hours was 119 and that for travelers of over 10 hours 122.

Instead of department stores and duty-free outlets, business from foreign tourists arriving on cruise ships was focused more at amusement parks, whose sales grew 40.9%, traditional markets (40%), luggage storage services (19.3%), city tour buses (16%) and skin care (10.9%)

"We confirmed that international cruise lines, which were suspended due to COVID-19, are serving as a very positive factor in reviving the domestic economy despite resuming just recently," Vice Minister of Oceans and Fisheries Park Sung-hoon said. "We will first expand docking facilities to attract international cruise ships."

The Tourist Knowledge and Information System of the Seoul-based Korea Culture and Tourism Institute said 59 cruise ships entered Busan in the first half of this year.

Write to Mi-Hyun Jo at mwise@hankyung.com