"Many of the Chinese tourists who would have been visiting Japan are now coming to South Korea due to the island disputes between China and Japan," said Kang.
Approximately 12,000 visitors per day are currently entering South Korea on cruises from China, according to the KTO.
Business as usual at DMZ
South Korea's largest airline, Korean Air, and several major hotels in Seoul, tell CNN there has been no noticeable dip in bookings.
"We have not seen any impact from the news from North Korea thus far, but we'll have to see about any further impact," a Korean Air public relations representative told CNN.
This past weekend at Imjingak, an area within the Demilitarized Zone (DMZ) popular with tourists, business appeared down only slightly.
Though parking lots were jammed with Chinese tour groups and Korean families on day trips, the DMZ appeared to have fewer Western visitors than usual.
"We've seen around a 20 percent decrease in business, but it's not too bad," said Kim Bong-nam, 57, who has been selling hot dogs at the DMZ for 30 years.
"There was a similar drop in visitors when the Yeonpyong Island shelling happened," he said, referring to the 2010 incident when two civilians and two South Korean marines died after a North Korean attack.
KTO's DMZ office said tours were operating normally. The KTO was unable to provide specific DMZ visitor data.
"We are not afraid at all!" said a member of a group of tourists from Hebei, China, when asked why they'd decided to visit the DMZ in the midst of current reports. "There will be only peace here."
According to Professor Lankov, there's a reason Chinese tourists are unruffled by the threats from North Korea.
According to the North Korea expert, Chinese media isn't reporting on the situation in dire tones. He said Chinese reporters haven't adopted the posture of their Western counterparts, "like CNN and BBC, as if war is going to break out."
"The Chinese government doesn't allow them to portray their fellow communist country in that light," said Lankov.