August 14, 2023: China lifts prohibitions on group outings to U.S., Japan, and other key markets, which improves travel and airline stock.

On Thursday, China’s culture and tourism ministry said that group tours will resume over dozens of Asia-Pacific, Europe, Africa, and North American locations.

Top travel destinations in Asia-Pacific such as Japan, South Korea, and Australia. The United Kingdom, Germany, Sweden, and Middle East nations which include Qatar, Oman, Lebanon, and Israel.

South Korean airline and travel stocks saw the strongest reaction, with tour agency, airline, and hotel stocks all streaming.

Travel agency Lotte Tour Development saw its shares spike more than 25%, while shares of luxury hotel operator Hotel Shilla surged 17%.

South Korea’s airlines and tourism plays surgeon reports China will allow group tours. However, Typhoon Khanun made landfall in South Korea on Thursday, resulting in more than 330 flights being canceled and 10,000 people being moved to safety, according to Reuters.

It will be the first time in six years that China is allowing group tours to South Korea, having banned such terms in response to deploying the Terminal High Altitude Area Defense system in South Korea in 2017.

Japan tourism stocks also witnessed gains, with Japan Airlines and All Nippon Airways climbing 1.92% and 1.25%, respectively.

Shares of Japanese travel agency H.I.S. increased 3.4%, while its counterpart Airtrip was 2.9% up.

In Australia, travel stocks were little changed, with national carrier Qantas just marginally above the flatline.