On Tuesday at 2:49 PM (Bangkok time), the share price of Minor International Public Company Limited (SET: MINT) surged by 1.65% or THB 0.40 to THB 24.60, with a trading value of THB 247.87 million.
Central Plaza Hotel Public Company Limited (SET: CENTEL) gained 4.72% or THB 1.25 to THB 27.75, with a trading value of THB 86.82 million.
DAOL Securities (Thailand) noted that Chakrapol Tangsutthitham, Assistant Minister at the Ministry of Tourism and Sports, provided an update on the proposed arrival fee for foreign tourists entering Thailand. The plan remains in a process for consideration, with current assessments indicating that the timing is not yet appropriate to implement such a fee.
At present, officials are evaluating the proposal, and it may require further refinement or updates before proceeding. There are no plans to introduce the fee in 2025.
Following this development, the analyst views the delay of the implementation to 2026, from the previous projection of 2025, as a mildly positive sentiment for the Thai tourism sector.
The arrival fee proposal has been under discussion since 2022, but has yet to be enacted, largely due to resistance from the hotel association over concerns it could deter tourists, especially as tourism momentum softens. This prompted the government to revise its rollout plan.
Meanwhile, data from 2024 shows average tourist spending at THB 47,400 per person, a 1% increase from the previous year, while the figure in 2019 was THB 47,896 per person. The proposed arrival fee for air travelers stands at THB 300 per person, about 0.6% of average tourist spending.
The analyst expects the fee will have a limited impact on travel decisions, since similar charges have already been rolled out by several regional destinations: Japan (JPY 1,000 or roughly THB 250), Bali (USD 10 or about THB 350), Malaysia (MYR 10 or roughly THB 80), Italy (EUR 3-7 or about THB 110-260), Spain (EUR 2.5-4 or about THB 90-150), and Germany (EUR 5 or about THB 190).
As a result, DAOL Securities (Thailand) believes the Thai tourism stocks could see a mildly positive reaction from the delay in the fee’s implementation. The brokerage firm maintains a ‘Neutral’ rating on the sector, while also giving MINT and CENTEL a ‘Buy’ recommendation, with target prices set at THB 34.00 and THB 29.00, respectively.
