Shares of Thailand’s tourism-related companies rose on Tuesday after China officially announced overnight that it will remove quarantine for inbound travelers from January 8, bolstering investors’ confidence in the tourism industry’s further recovery.
As of 11.25 A.M. (Thai time), the share price of Asia Aviation Pcl. (SET:AAV) gained THB0.14/share, or 4.86%, to THB3.02/share, with a trading value of THB308 million.
The share price of Bangkok Airways Pcl. (SET:BA) gained THB0.90/share, or 7.03%, to THB13.70/share, with a trading value of THB71 million.
The share price of Minor International Pcl. (SET:MINT) gained THB0.75/share, or 2.38%, to THB32.25/share, with a trading value of THB712 million.
The share price of Airports of Thailand Pcl. (SET:AOT) gained THB1.75/share, or 2.37%, to THB75.50/share, with a trading value of THB3,139 million.
The share price of Siam Wellness Group Pcl. (SET:SPA) gained THB1.00/share, or 8.93%, to THB12.20/share, with a trading value of THB113 million.
DAOL Securities (DAOL) is optimistic about China reportedly dropping quarantine for overseas travelers next month as it will boost sentiment in Thailand’s tourism sector.
Since 2012, China has been taking the top spot as far as providing tourists to Thailand, with about 11 million Chinese visitors arriving in 2019, accounting for 25% of the total.
Therefore, DAOL has named Top Pick stocks as it will reap benefit from China’s cutting quarantine: ERW (BUY/TP: THB5.20), BAFS (BUY/TP: THB35.00) AOT (BUY/TP: THB82.00), AAV (BUY/TP: THB3.30), SPA (Bloomberg consensus: THB11.82), EKH (HOLD/TP: THB8.50) and WHA (BUY/TP: THB4.60).
China announced late Monday that beginning January 8, international tourists will no longer be required to undergo quarantine upon arrival on the mainland.
This change is in response to this month’s sudden loosening of domestic Covid restrictions. These revisions roll back the majority of the strictest regulations that China’s zero-Covid policy had in place for the past three years.
According to the Chinese health office, visitors entering China no longer need to apply for a clear health code, only a negative virus test within the previous 48 hours. It was announced that travelers would still be required to wear face masks throughout the journey.