S. Korea`s travel account falls to red in Q2

SEOUL, July 30 (Yonhap) -- South Korea posted a deficit in overseas tourism in
the second quarter, snapping two quarters of surpluses as a stronger local
currency and a reviving economy encouraged offshore travel, data by the central
bank showed Thursday.
According to the data by the Bank of Korea (BOK), local residents spent US$1.66
billion on overseas tourism in the April-June period, compared to $1.23 billion
spent by foreign visitors to South Korea, bringing the nation's tourism account
to a deficit of $430 million for the three month period.
The second-quarter shortfall put an end to surpluses in the previous two
quarters. South Korea registered a travel surplus of $522.1 million in the fourth
quarter of 2008, followed by $528.9 million in the following three months.
The surpluses marked the first positive balance since 2006 when the bank began
compiling comparable figures.
Domestic travelers loosened the reins on overseas spending as a strengthening
local currency and rebounding economic activity helped boost consumer sentiment,
analysts said.
The South Korean won surged 27 percent as of Wednesday since hitting an 11-year
low of 1,570.3 won to the U.S. dollar in early March.
The central bank's index measuring shoppers' sentiment rose for a fourth month in
July to a seven-year high of 109, bolstered by the economy which grew 2.3 percent
on-quarter in the April-June period.
South Koreans' overseas spending for study and business travel also climbed,
leading the country's overall travel account to a deficit of $1.1 billion in the
second quarter after a two-month surplus, according to the BOK data.
"The travel deficit is expected to widen further in coming months as repatriated
students return to foreign schools and local residents increase offshore
tourism," a BOK official said.
pbr@yna.co.kr
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