Korean travel agencies seek breakthrough amid California tourism slowdown
California’s tourism industry has entered a downturn as international visitor arrivals decline, and Korean American travel agencies are seeking new strategies through product diversification and creative packages.
Governor Gavin Newsom warned in May that President Donald Trump’s tariff and immigration policies could dampen overseas tourism. The concern has materialized: in June, Las Vegas—one of the nation’s top destinations—reported an 11.3% drop in visitor numbers year-over-year, with airline passengers down 6.3%.
The World Travel & Tourism Council (WTTC) forecasts U.S. outbound travel spending to fall by $12.5 billion this year compared with last. The slump has hit Korean-owned agencies particularly hard, with package tour bookings down 30–40% and airline ticket sales also declining.
Pivot to domestic and short-haul markets
While demand for trips to Korea and Europe has weakened, domestic travel is rising.
“Although inbound visitors have declined, bookings for Yellowstone and Alaska cruises have jumped 50%,” said Shin Young-im, Vice President of Samho Tour. “Short three- to four-day trips are becoming popular, so we expanded bus tours from once to twice a week.”
Agencies are focusing on retaining loyal clients by rolling out differentiated products. Steve Cho, Executive Director at Aju Tour, noted, “We’re offering upgraded itineraries to Central Asia and South America, while family and group travelers are flocking to golf-and-leisure packages in Los Cabos, as well as Southeast Asia trips combined with Korea visits.”
Grace Lee of Chunchoo Tour added that the company runs monthly themed day trips and plans to launch a 19-day South Pacific package in 2026 covering Australia’s Uluru, Tasmania, New Zealand, and Fiji.
Short, small-group getaways are also gaining traction. “We’ve developed one- to two-day themed tours like the ‘What to Do on the Weekend’ series,” explained Blue Tour’s Director, Park Tae-joon. “These include the Ojai Glow Trip, San Diego train tours, and Santa Barbara winery visits—offered at reasonable prices with a focus on local exploration and wellness.”
Corporate and specialty tours
Some operators are shifting from traditional tourism toward corporate and event-related travel.
“Our focus is on incentive trips, conventions, and exhibition tours,” said Lee Moon-sik, CEO of Joa Tour. “Next spring, we’re organizing a group for LA’s Silver Model Association to attend Seoul Fashion Week, as well as delegations to CES in Las Vegas and other major Korean industry conventions.”
Elite Tour, meanwhile, is set to host a Labor Day weekend golf package at Pebble Beach and San Francisco.
Industry insiders believe international travel demand will remain sluggish in the near term. As a result, differentiated products and the promotion of domestic and regional travel will be key for Korean agencies striving to stabilize revenue.
BY EUNYOUNG LEE [lee.eunyoung6@koreadaily.com]
