Bruno Joly
Oct 12, 2014
Luxury: Berenberg points to limited risk of Ebola
Bruno Joly
Oct 12, 2014
It's a note from Hamburg that has raised the question. The German bank Berenberg has released "Luxury - the Ebola virus: limited risks, but risks nonetheless."
According to analysts from the Hamburg-based company, the risk is real in terms of a negative impact on tourism and business tourism, beginning with stricter sanitary measures adopted in five American airports.
"From our perspective, the decline in tourism flows could affect retail travel sales, one of the fastest growing distribution channels in the luxury, cosmetics and spirits sector,” according to the broker.
Likewise, Berenberg estimated that 50% of luxury sales in Europe are generated by tourists and non-residents. A share that risen to 60% in France and 55% in the United Kingdom. It’s a sector that accounted for no less than 11 billion euros in Paris in 2013, 9 billion in London and over 21 billion in New York.
As a comparison, Berenberg points to the negative impact of SARS, which prevailed in the early 2000s in Asia.
During 2003, the SARS (severe acute respiratory syndrome) outbreak caused a 6.5% decrease in passenger traffic between January and July. Meanwhile, according to Berenberg’s index, luxury sector business dropped by 23%, even if it did recover very quickly.
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