Coronavirus: Advocacy for targeted quarantines as travel agencies feel the pain of second wave | Economic news


Vacation company TUI has called on the government to take a regional, rather than national, approach to imposing coronavirus quarantine measures after canceling flights to mainland Spain.

The company’s UK chief executive, Andrew Flintham, told Sky News that a more ‘nuanced’ stance should be taken after ministers gave just hours’ notice of the decision to force a 14-day isolation period on people arriving in the UK from all over Spain, citing a pic COVID-19[feminine[feminine case.

Figures from Spanish authorities suggest clusters of infections in Barcelona and elsewhere on the mainland, but relatively few cases on its islands – also popular with tourists.

Growing fears of a second wave of coronavirus infections hit financial markets on Monday with the cost of gold, a traditional safe haven for silver in times of turmoil, hitting a record high of $ 1,927.90 per ounce.

It also weighed on companies exposed to the travel market – stocks that suffered the most when investors got scared at the start of the crisis in Europe in late February.

Frankfurt-traded TUI shares were 15% lower in early trades, while easyJet plunged 14%.

Epidemics in Spain “perfectly under control”

IAG, owner of British Airways, fell 9% Ryanair, which had warned of a lack of clarity over the coming months hours earlier, saw its shares drop 8%.

The biggest fear for investors in such companies is that governments will be forced to restrict movement more widely – forcing airlines and vacation operators to gradually return to normal.

With that in mind, Mr Flintham said it would be helpful to have regional travel advice for countries, as opposed to a one-size-fits-all approach.

He told Sky’s Kay Burley @ Breakfast program: “If the Balearics are always ready to go, and the advice to travelers is clear that you can travel, should we have a different quarantine or no quarantine for those? and not group everything together as in one great total quarantine of Spain? ”

TUI said it has approached the British government on this point.

Angry tourists come out of quarantine

Mr Flintham added: “We really want a little nuance because, let’s be honest, moving forward somewhere like the United States, there might be a problem in Florida and not California and you wouldn’t want to close the whole of the United States to tourists. ”

Julie Palmer, partner at recovery specialists Begbies Traynor, said of the renewed stock price reaction: “Quarantines, falling consumer spending and the anxieties of being in a confined space with others. have all pushed the airline industry to dive into the nose.

“While these heavy losses can be expected, the real problem is what will happen. Several airlines can survive for several months due to high cash stocks, but massive travel disruptions caused by countries that experience waves at different times will have this industry tied. in knots for months.

“With the UK government quarantining Spain this weekend in the short term, that implies it could happen to travelers to and from other countries.

“Such unpredictability will make vacationers think twice before traveling. Airlines and vacation companies will have to do a big chunk on travel safety before vacationers feel completely safe to travel again, but they will have to be quick or we could see more airlines. in distress before the end of the year. “


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