Could the Webjet (ASX:WEB) share price be about to get a boost?

Key points

• The Webjet share price is still nearly 40% lower than it was before the pandemic began. That’s despite the broader market having arguably recovered
• However, light might have appeared at the end of the tunnel. The prime minister has seemingly flagged the end to many of Australia’s border restrictions
• International travellers from much of the world could be holidaying in Australia before Easter

Australia’s COVID-19 response has been a flurry of movement lately, but many travel shares like Webjet Limited (ASX: WEB) are still caught up in border chaos.

Now, an industry body is calling for international border restrictions to end. Simultaneously, the prime minister has signalled the government’s intent to open up as soon as possible.

At the time of writing, the Webjet share price is $5.17. That’s 39% lower than it was at the end of January 2020, just weeks before Australia’s international borders slammed shut to travellers in the wake of the COVID-19 pandemic.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently 1% higher than its final close of January 2020.

Australia’s international borders could soon be back to normal

The Webjet share price could be in for a boost in the near future as prime minister Scott Morrison reportedly said he’s “cautiously optimistic” about allowing all travellers back into Australia.

According to reporting by the Guardian, the prime minister told a press conference today he’s called on health officials to provide advice on the impact that opening the nation’s borders could have on the hospital system.

It was only days ago Morrison commented that the government hopes to welcome all international visitors back “well before Easter”. He told Cairns radio station 4CA:

[W]e’re just watching how Omicron is sort of washing over the eastern states at the moment, but with Omicron peaking, that then starts opening up opportunities… we’ve already got those backpackers and students coming back and we’re seeing arrivals now back into the country, you know, going back up very, very quickly.

But tourism and health bodies are calling for a faster restart to tourism.

The Australian Tourism Export Council (ATEC) released a statement today saying Australia’s border restrictions are “no longer a viable or sensible approach”. It said their unnecessary closure is impacting the recovery of industries including tourism, hospitality, and farming.

The body is calling for the federal government to announce a reopening date. ATEC managing director Peter Shelley stated:

Given every person arriving in Australia has to be fully vaccinated and tested, there simply is no greater health risk which would result from reopening our international borders, rather it would provide a huge relief to an already burdened and struggling tourism sector.  

Meanwhile, the World Health Organisation recommended nations remove travel bans last week. It argues they “do not provide added value and continue to contribute to the economic and social stress” during Omicron outbreaks.

Webjet share price snapshot  

Right now, the Webjet share price is flat with its final close of 2021.

Though, it is 2.5% higher than it was this time last year.

The post Could the Webjet (ASX:WEB) share price be about to get a boost? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Is February 2022 the time to buy these 2 beaten-up ASX shares?
• Are Virgin Australia shares set to rejoin the ASX soon?
• What might the WA border closure mean for the Webjet (ASX:WEB) share price?
• These are the 10 most shorted ASX shares

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/sMn0z3iCR