The return of Chinese group tours to Korea for the first time in six years on Saturday has given local tourism-related firms, especially those in the cosmetics industry, cause for optimism.

On Saturday morning, cruise ships carrying Chinese tourists docked at various ports in Korea, including one from Qingdao with 118 passengers, 81 of whom were travelling in a group.

Around the same time, a second cruise ship carrying 55 passengers from Qingdao to Pyeongtaek, Gyeonggi, arrived.

Since Beijing implemented its lockdown against Covid-19 in 2020, more than three years have passed since these cruise ships last sailed between China and Korea.

More significantly, Chinese tour groups had not visited Korea for the previous six years.

Group excursions were prohibited in 2017 when ties between the two nations deteriorated as a result of Korea's decision to permit the United States to build the Terminal High Altitude Area Defense (Thaad) long-range missile defense system in the nation. While China has previously permitted individual tourists to travel to Korea, this policy changed in response to the decision.

Despite claims to the contrary from the U.S. military and the South Korean government, China's leadership views the missile defense system as an American effort to spy on China.

The local tourism business was immediately impacted by the ban's lifting, particularly on Jeju Island, which had been a well-liked destination for Chinese tour groups before the ban.

All 53 of the cruise ships leaving China for Jeju Island were completely booked on Friday.

Korea and 77 additional countries, including the United States and Japan, were added to the list of authorized travel destinations in China on Thursday by the Ministry of Culture and Tourism.

Korea was not one of the 40 countries China reinstated in March or one of the 20 nations it reinstated in February.

Over 3 million Chinese tourists visited Jeju in 2016, making up 85% of the 3.6 million international visitors to the island.

1.2 million of those Chinese visitors had sailed directly to Jeju Island.

The amount fell to 747,000 the next year, a 76 percent decrease. Less than 9,800 Chinese tourists came to the island last year.

Nearly 550,000 Chinese visitors visited Korea, including Jeju, in the first half of this year, according to the Korea Tourism Organization.

That represents an increase of 627 percent from the first half of 2022.

Over 8 million Chinese tourists came that year, which marked the highest amount ever. Due largely to Chinese group tours, the number of foreign visitors surpassed 10 million for the first time in that same year.

The government reported that tourism brought in 19 trillion won ($14.3 billion) in Korea in 2017 and that it also generated employment.

The predicted increase of Chinese travelers in September and October is particularly anticipated by the Korean tourism industry, including related industries like hotels and cosmetics.

One of China's most important festivals, the Mid-Autumn Festival, and China's National Day both fall between September 29 and October 6.

It is anticipated that Korean airlines would act swiftly to boost the number of flights between China and Korea.

820,000 Chinese people traveled by air to Korea last month. That represents 52% of all air travelers from China in 2019.

From barely 60 flights in January, there were 670 flights a week between Korea and China as of July. In April, the Ministry of Land, Infrastructure, and Transport declared that by September, there would be 970 flights weekly.

In March, the Korea Center for International Finance predicted that a rise in Chinese visitors would boost Korea's economic development by 0.3 to 0.5 percentage points. This prediction came amid increased expectations that China will eliminate its Covid-19 travel ban.

For every million Chinese visitors, the Bank of Korea predicted an additional 0.08 percentage point growth in Korea's economic growth.

Accordingly, if 8 million Chinese visitors visit Korea each year, the economy of the nation will rise by an additional 0.64 percentage points.

The government and important institutions in Korea anticipate growth of 1.4 to 1.5 percent this year.

Some economists, however, are skeptical that more Chinese tourists will have a big positive impact on Korea's economy given Beijing's current economic difficulties, which include deflation brought on by declining spending.

NH Investment & Securities analyst: "Hopes are rising regarding greater numbers of Chinese group tours in Korea." However, recent worries about the slowing Chinese economy and stagnating expenditure have emerged.