Tourism stocks tumble amid Chinese tourist fears
Thai tourism stocks took a hit this morning as concerns mounted over a potential decline in Chinese tourist arrivals during the Chinese New Year. The drop follows revelations about a Chinese actor, Wang Xing, who was found in Myanmar and is suspected to have been a victim of human trafficking. This incident has cast a shadow over Thailand’s safety reputation.
Leading the decline was Minor International Public Company Limited (SET: MINT), which fell by 4.07% or 1 to 23.60 baht, with a trading value of 606.73 million baht. Bangkok Airways Public Company Limited (SET: BA) dropped by 1.89% to 20.80 baht, while Asia Aviation Public Company Limited (SET: AAV) and S Hotels and Resorts Public Company Limited (SET: SHR) both experienced declines of 1.63% and 1.89%, respectively.
DAOL Securities (Thailand) flagged concerns raised by the Association of Thai Travel Agents (ATTA) about a possible 10 to 20% drop in Chinese tourist arrivals during the peak holiday period. Weekly arrivals, which averaged 181,080 during the Chinese New Year last year, could decline to between 145,000 and 163,000 this year. This could bring the total number of Chinese tourists in 2025 to 8 million—an annual increase of 19%, but lower than earlier projections.
Analysts noted that stocks heavily reliant on Chinese tourists, such as MINT, ERW, CENTEL, and SHR, are likely to feel the brunt of the impact. However, resilient growth in arrivals from India and Europe is expected to offset some losses.
DAOL Securities remains optimistic about the tourism sector, maintaining an “overweight” rating and recommending BUY for AAV, CENTEL, and MINT, with target prices of 3.60 baht, 44 baht, and 34 baht, respectively. While challenges loom, the broader tourism recovery is projected to drive Thailand’s overall arrivals to 39 million in 2025, a 10% increase year-on-year, reported Kaohoon International.
Despite the potential drop in Chinese visitors, Thailand’s economy is set to light up like a firecracker this Chinese New Year, with spending forecast to rise by over 3%, according to the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce.
Latest Thailand News
