David Brett, president of Amadeus Asia Pacific (pictured right), said increased travel between South Korea and China, and more competitive travel prices would greatly boost traveller numbers.

This growth would, however, put added pressure on infrastructure. But as he added, “South Korea has been smart to ensure that infrastructure investment is a priority and that technology plays its part to facilitate the industry’s growth.”

He listed four key factors, which will boost the industry’s growth further this year.

1.  Strategic focus on Chinese visitors

In late June the South Korean government introduced revised visa regulations to make it easier for Chinese travellers to obtain entry into the country. With new streamlined processes more Chinese will be able to make their way south more often. Multiple-entry visas will allow travel to South Korea for five years, up from the current one year.

In some parts of Seoul retailers have started accepting Yuan from Chinese travellers. The Shinsaegae Department Store’s main branch in downtown Seoul has introduced this new service, and more retailers in the capital are working with Chinese bankcard association UnionPay. With these and other new initiatives South Korea aims to attract one million Chinese tourists this summer.

2.  Investment in travel infrastructure

The South Korean government is working with the travel industry to invest in new travel infrastructure. In 2011 travel and tourism investment, including the purchase of new aircraft and construction of new hotels, totalled KRW7,600 billion (US$6.7 billion), making South Korea the world’s 19th highest investor in tourism. For this year investments is expected to rise by 4.8%, and 5% per annum.over the next 10 years to over KRW13,000 billion in 2022.

Korea’s national carriers have announced their intentions to overhaul passenger IT, in partnership with Amadeus, to more efficiently manage the higher travel demand. TOPAS, a provider of advanced technology solutions for Korean travel agencies, is also working with Amadeus to develop a next-generation technology system for travel professionals. This new system is expected to be completed by early 2014.

3.  Increased competition driving lower prices for domestic and outbound travel

Competition between domestic airlines is heating up as they target passengers for the Korea-China route, especially with more low cost carriers flying to China.

There is also a more competitive travel agency environment with the lifting of restrictions on foreign-owned travel agencies, leading to more international operators setting up shop. This means competitive prices for travellers and more South Koreans taking to the skies. A recent survey by Amadeus revealed that Seoul-Jeju was the world’s busiest inter-city flight route in 2011, helped by the rise of Jeju as a choice destination offering more competitive travel prices.

4.  Digital platforms as a channel for information and transactions

South Korea is making great leaps in digital technology platforms that deliver information, as well as provide a new booking channel for travellers. The mobile travel market is also expanding with a growing number of travel applications emerging. TOPAS recently launched its mobile platform to help Korean travel agents stay more connected with their clients during their trips.

“Healthy competition, opportunities in the Chinese market and the right technology will all play a role in South Korea’s travel performance in 2012 and beyond,” said Brett.