Visa Exemptions for Chinese and Kazakh tourists was among the first measures prime minister Srettha Thavisin implemented as he entered office, aiming to stimulate Thailand’s post-election economy. The scheme kicked off on September 25, 2023 and will continue on until February 29, 2024.
The prime minister went to welcome the first batch of tourists himself on their arrival at Suvarnabhumi airport. Don Mueang, Chiang Mai and Phuket Airports also held a welcoming ceremony for the incoming tourists.
The free visa scheme would remove the traveling limitations for travelers both in terms of time-saving and expenses-saving said. In turn, it would allow them to visit Thailand with greater convenience especially during this period that is China’s Golden Week. A time when Chinese people would go out traveling, now and until the new year’s celebration.
In addition, the scheme is expected to drive the tourism industry’s 2023 income from previously forecasted at THB 1.5 trillion, that is 80% of pre-pandemic levels, to potentially THB 2.38 trillion.
The Tourism Authority of Thailand (TOT) has some high hopes for this scheme, projecting that there should be around 2.9 million Chinese tourist entering Thailand during the 5 months period, generating THB 140,313 million in revenue. While travelers from Kazakhstan in expected to be at 150,000 people, a 49.7% increase from the same time last year, generating income about THB 7,930 million.
The total number of tourists arriving at the six airports of the AOT in 2023 in expected at 100 million. In 2024 the amount is revised to reach 150 million which is higher that the pre-pandemic level at 142 million, and will push AOT’s revenue up accordingly.
Analyst from Krungsri Capital Securities Korraphat Worachet, 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.
