The spread of the virus in China puts the luxury sector under pressure: the coronavirus negatively impacts the values of luxury during the last sessions, like what happened in 2003 with the SARS epidemic in the region.
By Luxus Plus
Luxury goods have been roughed up on the Paris Stock Exchange since Tuesday, January 21, 2020. LVMH shares (owner of Les Echos Le Parisien Group, -3.30%), Kering (-3.37%) and Hermès (-2 , 20%) all three accused a sharp decline at the opening of the place, after the announcement of a fourth death in China related to a coronavirus still unknown.
The day before, LVMH and Kering had closed in the red, both accusing a loss of almost 2%, against 1.3% for Hermès.
Even if the weight of Chinese tourists is important in France, their absence at least until February 29 is not yet alarming, because it is the low season.
This is the direct consequence of the spread of the Coronavirus, which has left 80 people dead in China to date: the Chinese authorities have decided to ban the travel of tourists in groups from January 28, 2020, until 29 February 2020. A measure which could be extended depending on the health situation kamagra gel.
Only here, with 2.2 million visitors per year in France, according to Atout France, the national agency which promotes hexagonal tourism abroad, Chinese tourists represent a financial windfall. “If they represent 2.5% of total tourist traffic, they however total 7% of tourism revenue, that is to say 4 billion euros per year of expenditure”, decrypts Jean-Pierre Mas, the President of Travel Companies.
As for what will be the financial impact of the temporary cessation of tourist flights from China, it is too early to worry, say several professionals interviewed.
Because we are in low season. “There are only 100,000 Chinese tourists per month in winter, against 300,000 in summer,” said Jean-Pierre Mas. “Inevitably, this will create a lack of arrivals of Chinese tourists”, even if “February is not a huge month”, adds Christophe Decloux, the director general of the Tourism Committee of the region.
By 2003, the SARS epidemic in the region had resulted in fewer trips to Asia and around the world.
It had a negative impact on the turnover of luxury companies in the second quarter of 2003. Overall, over the period, sales had fallen by around 20% in Asia and by 10% in Europe.
Read also: Why Burberry is strengthening its presence in China
