Travel stocks were waffling Wednesday, despite the U.S. announcing it was opening its land borders to fully vaccinated travelers from Mexico and Canada next month.
The move reboots non-essential car, rail and ferry travel, which was suspended for 19 months due to the Covid-19 pandemic. Travelers will need to show proof of vaccination at the port of entry, and will be subject to a secondary screening process at officers’ discretion. Proof of a negative Covid-19 test won’t be required providing visitors have been vaccinated.
“Cross-border travel creates significant economic activity in our border communities and benefits our broader economy,” said Secretary of Homeland Security Alejandro Mayorkas in a statement.
More than 370.2 million people crossed the Mexican and Canadian borders in 2019, according to data from the Department of Transportation. In 2020, the number of land border crossings dropped to 200.5 million.
The market had a mixed reaction to the news.
Tech-focused travel companies were mixed on Wednesday. The
ETFMG Travel Tech ETF
(ticker: AWAY) slipped 0.04%. Online booking company
(TRIP) saw a 0.5% increase and online home rental giant
(ABNB) gained 0.2%. The tech-heavy
composite was up 0.35%.
Other staples of the hospitality industry, which were rising in premarket trading, weren’t faring as well. Major hospitality chains such as
MGM Resorts International
(MAR) were trending lower. The
U.S. Global Jets ETF
which tracks airlines, lost 2.2%.
Dow Jones Industrial Average
was down 0.46%, while the
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