China Lifts Ban on Group Tours to Boost Travel and Airline Stocks
China has lifted a ban on group tours to more than 70 locations, providing a boost to travel and airline stocks in Asia. The country’s culture and tourism ministry announced that group tours will resume to various destinations in Asia-Pacific, Europe, Africa, and North America. Popular travel destinations in Asia-Pacific include Japan, South Korea, and Australia, while European countries like the United Kingdom, Germany, Finland, and Sweden are also on the list. Middle Eastern nations such as Qatar, Oman, Lebanon, and Israel are also included.
South Korean airline and travel stocks experienced the strongest reaction, with tour agencies, airlines, and hotel stocks all surging. Lotte Tour Development, a travel agency, saw its shares spike by more than 25%, while luxury hotel operator Hotel Shilla experienced a 17% surge in its shares. South Korean airlines, including Asiana Airlines and Korea Airlines, also saw gains.
Typhoon Khanun Hits South Korea, but China Allows Group Tours
Despite Typhoon Khanun making landfall in South Korea, resulting in flight cancellations and evacuations, China’s decision to allow group tours to South Korea is significant. The ban on such tours was imposed in 2017 due to the deployment of the Terminal High Altitude Area Defense system in South Korea. This marks the first time in six years that China is permitting group tours to the country.
Japan Tourism Stocks Rise
Japanese tourism stocks also experienced gains, with Japan Airlines and All Nippon Airways climbing by 1.92% and 1.25% respectively. Shares of Japanese travel agency H.I.S rose by 3.4%, while Airtrip saw a 2.9% increase.
Australian Travel Stocks Remain Steady
In Australia, travel stocks were relatively unchanged, with national carrier Qantas just slightly above the flatline.
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