Thailand saw 11.4 million foreign tourist arrivals so far this year, with spending of THB472 billion; analysts expect this trend to continue for the rest of the year, supported by resumed passenger flights, which is positive for the hotel sector.
The Thai tourism ministry reported on Tuesday that the country had seen 11.4 million international visitors from January to June 11, 2023. In comparison, the total number of tourists who visited the country in 2022 was 11.15 million.
KGI Securities anticipates this trend to continue for the remainder of the year due to the resumption of passenger flights, while maintaining the tourist arrivals assumption for 2023 at 28 million. The brokerage firm forecasts that The Erawan Group (SET: ERW) and Siam Wellness Group (SET: SPA) would reap the most rewards from a revival in Thai tourism as they rely largely on hotel and outlets.
The strong hotel performance in Thailand and increased spending due to the Songkran festival helped push the restaurant industry upward in April. KGI continues to view the hotel sector positively, placing ERW as its top pick and keeping an Overweight rating.
Occupancy rates in April showed strong recoveries, especially ERW at 84%. Meanwhile, occupancy rates at Central Plaza Hotel (SET: CENTEL), Minor International (SET: MINT) and S Hotels & Resort (SET: SHR) were solid at 72%, 70%, and 70%, respectively
The Tourism Authority of Thailand expects to see 30 million arrivals this year as China has reopened the border. Still, the figure is well below the pre-Covid level of nearly 40 million.
