Wang Yi, the Minister of Foreign Affairs of the People’s Republic of China, is set to meet Srettha Thavisin, Thailand’s Prime Minister, today to jointly sign the Thai-Chinese visa waiver, which will take effect on 1 March 2024.
The Minister of Foreign Affairs of the PRC will officially visit Thailand from 26 to 29 January 2024 to arrange the meeting with the Thai PM at the government house and jointly sign the Thai-Chinese visa waiver, together with Mr. Parnpree Bahiddha-Nukara, Deputy Prime Minister and Minister of Foreign Affairs.
Miss Sudawan Wangsuphakijkosol, Minister of Tourism and Sports, stated that the number of tourists from countries near Thailand are recovering, especially those from China. This is because of the demand for traveling, the increasing number of flights in China, and the exemption of visa requirements.
As for last week (15-21 January 2024), the overall number of tourists in Thailand were 715,579, an increase of 20,753 or 2.99% WoW, which calculated to an average of 102,226 tourists per day. The top five tourist nationalities that came to Thailand were Chinese, Malaysian, South Korean, Russian, and Indian.
Krungsri Capital Securities (KCS) analyzed that the signing of the Thai-Chinese visa waiver is seen as a positive sentiment, as it is expected to accelerate the number of weekly tourists in Thailand. The firm expected an upside from the tourist market this year, anticipating the reach of 32 million tourists. The recommendations are among travel stocks, including AOT with a target price of THB 73.25, MINT with a target price of THB 40.
Land and House Securities analyzed that travel stocks are back in the business. The increasing number of tourists are positive for aviation stocks, including AOT, AAV, BA, and BAFS, and hotel stocks, including AWC, ERW, and CENTEL. The analyst sees AOT to be the prominent stock with a target price of THB 76.
Trinity Securities analyzed that CENTEL is the most prominent stock, as it benefited from the Thai-Chinese visa waiver. The firm expected a total number of 8.2 million Chinese tourists in 2024, while the stock is also expected to grow from the expansion of its hotel base to Japan, with the occupancy rate of 77% to more than 80% this year. The costs among restaurant stocks decreased to support the gross margin.
KGI Securities (Thailand) gave a “BUY” recommendation to AOT with a base price of THB 86. The firm sees the visa waiver as a positive sentiment. The number of tourists will directly be positive for AOT, with the upside from the capital spent on the airport. AOT’s performance is expected to still be in the process of a turnaround in the first year. The profit of the company is expected to recover by 94% YoY to THB 27 billion.
DBS Vickers Securities (Thailand) analyzed that the Thai-Chinese visa waiver will benefit AOT, AAV, BA, CENTEL, ERW, and MINT.
Krungsri Securities (KSS) gave a “BUY” recommendation to ERW with an IAA Consensus target of THB 6.10. The trend of the 4Q23 profit is expected to be positive, following the increasing number of tourists during the high season, especially tourists from China which reached 120 thousand per week, the highest level in the history.
