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(Sharecast News) - The German government intends to lift a travel warning for tourist visits to 31 European countries from mid-June if the Covid-19 situation allows, according to reports.
A paper on European tourism to be put to the German cabinet on Wednesday shows the government favours allowing travel to the 26 other EU countries plus the UK, Iceland Liechtenstein, Norway and Switzerland, Reuters reported citing German media.
Travel company shares jumped on Tuesday morning. EasyJet rose 11.9% at 08:58 BST and British Airways owner IAG surged 15.7% to 221.10p. Ryanair gained 8.9% to 11.58 euros. TUI shares rose 31% to 395.20p in London and InterContinental Hotels gained 12.9% to £41.17.
Germany's foreign minister Heiko Maas said on 18 May that the government hoped to ease a travel warning on all tourist trips abroad that is in effect until 15 June.
"Travel and leisure are leading the charge today," Neil Wilson, chief market analyst at Market.com, said. "There is a lot more hope that travel restrictions across Europe will be eased in time for the summer holidays. Strength in this sector underscores confidence among investors that economies are reopening, and consumers are keen to travel."
German media also reported that the government plans to ease social distancing measures from 29 June, a week earlier than planned.
Chancellor Angela Merkel is in talks with 16 state premiers about finding a balance between public health and relaxing lockdown restrictions with Europe's biggest economy in its deepest recession since the second world war.
Merkel has urged caution about relaxing restrictions. Germany's death rate from Covid-19 is relatively low at about 8,300 so far despite a high number of cases.
3 Oct 2023 10:55
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