Yuanta Upgrades Lotte Tour Development on Jeju Casino Growth

Korean brokerage Yuanta Securities Korea has upgraded its outlook on Lotte Tour Development, the company behind Jeju’s high-profile Dream Tower casino resort. The revised assessment, released on 8 December, reflects confidence that the operator is well-positioned for sustained revenue growth, supported by a rebound in Chinese tourism and an expanding presence in Jeju’s foreigner-only casino market. According to Yuanta, improving travel trends and heightened local gaming demand are expected to bolster Lotte Tour Development’s earnings trajectory.

Evidence of Regional Tourism Recovery

Analyst Lee Hwan-uk highlighted data indicating a strong return of Chinese visitors to Jeju. Media reports from Chosun Biz show third-quarter arrivals from China reached 51.3% of pre-THAAD levels, while flight frequency between the destinations recovered to 84.7% of historical norms. Although travel patterns have not fully normalized, the trend points toward continued recovery and Lee anticipates further growth in visitor numbers in 2026 as diplomatic relations improve and Chinese outbound travel patterns stabilize.

Geopolitical Factors Boosting South Korea

Tourism recovery is being influenced not just by demand, but also by regional geopolitical shifts. China has reduced flight capacity to Japan, prompting tourists to seek alternatives such as South Korea. Meanwhile, Thailand has faced its own setbacks, including a widely publicized kidnapping case and political resistance to legalized gambling, making it less attractive for Chinese visitors. These dynamics have created an opportunity for South Korea and Jeju in particular to capture a larger share of regional tourism flows.

Strong Casino Performance Drives Confidence

Lotte Tour Development has delivered robust operational results. Third-quarter net casino revenue increased 65.4% year-on-year to KRW139.3 billion, supported by strong visitor demand at Dream Tower. The property hosted 172,783 visitors, a 60.7% increase from the prior year, while total drop rose 78.4% to KRW848.5 billion. Drop per visitor reached KRW49 million, highlighting the strong engagement of premium gaming clientele.

Market Leadership and Expansion Opportunities

Dream Tower’s brand recognition has translated into dominant market share, rising from 69.6% at the end of 2024 to 79% as of October 2025. Visitor growth in October and November, at 55.9% and 41.3% respectively, exceeded analyst expectations, signaling strong momentum heading into year-end.

Positioned for Long-Term Growth

Yuanta analysts view Lotte Tour Development as well-positioned for sustained medium-to-long-term expansion. The company has opportunities to increase baccarat tables, develop up to 1,600 hotel rooms and grow betting activity across its operations. Combined with improving regional tourism and strong operational execution, these factors underpin the brokerage’s bullish outlook and suggest the company’s fundamentals, rather than speculation, are driving investor confidence.