6 months ago, the global tourism industry was celebrating a record year for travel, now who knows. According to an article by Dee-ann Durbin of the Associated Press, Tourism Economics predicts global travel demand will not resume what was considered normal until 2023.
If you watch YouTube there are multiple events where people gather to people watch, see older cities and mix and mingle with other people. It is very hard to do if people have to stand apart for 6 feet;
Airlines have grounded 2/3’s of their planes and cruise ships are docked some will not sail until November. Millions of people who depend on tourism are laid off or furloughed, in the US the number is estimated to be 8 million plus (about 1/3 of total US unemployment).
Alexandre de Juniac. CEO of the International Air Transport Association, the leading airline trade group said carriers need to fill at least 70% of the seats to break even on most flight. If they are are required to block seats – 2 choices do not fly or raise prices 50%.
Linking to dividend paying stocks, all of us work to enjoy more leisure time, but is it safe to go? The summer months are coming and that is when most of enjoy some sense of leisure, do you believe the theme parks are going to be filled? when you consider your pent up plans – do they measure what you see in the economy? Prior to the virus, tourist stocks were great performers, how things change.
There are more questions than answers, till the next time – to raising questions.