Many S&P/ASX 200 Index (ASX: XJO) travel shares soared today amid news the calamity resulting from the Omicron COVID-19 variant hasn't dinted Australian consumer confidence.
The latest findings from Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Roy Morgan showed consumer confidence increased 0.4% last week – its third consecutive weekly gain – despite rising Omicron cases.
Additionally, the Reserve Bank of Australia (RBA) noted similar observations earlier this month.
The minutes for the RBA monetary policy meeting stated the variant increased uncertainty around international travel in November but didn't impact long-term outlooks.
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ASX 200 travel shares took to the skies on Tuesday
ASX 200 travel shares were among the winners on Tuesday, with the Flight Centre Travel Group Ltd (ASX: FLT) share price leading the pack. The travel agent's stock gained 3.89%.
Meanwhile, that of Webjet Limited (ASX: WEB) increased 3.17% and Qantas Airways Limited (ASX: QAN) ended the day 0.84% higher.
For context, the ASX 200 Index gained 0.86% today.
Consumer confidence and travel outlook unchanged by variant
Consumer confidence soared 4.8% in New South Wales last week and Victoria recorded a 1.1% spike. However, all other states reported modest falls. The gains came despite increasing numbers of new Omicron cases.
According to ANZ senior economist Adelaide Timbrell, lower rates of hospitalisations associated with the Omicron variant likely helped consumers' outlooks.
Right now, 32% of Australians say their families are better off than they were this time last year. At the same time, 38% say they expect their family will be better off financially this time next year.
Meanwhile, the RBA believes the outlook for travel and education exports improved over November.
Additionally, it predicted education exports will contribute to Australia's GDP in the coming years.
Though, the RBA board noted the Omicron variant had "clouded" near-term outlooks. Particularly, as it could lead to travel hesitancy.
What else might have driven travel shares higher?
Potentially also buoying ASX 200 travel shares is the easing of restrictions for international arrivals.
As of today, those arriving in New South Wales and Victoria from overseas no longer have to isolate for 72 hours.
Instead, they only need to isolate until they test negative for COVID-19.
All arrivals must receive a COVID-19 test within 24 hours of landing. Additionally, travellers to Australia have to be tested for COVID-19 within 72 hours of boarding their flight.
Speaking on the newly relaxed rules, New South Wales Premier Dominic Perrottet commented:
We know it has been a challenging time for international travel with new rules and the emergence of the Omicron variant, but this announcement is about simplifying the process and making sure Australia's two biggest cities have a consistent approach.
New South Wales also upped the penalty for disregarding isolation, testing, and quarantine requirements. Noncompliance now risks fines of up to $5,000 for individuals and $10,000 for corporations.
