EU Introduces New Travel Restrictions

Share On Facebook
share on Linkedin
Print

What role does the tourism industry play in the eurozone economy?

Over the past few decades, the role of the tourism sector in the economic development of Europe has grown several times. According to a UN study, in some countries, the share of this sector in GDP can be more than 20 percent, and in general, tourism is the third-largest export industry in the world economy. As of 2019, tourism accounted for 7 percent of global trade, and the sector, which employs 1 in 10 people on the planet, provides livelihoods for millions of people in developed and developing countries.

Is there a future for the sector?

The tourism sector can be called a chameleon to some extent because throughout its history it was able to adapt to any circumstances and shocks by introducing the necessary innovations. Even in the current situation, companies are looking for new approaches to bring the industry out of the crisis. The main problem is that as the borders open, the number of people infected with the coronavirus is growing. As a result, countries are forced to re-introduce local restrictions, which, in turn, negatively affects the economy.

How are things going now?

Today, European countries are trying to take all possible measures to restore tourism, but a new strain of coronavirus makes this task quite difficult. As a result, governments have to choose between keeping the population safe and saving the economy.

It seems that the choice is obvious … German Chancellor Angela Merkel proposed to ban UK citizens from entering EU countries due to the spread of a new delta strain of coronavirus in this country. The consequences of this decision will no doubt be a severe blow to the stocks of airlines, travel companies, and travel companies, as we saw this Monday. To be more precise, the shares of AIG (AIG), Rolls Royce (RYCEY), Whitbread (WTB.L), Booking Holdings Inc. fell. (BKNG), Meliá Hotels International, S.A. (MEL.MC) and InterContinental Hotels Group (IHG)

What’s next?

Considering that two doses of AstraZeneca or Pfizer are more than 80% effective in preventing Delta COVID-19 infection, according to a study by the University of Oxford, and over 44 million people in the UK have received at least one dose of coronavirus vaccine, the situation is looking more or less encouraging.

If the EU nevertheless tightens testing rules and introduces mandatory quarantines for those entering from abroad, it is likely that the shares of companies associated with the tourism industry will fall again. Will the UK lose out on this? Given the fact that the British will spend their savings domestically, this, on the contrary, will spur the country’s economy to grow.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210922 08:02:53