KGI Securities maintains a “Overweight” rating on Thailand’s hotel sector, citing the positive outlook for tourism in 2023, and several indicators pointing to clearer signs of recovery in the number of Chinese tourists ahead, such as the continued relaxation of Covid-19 measures for international arrivals and the return of Chinese group tours. Meanwhile, the recent increase in daily Covid-19 infections in some nations should have little impact on global tourism sentiment.
KGI said in a note on Friday that the current top picks are The Erawan Group (SET: ERW) (TP: THB5.10) and S Hotels and Resorts (SET: SHR) (TP: Bt4.90).
KGI forecasts a 4 million increase in Chinese tourist arrivals in 2023 (returning to 36% of the pre-Covid level). Meanwhile, the country’s tourist arrival projections for 2022/2023 remain unchanged at 11 million/25 million. The short-term forecast remains positive, with KGI projecting 5.4 million tourist arrivals in 4Q22, up from 3.6 million in 3Q22.
