The Impact of Cross-Border Travel Restrictions on Financial Performance: A Capital Market Perspective from ASEAN Countries

Abstract

In a globally interconnected economy, cross-border travel restrictions, particularly during the COVID-19 pandemic, significantly disrupted industries reliant on mobility and trade. This paper explores the financial implications of these restrictions, focusing on their effects on capital markets in ASEAN countries. By examining sector-specific performance, including tourism, aviation, and export-driven industries, the study evaluates how travel limitations impacted market volatility, investor sentiment, and regional economic stability. Employing a qualitative approach and in-depth literature analysis of capital market trends, the research delves into the correlations between travel policies and stock performance to uncover critical insights into market resilience. Key questions addressed include: How did cross-border restrictions alter capital flows within ASEAN markets? What recovery strategies have industries and policymakers adopted to mitigate financial disruptions? Findings reveal that while travel restrictions posed significant short-term challenges, they also prompted adaptive responses, such as digitalisation and diversification, which strengthened market resilience over time. The analysis underscores the necessity of regional cooperation and policy harmonisation to navigate such disruptions effectively. This paper contributes actionable recommendations, including enhancing cross-border investment frameworks, fostering public-private partnerships, and leveraging technology to build financial robustness. By illuminating the interplay between travel policies and financial performance, the study offers critical insights for policymakers, investors, and business leaders seeking to fortify ASEAN economies against future shocks while advancing sustainable economic growth.