When Will Travel and Tourism Recover?
While the COVID-19 shock is severe in the near term, we think it will be temporary.
|Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
Previous epidemics or recessionary events have depressed travel demand for four to seven months before beginning to recover, according to Dufry (DUFN) and Amadeus (AMS). As discussed in "Morningstar’s View: The Impact of Coronavirus on the Economy," aggressive containment measures with an immediate severe economic impact could help contain the virus spread, leading to lesser long-term negative economic implications.
Dan Wasiolek has a position in the following securities mentioned above: AAPL. Find out about Morningstar’s editorial policies.