The incident has sparked international concern and prompted travel warnings from several countries, including the United Kingdom, the United States, Canada, and New Zealand.
The warnings, which advise citizens to avoid areas near major protest sites in Seoul, have had a direct impact on the nation's tourism sector. Inbound travel agencies have reported a sharp decline in new bookings, with some estimating a 20-percent drop since Dec. 4. Cancellation rates have also doubled, reaching approximately 80 cases per day.
Major tourism operators, such as Sky Tour, have seen their reservation rates plummet, jeopardizing the government’s annual target of attracting 20 million foreign visitors.
Hotels in areas affected by protests, including Courtyard Seoul Namdaemun and those near Yeouido, Gwanghwamun, and City Hall, are closely monitoring the situation. While cancellation rates may be relatively low, concerns about noise and traffic disruptions from protests persist.
Despite the political turmoil, major airlines like Korean Air and Asiana Airlines have not reported significant flight cancellations to Korea. However, the volatile currency market, exacerbated by political uncertainty, poses a significant risk to the airline industry. Korean Air, for instance, could incur foreign exchange losses of approximately 33 billion won ($23 million) for every 10-won rise in exchange rates, while Asiana Airlines faces potential losses of around 21.4 billion won.
The impact of the political crisis is evident in the stock market, with travel agency shares declining. Hana Tour shares have fallen by around 10 percent from 58,900 won on Dec. 3 to 53,000 won on Dec. 9.
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