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When Will Travel and Tourism Recover?

While the COVID-19 shock is severe in the near term, we think it will be temporary.

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Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.

Previous epidemics or recessionary events have depressed travel demand for four to seven months before beginning to recover, according to Dufry (DUFN) and Amadeus (AMS). As discussed in "Morningstar’s View: The Impact of Coronavirus on the Economy," aggressive containment measures with an immediate severe economic impact could help contain the virus spread, leading to lesser long-term negative economic implications.

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Dan Wasiolek does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.