South Korean tourists unable to enjoy an overseas summer getaway this year could help plug a hole in domestic spending by dropping some of their holiday cash at home.
If the tens of millions of would-be travelers spend only about a third of their typical overseas holiday budget in country, that could cover the loss in overall private consumption caused by the pandemic, according to a calculation by Bloomberg Economics.
That outcome would be good news for policymakers looking to encourage more domestic travel to support the economy, though the potential benefits need to be weighed against the increased risk of spreading the virus.