As Restrictions Become Easy, Tourism Stocks Jumps

Wednesday, June 29, 2022

On Tuesday, listed tourism companies in China have increased in numbers with positive sign of a major revival, such as easy rules about requirements related to quarantine for travellers, recuperating demand and the looming vacation of the summers.

A major tourism platform of China, on the Hong Kong market, jumped almost 16.54 percent to HK$230.40 in spite of posting a net loss for the first quarter of 2022.

Of late, a Shanghai-based company has also witnessed “positive signals” like huge rise in bookings and online searches for domestic air tickets and followed by a revival in international demand, mainly in Europe and the Asia Pacific.

In some regions, revenue has come again to the levels of pre-pandemic times in 2019, said the Executive Chairman of the company, James Liang.

The obligatory quarantine for inbound tourists, on the basis of the updated pandemic control rule will be decreased to 10 days from three weeks.

Also, the shares of the pandemic-affected firms’ related to tourism have risen. Huazhu Hotels have risen to 13.45 percent to close at HK$32.9, compared to the 0.85 percent gain for the Hang Seng Index. China Eastern Airlines increased 4.49 percent to 5.35 yuan as Shanghai International Airport Co has increased 8.53 percent to close at 56.51 yuan.
No longer, Hainan, Sichuan Provinces and Gansu require visitors from low risk regions of Shanghai and Beijing. For flights to Hainan and Sichuan provinces, online searches as well as bookings have increased up to 50 percent.

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