The AdvisorShares Hotel ETF (BEDZ) increased 3.9% on Friday.
Meanwhile, Norwegian Cruise Line Holdings shares gained 7.6% and Carnival Corp shares rose 7.4%. BEDZ includes a 3.2% position in NCLH and 2.4% in CCL.
Norwegian Cruise Line Holdings Ltd. and other cruise line stocks climbed Friday after the U.S. Senate passed legislation to help companies resume trips to Alaska, a key destination for the industry during the North American summer, Bloomberg reports.
The legislation tries to get around Canada’s ban on cruises until 2022, which was implemented combat the ongoing global Covid-19 pandemic. According to maritime law, foreign-flagged ships are restricted from transporting passengers between two U.S. ports, so Alaska voyages under a foreign ship would have to make a stop in Canada.
While the new legislation has passed through the Senate, the bill still requires approval from the House of Representatives and a signature from President Joe Biden to allow for a temporary waiver to the foreign-port stipulation. The bill would expire in March 2022, or when Canada lifts its restrictions on cruise ships.
The latest legislation adds to an upbeat outlook after a year of pandemic-induced shutdowns has taken a particular toll on the leisure and travel industries. Last week, the Centers for Disease Control and Prevention outlined a plan for companies to return to sea if most guests and crew are vaccinated or the ships prove safety measures are in place.
The vaccination efforts and decline in coronavirus infection rates have allowed for some major changes for the government and businesses. The CDC has already stated that vaccinated people in the U.S. will no longer need masks in most circumstances.
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