Stocks surge in Japan, S Korea after China announces relaxation in curbs for group tour to 78 nations

Tourism-related stocks in Japan and South Korea surged on Thursday (August 10) after China announced it would relax Covid pandemic-era restrictions on tour groups travelling to dozens of countries, the Financial Times reported. On Thursday, the Chinese tourism ministry said it was lifting restrictions on group travel to 78 countries which included Japan, South Korea, the United States (US), and the United Kingdom (UK).

As per the Financial Times report, shares in department stores in Tokyo climbed sharply, while those of Japan Airport Terminal rose by more than nine per cent. Kyoritsu Maintenance, which runs a hotel chain favoured by mainland Chinese tourists, gained over 11 per cent, the report added.

In South Korea's capital city Seoul, shares in Lotte Tour Development rose to nearly 30 per cent, and shares in Paradise Group were rallying more than 18 per cent. Shares of AmorePacific, a cosmetics conglomerate, increased seven per cent.

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The report also said that airline stocks in China, Japan and South Korea, rose between one and five per cent.

Since the onset of the pandemic in 2020, China had mostly closed its borders to international travel for almost three years. However this year, the government resumed flights to 62 countries, 10 fewer than before.

On Thursday, South Korea's Culture and Tourism Minister Park Bo-gyoon said the resumption of Chinese tour groups would breathe new life into airline and retail sectors damaged by the pandemic.

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