Golden Week boosts tourism sector shares early

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This year's "Super Golden Week," a combined eight-day period with both National Day and the Mid-Autumn Festival holidays, the increase of tourist-related stocks in the Chinese stock market has come earlier than before.

The national tourism bureau predicts the number of tourists will reach 710 million yuan and the tourism industry will generate 590 billion yuan revenue during the “Super Golden Week” holiday.

China Tourism Research Institute predicts that during the period, cross-provincial and cross-city travels will account for 36.7 percent of the population while suburban tours for 25.9 percent, up 5 and 7.2 percentage points compared with the same period of last year.

Industry experts say the residents travel enthusiasm is still high, in that people still show great interests in domestic travel, meanwhile overseas travel continues to grow quickly. Family tours in the countryside are also gradually becoming more popular.

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In previous years, dining and tourism stocks tended to rise as Golden Week ended, this year's dining and tourism sector shares have seen a downward adjustment in the past two weeks. However, this does not mean that the tourism sector is weakened. In fact, food and tourism sectors increased to a substantial scale in September.

According to Wind Data, a leading Chinese Financial Data Service Provider, as of September 15th, the CITIC index for dining and tourism had risen 9.39 percent, ranking 2nd in amount of increase among 29 industries. Overall, the dining and tourism sectors did better than the general stock market in September.

The leading tourism business company’s performance on the stock market also shows a new trend in tourism. The first half of 2017, Wuzhen Water Town under the Cyts Tours Holding Co., Ltd. (CYTS) achieved a net profit of 461 million yuan, an increase of 20.94 percent. CYTS’ Gubei Water Town (in the suburb of Beijing) reached 434 million yuan in revenue, an increase of over 42 percent.

Caesar tourism which offers overseas travel, had a net profit of 134 million yuan in the first half of 2017, up more than 136 percent from the previous year.

CITIC Construction Research reported that as the Baolan, Beijing and Xicheng high-speed rails and traffic routes continue to improve, tourist destinations alongside the routes will remain hot.

Experts also point out that the central parity of the yuan (RMB) exchange rate against the US dollar has remained strong, having a positive impact on travel abroad. It's expected to enhance overseas travel during the second half of the year.

According to the Eastmoney Securities Research Institute, the tourism industry chain which involves transportation, accommodation, catering, scenic spots and other fields, has contributed more than 10 percent to China’s economic development and employment so far. Over the next five years, the number of overseas Chinese tourists will reach 700 million.

(With inputs from Xinhua)