Thailand reportedly recorded a total of 2 million international arrivals so far this year, showing a faster-than-anticipated recovery, and is predicted to reach 10 million by the end of the year after further relaxation of tourism restrictions.
KTBST Securities maintains its “Overweight” rating on the tourism sector based on its view that this report will boost sentiment toward the sector. The number of international tourists for the first five months was 1.3 million, while in June, 700,000 arrivals are projected, surpassing the anticipation of 500,000. With a better-than-anticipated outlook, the number of international tourists could reach 6 million this year.
The equities that will benefit, in order of percentage of their income in Thailand, are The Erawan Group Pcl. (SET: ERW) (88%), Central Plaza Hotel Pcl. (SET: CENTEL) (80%), Minor International Pcl. (SET: MINT) (15%), and S Hotels and Resorts Pcl. (SET: SHR) (15 %).
KTBST likes ERW (TP: THB3.90) and CENTEL (TP: THB50.00) and also suggests MINT (TP: THB44.00) and Airports of Thailand Pcl. (SET: AOT) (TP: THB76.00).