Expansion of COVID-19 Vaccination... Travel Stocks Already Excited

Lotte Tour Development and Paradise Reach 52-Week Intraday High on 24th
Interpark Surges 125% Since Start of Year

[Asia Economy Reporter Ji Yeon-jin] As COVID-19 vaccination expands, travel stocks have recently been strong. While the domestic stock market has continued to adjust due to inflation concerns, travel-related stocks reflecting expectations of economic recovery following the end of the pandemic have been on a rising rally since the beginning of the year.

According to the Korea Exchange on the 25th, Lotte Tour Development closed at 20,100 KRW, up 4.69% (900 KRW) from the previous day, even as the KOSPI fell below the 3,000 mark the day before. During the session, it traded at 21,560 KRW, setting a new 52-week high.

Lotte Tour Development has risen 32.67% compared to the beginning of the year, with a 20.36% increase just this month. This is higher than pre-COVID-19 levels. Cham Joeun Travel and Hana Tour also rose 17.56% and 13.6%, respectively, based on the previous day's closing price this month. Interpark, a travel reservation site, surged 125.69% compared to the start of the year. Paradise, which operates casinos and hotels, reached a 52-week high of 18,000 KRW during the previous day's session. Although airline stocks Korean Air and Asiana Airlines have shown a downward trend this month, their stock prices have risen 34.43% and 16.67%, respectively, compared to the beginning of the year.

Travel stocks were among the hardest hit industries when the global COVID-19 pandemic began last year. Overseas travel was virtually halted due to quarantine measures for inbound travelers in various countries, causing both earnings and stock prices to plummet. Lotte Tour Development’s operating profit decreased by 329.8% last year, and its stock price fell to 6,800 KRW in March during the major market crash.

However, the mood changed starting in December last year as global COVID-19 vaccinations began. As investment funds betting on economic recovery poured in, stock prices followed an upward curve. In particular, news that self-quarantine for Chinese entrants to Macau would be lifted starting on the 23rd led to a sharp rise in domestic travel stocks the day before. Analyst Lee Hyo-jin of Meritz Securities said, "The travel industry and casinos underwent large-scale restructuring due to COVID-19 damage," adding, "Package operators (Hana Tour, Modetour, Cham Joeun Travel) that reduced fixed costs through natural restructuring and subsidiary liquidation will be able to enjoy high leverage when travel resumes."

This content was produced with the assistance of AI translation services.