FRANCE: Tourism Stocks Take A Hit After Paris Attacks

Increased security at all Europe’s airports, including Paris’ Charles de Gaulle, will lead to flight delays and further security tension, as flights are also fully booked.

The deadly attacks in Paris, Friday 13 November, occurred at the tail end of the peak season for Asians travelling to Europe. The Islamic State group claimed responsibility for the attacks.

Morakabati said the Middle Eastern resort areas popular with Europeans on holiday are more likely to see declines than European destinations, following both the Paris attacks and what Russian officials said was an October 31 bomb attack on a Metrojet airplane leaving Egypt that killed all 224 people on board. “It’s so sad that such a handsome country has been the site of so many wars… and now this”, a retired Midwestern school teacher said. Many consumers are likely to find themselves facing stiff penalties if they try to cancel flights and other travel plans.

Travelers we spoke with today said they’re not canceling their plans but it does change how they travel.

Several airline stocks descended Monday amid fears that the Paris terrorist attacks could make people reluctant to travel, but history indicates that any decline is likely to be short-lived.

“In terms of companies curtailing trips to Paris, my guess is that the business imperative to grow the business means that in six months they’ll be rowing back to France”, said Charlie Burbridge, head of risk consulting at security advisory firm G4S Plc.

“Some policies require that the city – in this case Paris – be on the traveler’s itinerary, or that a city within a specified distance, often 50-100 miles, is on their itinerary”, the spokesperson said.

Though travel insurance policies vary widely, many do cover acts of terrorism as long as the insurance was purchased before the incident.

Is it safe to travel to Paris, France?

Several airlines have issued fee waivers for customers who wish to postpone trips.

Cancel For Any Reason is only available as an upgrade within 14-30 days of their initial deposit date, requires the traveler to insure their entire trip cost, will only reimburse up to 75% of the traveler’s trip costs, and requires the traveler cancel their trip at least 48 hours before their departure date, he said.

Trading in global tourism, airline and travel companies took a hit on Monday as investors got their first chance to react to the Paris attacks.

In addition to a coordinated political and military response to the latest atrocities by the French government, the travel industry and its stakeholders “will now need to work together to ensure that crisis management systems are in place and also send a clear marketing message to the rest of the world that Paris is open for business”, she added. “It’s going to hurt the travel industry, the hotels, the airlines, the restaurants”.

“This happened at a relatively low season so the really critical thing will be how does this affect things next summer when travellers go to Europe?” asked David Tyerman, transportation analyst at Canaccord Genuity.

Paris was turned into a battle zone and over the coming months security officers will be on the alert and checks at airports throughout Europe will be more stringent than ever.

Hongkongers living in Paris are determined to stay – despite warnings of more possible attacks in the French capital.

Disneyland Paris will be closed through Tuesday as part of France’s three-day national mourning period.