By Joy Yang, Global Head of Index Product Management
According to the United Nation's World Tourism Organization (UNWTO)1, 2020 was the worst year in tourism history. Approximately 1 in 10 people worldwide work in the tourism sector. The impact of the pandemic has put 100-120 million jobs at risk, with an estimated $1.3 trillion loss in export revenue due to international tourist arrivals decline of -87% percent in January 2021 (Asia and the Pacific -96%). According to the UNWTO's estimates, it will take the industry between 2.5 and 4 years to return to pre-pandemic levels of international tourist arrivals.
The MVIS BlueStar Travel and Vacation Index (ticker: BTOUR), an index providing exposure to the global tourism industry, fell by -50% (USD Net Total Return) during Q1 2020, but has since recovered with YTD performance +92% (USD Net Total Return) ending 18 May 2021.
"This crisis is an opportunity to rethink the tourism sector and its contribution to the people and planet; an opportunity to build back better towards a more sustainable, inclusive and resilient tourism sector that ensure the benefits of tourism are enjoyed widely and fairly." said Zurab Pololikashvili (UNWTO Secretary-General).
MVIS BlueStar Travel and Vacation Index
Source: MV Index Solutions. All values are rebased to 1,000. Data as of 18 May 2021.
Joy Yang is Global Head of Index Product Management at MV Index Solutions (MVIS). She is responsible for managing MVIS products and services to accelerate innovation in financial index design and adoption. Joy brings more than 25 years of investment experience to MVIS, having led teams delivering index and quantitative-active investment solutions at Arabesque Asset Management, Dimensional Fund Advisors, Vanguard, Aberdeen Standard Investments, AXA Rosenberg and Blackrock. Joy has an MBA from the University of Chicago Booth School of Business, and a BS in Electrical Engineering from Cooper Union’s Albert Nerken School of Engineering.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.