Minor International to Impact the Least from Dropping Tourist Confidence after the Shooting

Stocks in the tourism sector of the Thai stock market plunged as much as 3.7% at the open on Wednesday, a day after the shooting incident at a mall in central Bangkok that killed two people, including one Chinese tourist.

The main bourse also plunged sharply at the open due to the market’s concerns over the US Fed to raise interest rate further or at best maintain the current level for longer. However, the tourism sector faced more pressure from the shooting at Siam Paragon, one of the largest and busiest malls in Bangkok for Thais and foreign tourists, that dropped the sector sentiment when it was about to recover with the help of the free-visa scheme for Chinese arrivals.


As of 11:55 BKK time on Wednesday, the share price of Central Plaza Hotel Public Company Limited (SET: CENTEL) fell 2.12% to THB46.25 per share. The Erawan Group Public Company Limited (SET: ERW) dropped 2.68% to THB5.45 per share. S Hotels and Resorts Public Company Limited (SET: SHR) slipped 1.50% to THB2.62 per share, while Minor International Public Company Limited (SET: MINT) dipped 0.81% to THB30.75 per share.

Meanwhile, Airports of Thailand Public Company Limited (SET: AOT), who manages major airport in Thailand, fell 2.14% to THB68.50 per share and Asia Aviation Public Company Limited (SET: AAV), a low-cost airline, dropped 3.01% to THB2.58 per share.


KGI Securities wrote in an analysis, stating that it had a negative view toward the shooting news yesterday as it could impact tourist confidence, especially Chinese. The number of Chinese tourist arrivals has been gradually recovering, but worries about Thailand’s security is one of many reasons the number of Chinese tourists is lagging behind other countries.

KGI gave a case study that in 2018 after the boating accident with Chinese tourists in Phuket, the number of Chinese tourists dropped significantly for several months, causing the government to implement a policy of waiving visa-on-arrival fees. Meanwhile, a bomb at the Erawan Shrine at the Ratchaprasong intersection in 2015 did not have a significant negative impact on overall tourist arrivals afterward. However, KGI noted that yesterday’s incident could reduce the expected positive impact from the visa exemption policy implemented September 25.

The companies expected to see the most negative impact according to KGI would be ERW and Siam Wellness Group Public Company Limited (SET: SPA). Meanwhile, Minor International (SET: MINT) should have the least impact as the company has a smaller proportion of revenue from Thailand. KGI maintained a ‘Neutral’ outlook on the hotel sector.