China’s recent decision to lift a ban on group tours to more than 70 locations has had a significant impact on travel and airline stocks in Asia. The culture and tourism ministry of China announced on Thursday that group tours will resume to various destinations in Asia-Pacific, Europe, Africa, and North America.
Among the top travel destinations in Asia-Pacific, Japan, South Korea, and Australia were included. The list also featured countries like the United Kingdom, Germany, Finland, Sweden, Qatar, Oman, Lebanon, and Israel.
South Korean airline and travel stocks experienced the strongest reaction to the news, with tour agencies, airlines, and hotel stocks all surging. Lotte Tour Development, a prominent travel agency, saw its shares spike by more than 25%, while luxury hotel operator Hotel Shilla witnessed a surge of 17%.
Despite the impact of Typhoon Khanun, which made landfall in South Korea on Thursday and resulted in the cancellation of over 330 flights and the evacuation of 10,000 people, the lifting of the ban on group tours to South Korea has been welcomed. This marks the first time in six years that China is allowing group tours to South Korea, as the ban was imposed in 2017 in response to the deployment of the Terminal High Altitude Area Defense system in the country.
Japanese tourism stocks also experienced gains, with Japan Airlines and All Nippon Airways climbing 1.92% and 1.25% respectively. Shares of Japanese travel agency H.I.S rose by 3.4%, while its counterpart Airtrip saw a 2.9% increase.
In Australia, travel stocks remained relatively unchanged, with national carrier Qantas just slightly above the flatline.
Overall, the lifting of the ban on group tours by China has provided a significant boost to travel and airline stocks in Asia, particularly in South Korea and Japan. This decision is expected to have a positive impact on the tourism industry in these countries and contribute to their economic recovery.
What specific changes or trends have emerged in the travel and airline sectors since China’s recent announcement to lift the ban on group tours to multiple destinations
China’s recent announcement to revoke the ban on group tours to over 70 destinations has resulted in a notable influence on the travel and airline sectors.
This is great news for the travel industry and a positive step towards recovery for the global economy.
I’m excited to see tourism picking up again and the positive impact it will have on the airline industry!