Hotel, Casino and Duty-Free Stocks Jump on Golden Week Travel, High Oil Prices

Hotel, casino and duty-free stocks rallied across the board on April 27 as investors bet a surge in visitors from Greater China and Japan will lift South Korea’s tourism sector ahead of the early May holiday period.

According to the Korea Exchange, Hyundai Department Store closed at 113,300 won, up 14,800 won, or 15.03%, from the previous session. The company operates duty-free stores, while its The Hyundai Seoul branch in Yeouido has become a must-visit stop for foreign tourists, making it a play on rising inbound travel.

GS P&L, which operates its own hotel chain including the Parnas Hotel in Seoul’s Samseong-dong, surged 10.37%. Lotte Tour Development, which runs a foreigners-only casino and hotel at the Jeju Dream Tower integrated resort, gained 5.24%. Hotel Shilla climbed 5.78%.

The move reflected expectations that travelers from China and Japan will flock to South Korea during the holiday stretch at the start of next month.

In Japan, a string of holidays begins at the end of April with Showa Day on April 29, Constitution Memorial Day on May 3, Greenery Day on May 4 and Children’s Day on May 5. The period is one of Japan’s best-known holiday seasons and is widely seen as the busiest travel window of the year for Japanese tourists. In Golden Week booking data released by major Japanese travel agency HIS, Seoul ranked first among overseas destinations.

In China, the Labor Day holiday runs from May 1 to May 5. A report on outbound travel trends for the 2026 Labor Day holiday released by Airbnb China on April 16 showed South Korea ranked first in country-level destination searches.

A Lotte Tour Development official said there are days during the Golden Week period in early May when bookings at the Grand Hyatt Jeju inside Jeju Dream Tower reach 1,550 rooms out of a total 1,600. That is effectively full occupancy.

The rally has also been aided by worsening relations between China and Japan, which have diverted travelers from both countries to South Korea since last year. More recently, high oil prices triggered by the U.S.-Iran war have added to the tailwind for South Korea’s tourism industry. Rising fuel surcharges are making short-haul destinations more attractive as airfares climb.

The average price of Singapore jet fuel, or MOPS, used to calculate May fuel surcharges was 511.21 cents a gallon, or $214.71 a barrel, during the period from March 16 to April 15. That exceeded the threshold for Level 33, the highest surcharge tier, which applies when prices are above 470 cents a gallon. It is the first time Level 33 has been applied.

The upbeat outlook is also drawing attention. Lee Jin-hyup, an analyst at Hanwha Investment & Securities, said South Korea’s current inbound travel cycle is stronger than Japan’s was in 2023 and 2024. China’s economy has been recovering after a weak start to the year, and the yuan has been strengthening in response. That could boost the purchasing power of Chinese tourists visiting South Korea.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com