The Impact of Travel Bans during COVID-19: A Financial Perspective from European Stock Markets

Abstract

This study explores the financial implications of travel bans implemented during the COVID-19 pandemic, with a specific focus on European stock markets. The global pandemic led governments to impose unprecedented travel restrictions, which significantly impacted various industries, particularly tourism, hospitality, and aviation. The research question investigates how travel bans influenced market volatility, investor behaviour, and overall stock market performance in Europe. The methodology employed in this study is qualitative, combining an extensive literature review with analysis of market data and expert insights. Data was gathered from academic sources, financial reports, and industry analyses to understand the broader economic context. The study delves into investor responses and market trends in the face of travel bans and the subsequent economic downturn. Results reveal that European stock markets experienced substantial volatility, with heightened investor uncertainty and sector-specific declines. Countries like Italy, Spain, and the UK were particularly affected. The study concludes that while travel bans were necessary for public health, their economic and financial repercussions were significant, underscoring the need for coordinated policy responses and enhanced risk management in future crises.