Jeju, South Korea’s Industry Faces Challenges: Experts Call for Better Marketing and Air Connectivity to Boost Overseas Tourism

Published on December 5, 2025

Jeju, a semi-autonomous territory of South Korea, is home to eight foreigner-only casinos, which are now grappling with increasing competition from other regions in the Asia-Pacific. The island’s casinos, established to attract international gamblers, are struggling to maintain their market share as business prospects continue to decline for several of the venues. This shift in the landscape has prompted experts in the casino and tourism sectors to suggest that Jeju must rethink its strategy for attracting visitors and gamblers.

The Current State of Jeju’s Casino Industry

Jeju’s casino industry, which emerged during a period of rapid growth in international tourism, faces an uncertain future. Initially fueled by a boom in Japanese tourism during the 1980s and 1990s, the island’s eight casinos were designed to cater to foreign visitors. However, experts are now warning that the sector is at a crossroads, with concerns over declining revenues and increasing competition for gambling spend across the region.

Amanda Ga, the Associate Vice President for External Affairs at Jeju Shinhwa World, highlighted that the issue isn’t the sheer number of casinos but rather the lack of integration in marketing efforts and travel infrastructure. Ga suggested that a comprehensive approach to tourism marketing, including a strategic development of air routes, MICE (meetings, incentives, conferences, and exhibitions) events, and general content, could help revitalize the island’s gaming industry.

According to Ga, the gaming sector’s growth is closely tied to the island’s overall tourism development. A more coordinated approach to promoting Jeju as a tourist destination would benefit the casinos and help attract a wider range of visitors, both for leisure and business. She emphasized that a “functional redesign” of Jeju’s tourism marketing and long-term restructuring of its tourism offer were essential for the island’s sustained success.

Rethinking Jeju’s Casino Licensing System

The current casino licensing model in Jeju, where licenses are issued without specific conditions or time limits, has also been called into question. Felix Lee, a former executive at Grand Korea Leisure, pointed out that the absence of any performance-based conditions for casino operators makes Jeju’s licensing system “atypical” compared to international standards. Lee recommended that Jeju introduce performance-based, renewable licenses to ensure operators meet environmental, social, and governance (ESG) standards and contribute meaningfully to the local economy.

While the current model has allowed for the expansion of Jeju’s foreigner-only casinos, experts argue that regular evaluations of operators’ impact on the local community, including job creation and social benefits, should become a key part of the licensing process. This shift would better align the casino industry’s growth with Jeju’s broader tourism and economic goals.

Dominance of Large-Scale Integrated Resorts

The financial landscape of Jeju’s casino industry is dominated by two large integrated resorts (IRs). In 2024, Jeju Dream Tower and Jeju Shinhwa World accounted for a substantial portion of the island’s gaming revenue. Jeju Dream Tower, operated by Lotte Tour Development Co Ltd, was responsible for 69.8% of the island’s gross gaming revenue (GGR), with a total of KRW 458.91 billion (approximately US$312.2 million) in gaming revenue. Jeju Shinhwa World contributed an additional 15.1% of the GGR, according to data from South Korea’s Ministry of Culture, Sports, and Tourism.

These figures reveal a clear concentration of revenue within a few large-scale resorts, which makes it difficult for smaller casinos to compete. Ga emphasized that rather than focusing on fierce competition among the existing operators, the goal should be to expand the overall market size. This would involve attracting more international tourists and increasing the appeal of Jeju’s gaming offerings.

Jeju’s Shift from Domestic to International Tourism

The majority of Jeju’s tourism is still domestic, with fewer than a quarter of its visitors coming from overseas. According to the Jeju Tourism Association, nearly 10.17 million visitors came to Jeju in the nine months leading up to September 2025, but only 1.74 million were international visitors. This figure represents a 15.6% increase in international arrivals compared to the previous year, though it is still a small portion of the total visitor count.

The island’s status as a domestic tourism hub presents both challenges and opportunities for its gaming industry. With a limited number of international tourists, particularly from countries with strong gambling markets like China and Japan, Jeju’s casinos are struggling to capture a significant share of the foreign gaming market.

One of the key issues Jeju faces is its limited air connectivity. Despite a restart of the visa-free program for international travelers in June 2022, most foreign visitors still need to transit through the Korean mainland to reach Jeju. This process requires travelers to obtain Korea Electronic Travel Authorization (K-ETA), even if they are otherwise eligible for visa-free entry into South Korea. This additional step could be discouraging for potential visitors.

The Role of Chinese Tourists and Macau’s Influence

Chinese tourists make up a large portion of Jeju’s foreign visitors, accounting for 73.8% of international arrivals. While the Chinese market remains crucial to Jeju’s tourism sector, the island’s reliance on Chinese tourists presents risks due to fluctuating travel patterns and broader geopolitical tensions. Meanwhile, Macau, with its more open gambling environment, remains a major competitor for Jeju, drawing tourists from across the region without nationality-based restrictions on gambling.

Jeju could benefit from diversifying its visitor base, reducing dependence on a single demographic, and attracting travelers from other regions, such as Southeast Asia, to create a more balanced and sustainable tourism industry. The development of better air routes directly connecting Jeju to other international markets, particularly from nearby countries, is seen as one of the most critical steps for Jeju’s growth.

The Possibility of Local Gambling in Jeju

The potential introduction of local gambling in Jeju has been discussed periodically, but Ga suggested that social and cultural issues would make such a move unlikely in the near term. Introducing local players to Jeju’s casinos could face significant resistance, particularly in a country where the only legally operating casino for locals is located in Kangwon Land.

However, some experts, including Lee, believe that Jeju’s geographical isolation could make it a viable pilot site for local gambling, provided safeguards such as high entry fees and visit frequency limits were put in place. Such a move would require careful consideration of the social and economic impacts, ensuring that it aligns with the island’s broader tourism and economic strategies.

Conclusion: Jeju’s Path to Expanding Its Gaming Industry

Jeju’s foreigner-only casinos are at a pivotal moment in their development, with challenges arising from market competition and limited international tourist numbers. To thrive in an increasingly competitive market, Jeju must rethink its approach to tourism marketing, improve air connectivity, and reconsider its casino licensing model. By expanding the island’s appeal to international tourists, enhancing its integrated resort offerings, and strategically fostering growth in its gaming industry, Jeju has the potential to regain its status as a leading gaming destination in the Asia-Pacific region.