Thailand Expects 30% Rise in Air Traffic as Stimulus for Tourism Kicks In

Thailand is expecting an increase of 30% in air traffic next year from the boost of tourism stimulus plan and also a free visa scheme, which could benefit Airport of Thailand Public Company Limited (SET: AOT) the most for being the forefront of the tourism business in Thailand.


Mr. Suraphong Piyachote, Deputy Minister of Transport, stated after the visit of Aeronautical Radio of Thailand that commercial flights is expected to increase 20-30% to 1.3 million in 2024, following a push from the government to boost tourism as well as the free-visa scheme that is now extended to India and Taiwan tourists, which should add additional 900,000 and 400,000 tourists from the aforementioned countries, respectively.

Moreover, the Director of the Department of Energy Business of Thailand also expected fuel consumption to increase as well, especially jet fuel (JetA1) that saw an increase by 53.6% after the recovery of Covid-19 and the government’s measures to boost tourism.

Ms. Wilaiwan Kanjanakanti, Senior Executive Vice President, Finance of PTT Oil and Retail Business Public Company Limited (SET: OR) expected revenue to recover in the second half of this year as oil prices are trending upward, while demand for fuel, especially jet fuel, is also growing from the recovery in tourism.


Mr. Koraphat Vorachet, Director of Research and Investment Service of Krungsri Capital Securities, expected AOT, as an operator of main airports in Thailand, to benefit the most from an increasing number of flights. Other airline stocks such as Asia Aviation Public Company Limited (SET: AAV) and Bangkok Airways Public Company Limited (SET: BA) should also see positive impact from the increase as well.

Meanwhile, The Erawan Group Public Company Limited (SET: ERW) and Central Plaza Hotel Public Company Limited (SET: CENTEL) should benefit from an increasing number of tourists as hotel operators in Thailand.

Bangkok Aviation Fuel Services Public Company Limited (SET: BAFS), which operates storage and aircraft refuelling services, and OR as Thailand’s largest jet fuel seller should see a positive impact, which would continue to increase in 2024.