## China Lifts Group Tour Ban to Over 70 Locations
China has lifted a ban on group tours to more than 70 destinations, providing a significant boost to travel and airline stocks in Asia. In a statement issued on Thursday, [China’s culture and tourism ministry](https://zwgk.mct.gov.cn/zfxxgkml/scgl/202308/t20230810_946592.html) announced that group tours would resume to dozens of locations in Asia-Pacific, Europe, Africa, and North America.
Popular travel destinations in the Asia-Pacific region such as Japan, South Korea, and Australia were included in the list. The list also featured European countries like the United Kingdom, Germany, Finland, and Sweden. Middle East nations such as Qatar, Oman, Lebanon, and Israel were also included.
## South Korean Travel Stocks Surge
The South Korean travel industry saw the most significant market reaction. Stocks of travel agencies, airlines, and hotels all experienced a surge. Shares of Lotte Tour Development, a travel agency, spiked by more than 25%. Luxury hotel operator Hotel Shilla also saw a surge in its shares by 17%. South Korean airlines were not left behind, with Asiana Airlines and Korea Airlines seeing gains of 7% and 3.1% respectively.
This surge comes despite the fact that [Typhoon Khanun](https://www.reuters.com/business/environment/rains-lash-southern-japan-khanun-takes-aim-south-korea-2023-08-10/) made landfall in South Korea on Thursday, resulting in the cancellation of more than 330 flights and the evacuation of 10,000 people. This marks the first time in six years that China has permitted group tours to South Korea. The country had banned such tours in 2017 in response to the deployment of the Terminal High Altitude Area Defense system in South Korea.
## Japan and Other Countries Also See Gains
Japanese tourism stocks also saw gains. [Japan Airlines](https://www.cnbc.com/quotes/9201.T-JP/) and [All Nippon Airways](https://www.cnbc.com/quotes/9202.T-JP/) experienced an increase in their shares by 1.92% and 1.25% respectively. Shares of the Japanese travel agency [H.I.S](https://www.cnbc.com/quotes/9603.T-JP/) rose by 3.4%, while its counterpart Airtrip saw a rise of 2.9%.
In Australia, travel stocks remained largely unchanged, with the national carrier [Qantas](https://www.cnbc.com/quotes/QAN-AU/) just slightly above the flatline. The lifting of the ban is expected to have a significant impact on the global travel industry, which has suffered greatly as a result of the COVID-19 pandemic.
Original Story at www.cnbc.com – 2023-08-10 04:33:32
Comments are closed.