Travel stocks plummeted worldwide following last Friday’s terrorist attacks in Paris, with travellers expressing great anxiety flying through France and flying in general. Industry analysts remain optimistic, saying they do not expect the impact to last long.
The stocks fell after the traumatic Paris event that took 129 lives and wounded over 350 innocent civilians.
Shares in French travel firms including Accor SA and Air France took the biggest toll, reports Fortune. But travellers have expressed anxiety worldwide, as international airlines and hotel groups such as Delta, American Airlines and Hilton dropped their shares drastically.
Most stock markets fell across Asia, according to Travel Weekly, with airlines and travel-related firms among the most affected.
“Whenever there’s terrorism, businesses are affected. Worst hit are commerce and tourism, and as a consequence, airlines,” said Shukor Yusof, an analyst with aviation research firm Endau Analytics, reports Travel Weekly.
Haitong Securities analyst Zhang Qi told AFP that the affect tragedies like the Paris attacks have on the stock market is mostly psychological.
Even so, Hong Kong-based financial analyst Kevin Tam said the actual impact on travel industries will be small due to the geographical concentration of the tragedy.
Travellers’ anxieties over the Paris attacks come as the industry is still struggling to cope with the Egyptian plane crash, which killed all 224 people on board October 31. For now, many questions remain, with impacts on French tourism to become clearer in the coming days.