Intense Surge in Travel Demand During Anticipated 10-Day October Holiday in Korea Sparks Debate Over Economic Advantages
South Korea is gearing up for its longest public holiday since 2017, with the potential alignment of three national holidays, including the Chuseok autumn harvest festival, offering South Koreans a 10-day stretch off in October. This extended break is expected to significantly increase domestic travel demand, boost local economic activity, and raise domestic credit card spending.
According to government research, extending holidays to create continuous breaks encourages more domestic travel and consumption, leading to a positive ripple effect on related industries and job creation. An additional Monday holiday is estimated to generate about 2.1 trillion won in consumption expenditure per day, with production inducement of roughly 3.8 trillion won and value-added inducement near 1.7 trillion won.
The restaurant and lodging sectors alone contribute about 41.5% of this output increase during extended holidays. This surge in demand is evident in the travel industry, with overseas travel bookings for October 3-9 surging by 28.7 percent compared to the Chuseok period in September last year. Popular destinations for travel during this period include Japan, Vietnam, Taiwan, and other Southeast Asian countries.
Airlines are also responding to the travel demand, with Jeju Air planning 234 additional international flights and adding over 42,000 seats. Other airlines such as Jin Air, T'way Air, Eastar Jet, and Air Busan are also expanding routes, particularly to Japan and Southeast Asia.
Domestic tourism is experiencing high demand, with hotel bookings in Jeju and other major destinations already over 90 percent for the holiday week. However, this surge in travel may lead to schedule disruptions in schools and small businesses, as they are not required by law to grant temporary public holidays.
While additional holidays boost consumption in some sectors, there are concerns that they might also lead to a drain of funds from other parts of the local economy. The net effect could vary depending on the structure of economic activities and consumer behavior during these breaks.
Despite these concerns, the overall impact of the extended holiday is expected to enhance domestic travel demand, result in higher credit card spending on leisure-related goods and services, and significantly stimulate local economies through increased consumption in services such as accommodation and dining. This aligns with South Korea’s ongoing transition toward a stronger domestic service economy, which is vital for economic resilience and inclusive growth.
However, recent economic data from the Seollal New Year holiday in January 2025 raises doubts about the plan's potential economic boost. Outbound travel rose during that holiday, but domestic credit card spending fell 34 percent compared with the previous week. This suggests that while extended holidays can stimulate travel, they may not always have the desired effect on domestic spending.
Despite this, the South Korean government is yet to take an official position on adding an extra day off on October 10. With the potential economic benefits and the surge in travel demand, it remains to be seen whether South Korea will proceed with the longest public holiday since 2017.
[1] National Assembly Research Service Report [3] Korea Tourism Organization [4] Bank of Korea Monthly Report [5] OECD Economic Survey of Korea 2021
- The extended holiday in South Korea, potentially aligning three national holidays and offering a 10-day break in October, is predicted to not only boost local travel demand but also stimulate related industries such as accommodation and dining, thereby enhancing the nation's service economy.
- Travel industry data shows a surge in overseas travel bookings for October 3-9, with destinations like Japan, Vietnam, Taiwan, and Southeast Asian countries being favored, indicating a significant increase in domestic travel due to the extended holiday.
