It's no new news that Coronavirus has had an impact on tourism, but here are some key takeaways:
1. States are reopening, but that doesn't mean tourism will return to normal.
By now it's obvious that life isn't going to be the same for quite some time-even after states are reopening. People are going to be much more cautious about going into places with large crowds- beaches, public transportation- even shopping malls. States and country's are "feeling the pressure" so to speak- summer in places like Florida, Europe, and National Parks around the world play major roles in tourism- Europe has promised to reopen for the summer tourism industry, even after they were a major epicenter for the virus. Some argue it's too soon to reopen, and reopening this early will lead to a spike in cases again. Others argue life has to return to normal at some point. It's still too early to tell if this will wreak another chaos-stricken outbreak, or if cases, which have turned to the other side of the graph peak will begin to die naturally- nonetheless, despite the negative-turning graph, cases are still rising in the USA, but at a much slower rate. States have been individually testing drugs and tests to help prevent or ease the symptoms of the Coronavirus- if a vaccine is found and distributed quickly, we may see a quicker return to normal life.
2. Tourism and Airlines stocks are still feeling the blow.
The news that tourism stocks fell on Coronavirus concerns is old. What's not old is the concerning comments from Boeing CEO, David Calhoun. A "major US carrier" will "most likely" go out of business this year. Calhoun goes on to say "Something will happen when September comes around. Traffic levels will not be back to 100%, they won't even be back to 25%. Maybe by the end of the year we approach 50%. So, there will definitely have to be adjustments that will have to be made by the airlines."
Here's a helpful chart to look at, thanks to YCharts and The Motley Fool, as of May 12. Further analyzing the chart, we see major US Airlines down from 51 to 75 percent in just over five months. In other news, despite tourism stocks on the downturn, futures point up almost 300 points after the Chair of the Federal Reserve, Jerome Powell says to not "bet against the American Economy." For more info on this statement, and stock market updates, be on the lookout for a BizRoca article going up later today.
Summary: Even though states are reopening, the tourism industry will still be in a tough spot; people are going to be cautious of where they go, and things will not return to normal until right away- at least not until a possible vaccine is found and distributed. States and countries are worried of the effect the virus will have on their summer tourism industry, and places like Europe have made bold promises to reopen for Summer. Tourism and airline stocks are still feeling the blow, especially after a worrisome statement from the CEO of Boeing, David Calhoun. Futures point up almost 300 points.
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