Outbound travel from China is booming ahead of the Golden Week as bookings for popular international destinations surged tremendously from last year’s Golden Week.
Despite economic data showing growth slowing down, Chinese are looking to enjoy their first Golden Week since the Covid-19 pandemic that restricted people in China to travel outside their areas, let alone foreign countries.
According to the report from Trip.com, bookings for popular destinations such as Singapore, Australia and Thailand rose 20 times compared to the Golden Week last year.
Golden Week is a 7-8 holiday, starting from the first day in October, when Chinese celebrate their National Day. This year holiday starts from Oct 1, 2023 – Oct 7, 2023.
Thailand, which is one of the targeted destinations for Chinese tourists, recently announced visa exemptions for Chinese and Kazakh tourists as part of the government’s measure to spur tourism in Thailand. The scheme kicked off on September 25, 2023 and will continue on until February 29, 2024.
Analyst from Krungsri Capital Securities Mr. Koraphat Vorachet, said the visa exemption policy, together with the depreciation of the Thai Baht, will benefit Thai tourism-related equities. He believes it will undoubtedly attract more Chinese tourists into the country. Notable stocks that will benefit include AAV with a target price of THB 3.64, AOT with a target price of 85.25, ERW with a target price of THB 6.60, SPA with a target price of THB 15.20, CPALL with a target price of THB 76 as well as CPAXT with a target price of THB 38.
