Key Sectors Set To Recover As Lockdowns Ease

May 28, 2020

With the majority of the world under some sort of lockdown or quarantine, recreational travel has all but ground to a halt. In the United Kingdom, international arrivals will have to adhere to a government-enforced 14-day quarantine from June 8.

Italy intends to reopen its borders for tourism in June, and Greece, Spain and Portugal have similarly indicated an easing of border restrictions within the next two months. Travel stocks have risen on the back of this news, with TUI gaining an impressive 38%. IAG and easyJet also saw double-digit growth, particularly amidst the news that the German government will be bailing out airline carrier Lufthansa.


Another victim of government sanctions, many countries have elected to place restrictions on places of socialisation. Unsurprisingly, bars and restaurants were caught in this crossfire. Although some have remained open on a takeout basis, many remain closed until further notice, and it is expected that they will remain somewhat restricted even after economies begin to reopen.

Switzerland, an early reopener, has allowed its bars and restaurants to open on a social distancing basis as of May 11th. Similarly, the United States has begun to reopen its restaurants on a state by state basis, again with social distancing measures in place.

The FTSE 350 Travel & Leisure index, an indicator of the UK’s largest consumer stocks, rose 7% as of May 26th, thanks largely to pub chains and cinemas; Cineworld, for example, rose 23%.


Although marketing is not targeted directly, it is struggling under the weight of budget cuts, particularly in the luxury industry. As stores shutter their windows and consumers remain indoors, the marketing budget of many high street retailers has been slashed.

In the UK, all non-essential shops are allowed to reopen on June 15th, which could allow a return to form for many marketers as foot traffic will soon resume on the high street.

With consumer spending on the brink of a return, the FTSE 100 rose 1.56% and even the pound rose 0.6% against the dollar, as of May 26th.

If the current market sentiment is anything to go by, consumers are eager to return to normality, and stocks will continue to rise until they eventually reach pre-pandemic levels.