With the opening of the peak season for summer vacations, how does the market view the tourism stock market? The number of long-distance travel orders in many regions increased by more than 20% year-on-year. What are the directions with high demand?
On July 3, the tourism sector of the Hong Kong stock market saw an upward trend, with China Tourism Group Duty Free Corporation, the leader of the sector, rising more than 16% at one point.
As of press time, China Tourism Group Duty Free Corporation (01880.HK) is still up more than 13%, Meilan Airport (00357.HK) is up nearly 7%, Wanda Hotel Dev (00169.HK) is up 3%, Fosun Tourism (01992.HK), Ctrip Group-S (09961.HK), and H World Group (01179.HK) are all up more than 1%.
On the news front, Ctrip Group released the "2024 Summer Tourism Market Forecast Report," which showed that the domestic tourism market maintained steady growth this summer, with hotel and airline ticket searches both up more than 20% year-on-year. The report predicts that the end of June to early July, mid-July, and mid-August will be the three high seasons for summer travel.
On June 24th, the Ministry of Culture and Tourism, together with the National Development and Reform Commission and other departments, issued the "Measures for Creating New Consumer Scenes and Cultivating New Growth Points of Consumption" to propose multiple measures to cultivate new scenes of cultural, tourism and sports consumption.
With the help of policy support, the prosperity of the tourism industry has been further improved, and the data for summer tours is particularly impressive.
According to a report from the China Aviation Securities Social Service Team, long-haul tours are the main force for summer travel, with tourism orders in the northeastern and southwestern regions increasing by 40% and 25% respectively year-on-year, while tourism orders in the northwestern region also increased by more than 20% year-on-year. At the same time, tourism orders in fifth-tier cities increased by 34% year-on-year, and those in county-level areas increased by 22% year-on-year.
On the other hand, due to the continued promotion of visa-free policies, the continuous recovery of inbound and outbound tourism has also become an important factor driving the prosperity of the tourism sector.
Data shows that after China implemented visa-free and 72/144-hour transit visa-free policies for many countries around the world, inbound tourism orders this summer have doubled year-on-year. In addition, with the Paris Olympic Games and other events boosting demand, outbound tourism during the summer is also in high demand.
According to data from Tongcheng, the average price of international flight tickets departing from mid-June to early July has risen by nearly 50% month-on-month. It is expected that the relative high pricing of international flight tickets in late July to early August and the larger increase in ticket prices on popular routes compared to weekdays will be significant.
The Social Services team at Minsheng Securities also noted in a recent report that the development trend of inbound and outbound tourism driven by the implementation of visa-free policies will gradually improve, and the industry's prosperity will rapidly improve, easing market competition with the market expansion.