Photo Credit: Photo credit: Martin Puddy
China Lifts Ban on Group Tours to Multiple Destinations
China has announced the lifting of a ban on group tours to more than 70 locations worldwide. The news is prompting a surge in travel and airline stocks across the Asia-Pacific region. China’s culture and tourism ministry announced on Thursday that group tours will resume to destinations in Asia-Pacific, Europe, Africa, and North America.
Companies In Asia Are Seeing Gains
This development has sparked immediate reactions in Asia’s travel market. South Korean airlines and tourism companies are experiencing some of the most substantial gains. Tour agencies, airlines, and hotel stocks also saw a surge in value. The momentum extended to airlines as well, with Asiana Airlines registering a 7% climb and Korea Airlines advancing by 3.1%.
The news comes amid the impact of Typhoon Khanun last week, which made landfall in South Korea. The typhoon led to the cancellation of more than 330 flights and necessitated the evacuation of 10,000 individuals to safety. Despite this challenge, South Korean airlines and tourism-related enterprises continue to exhibit resilience and growth prospects.
For South Korea, this marks a pivotal moment as it welcomes back group tours from China after a six-year hiatus. China imposed a ban on such tours in 2017 as a response to the deployment of the Terminal High Altitude Area Defense system in South Korea. The renewed inflow of Chinese tourists is anticipated to invigorate the nation’s tourism sector.
Japan is also riding the wave of positive sentiment. Tourism stocks in the country experienced notable gains, with major carriers Japan Airlines and All Nippon Airways observing respective climbs of 1.92% and 1.25%. Japanese travel agency H.I.S. witnessed a rise of 3.4% in its share value, while Airtrip, its counterpart, saw a commendable uptick of 2.9%.
Across the Pacific in Australia, the impact was more muted. Travel stocks, including those of national carrier Qantas, remained relatively stable with slight fluctuations above the flatline.
China’s decision to reopen group tours to a wide range of international destinations has breathed new life into the travel and airline industries. As markets react to this significant development, the interplay between geopolitical factors and economic dynamics remains a focal point for industry observers.