Today (November 21, 2025), The Erawan Group Public Company Limited (SET: ERW) closed at THB 2.24 per share, up 1.82% or THB 0.04 per share with a trading value of THB 42.55 million. Together with Asia Aviation Public Company Limited (SET: AAV) that also settled 1.87% higher, the two are the only major players in Thai tourism stocks that managed to withstand negative sentiment in the market, resulting in the SET Index to close 2.14% lower. This was driven by heightened tensions between China and Japan, directly impacting the tourism sector.
The Chinese government issued a warning urging citizens to avoid traveling to Japan after Prime Minister Sanae Takaichi’s statement that a Chinese attack on Taiwan posing an existential threat to Japan could trigger a military response from Tokyo. This resulted in over 60% of Chinese tourists reportedly canceling trips to Japan within days, forcing tour operators and airlines to process significant refunds since the past weekend.
This situation has become an opportunity for other countries. Data from Chinese online travel agency, Qunar, indicates that South Korea is the biggest beneficiary, immediately rising to the top destination among Chinese tourists, with Seoul overtaking Japan as the most popular city. Following are Thailand, Hong Kong, Malaysia, Singapore, Vietnam, and Indonesia, which have also seen a rapid increase in searches and ticket bookings.
Japan, meanwhile, has been severely affected. Chinese tourists typically account for 25% of Japan’s total annual foreign visitors and generate revenue of JPY 1.64 trillion, much of which could be lost. Experts estimate GDP could decline by approximately 0.36%.
Analysts at Bualuang Securities (BLS) stated that due to safety concerns and the political stances of both countries, Chinese tourists are delaying or suspending trips to Japan. Although both governments are attempting negotiations, resolving the conflict will take time, and many Chinese travelers have already changed their plans and chosen alternative destinations.
The current situation is a positive factor for Thailand’s tourism sector, as Chinese tourists are likely to redirect their travel plans to Thailand instead. This has provided short-term momentum for tourism stocks, expected to last through early next year, especially benefiting airports, airlines, and hotels.
