Luxury stocks surged at the Paris stock exchange throughout the weekend after China lifted its longstanding travel ban on group tours to more than 70 locations on Thursday, August 10.
LVMH led the pack by closing the day with a 3.4 percent gain to reach a valuation of 834.70 euros, while Hermès International’s stock climbed 3.2 percent to 1,960.20 euros. Other luxury French stocks that saw gains included Dior couture, with a 2.7 percent gain to 781.50 euros, and Kering with a 2.2 percent rise to 528.40 euros.
China’s Ministry of Culture and Tourism announced Thursday that it had ended its ban on group tours to 78 locations in the Asia-Pacific region, Europe, North America, and Africa following measures taken to stop the spread of the coronavirus in early 2020.
Chinese group tour can now visit the U.S., Japan, South Korea, the U.K., German and Australia, among other locales. The country transitioned away from its zero-covid policy in December 2022, allowing for group tours in 20 countries. The number was expanded to 60 in March of this year, and now has reached 78.
As a major percentage of luxury purchases from China were made while traveling abroad pre-pandemic, the bump in valuation comes as a response to expectations of increased international spending from members of the Chinese market.
