© Reuters. Tourists are seen at Stradun street in Dubrovnik
1/WANTED: AUGUST LIFELINE FOR TOURISM
August conjures up images of beaches and sunshine but it may not bring much respite to travel and tourism stocks. Battered by lockdowns, tourism has lagged a broader market recovery, with airline, hotel and leisure shares 20%-50% lower year-to-date.
After an uptick since the start of August – Europe’s travel and leisure index has risen 7% – the lifting of a U.S. advisory against foreign travel and initiatives, such as Spain’s offer to cover travellers’ health costs, could provide some support.
But more is at stake than share prices – shrinking tourism may shave 3%-11% off countries’ GDP. And as stricken airlines and hotels lay off staff, mass unemployment is a potent threat.
Graphic – Summer hopes for travel and tourism stocks? https://fingfx.thomsonreuters.com/gfx/mkt/rlgvdnedqvo/Pasted%20image%201596795894410.png