The number of Chinese visitors to South Korea likely halved this year from last year amid high-profile row over installation of a U.S. antimissile system, dealing a financial toll of around $5 billion.

According to data released by the Bank of Korea on Wednesday, the number of Chinese tourists is expected to fall by nearly 4 million this year from above 8 million last year, hit by Beijing’s ban on group tours to Korea in March in its retaliation against Seoul’s deployment of a U.S. antimissile system. The number of Chinese visitors to Korea from March to October this year amounted to 2,382,000, plunging 60.1 percent from 5,947,000 during the same period last year.

Based on average spending of $1,300 worth by a Chinese tourist, the halved number of Chinese visitors would have caused $5 billion loss in the real gross domestic product, said the central bank.

The Korean government expects the number of Chinese visitors to the country would recover next year as the frayed relations between Seoul and Beijing are showing signs of improvement following the two countries’ agreement to normalize their ties in late October after a year-long standoff.

President Moon Jae-in’s state visit to China this week is also expected to serve as a momentum for the two countries to speed up the process to mend ties. The Chinese government last month was reported to have decided to partly lift its tour bans to Korea by allowing some travel agencies in Beijing and Shandong Province to resume the sale of package tour products to Korea, according to sources.

By Kim In-oh and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]