Due to the prolonged COVID-19 situation, the polarization of the hotel industry in Jeju, Korea’s top travel destination, is intensifying day by day. According to the hotel industry, while the luxury hotels in Jeju favored by honeymoon travelers are flourishing, the sales plummeted for one to three-star lodging facilities often visited by group travelers.

At the online leisure platform Yanolja, the reservations at four to five-star hotels in Jeju between January and February increased 62.3% compared to the same period last year. On the other hand, one to three star-accommodations increased by 56.3%, showing a slight difference. Although the number of travelers who visit in families and acquaintances of less than five people has increased, larger groups of travelers have stopped coming.

Specifically, the average price per booking for four to five-star hotels increased by 9.7%, while the price for one to three-star accommodations decreased by 7.7%. For the five-star The Shilla Jeju, sales in the fourth quarter of the year recorded KRW 20.6 billion, a 14.4% increase from the previous year. This contrasts the decline in sales at The Shilla Seoul by -34.4% and The Shilla Stay by -36.0% in the same period.

Also, the occupancy rate in the fourth quarter last year was 75%, far above the 33% at The Shilla Seoul and 66% at The Shilla Stay. Lotte Hotel Jeju has also sold more than twice the number of Honeymoon Packages this month compared to the same period last year.

The situation is quite the contrary for one to three-star accommodations. An associate at the Jeju Tourism Association said, “One to three-star tourist hotels that mainly cater to group travelers have seen drops in their sales because school trips and overseas group tourism are halted following the COVID-19 measures that restrict the gathering of five people or more.”

Meanwhile, 1.26 million tourists visited Jeju from January to February this year, a 32.8% decline compared to the same period in the previous year.