The tourism sector saw a slight increase during the morning session on Wednesday as Thailand is expecting to be busier at the year’s end festival with an increase in tourist arrivals.
At the end of the morning session on Wednesday, MINT was at THB 29.50, increasing by 2.61% or THB 0.75. ERW remained unchanged at THB 5.20 per share. It was up 1% during the morning session. Meanwhile, AOT rose by 0.83% or THB 0.50 to THB 60.50 per share.
Daol Securities (Thailand) gave a positive note to travel stocks as the number of travelers from last week (18-24 Dec) grew to the highest level in seven months by the arrival of Indian, Russian, and Chinese travelers.
The Economics Tourism and Sports Division stated that the number of travelers from last week (18-24 Dec) grew to the highest level in seven months by the arrival of Indian, Russian, and Chinese travelers.
The total number of foreign travelers were 796,808, an increase by 16.6% or calculated as an average of 120,303 foreign travelers per day. Indian travelers led the way by being in the first place, as the number climbed by 12.0% WoW. The second place went to Russian, as the number rose by 7.5% WoW, and the third was Chinese, as the number edged up by 7.2% WoW. The supporting factors for traveling were the long holiday during Christmas and the travel during Winter Holiday in Europe, as the accumulated number of travelers since 1 Jan – 24 Dec were 27.25 million.
The number of travelers was seen to be positive as expected, making the new high of an average of 114,000 travelers per day, an increase by 16.6% WoW, the highest level in seven months by the constant rise of Indian, Russian, and Chinese travelers. Meanwhile, the estimation of an average number of travelers per day for the rest of this year was at least 100,000 travelers per day, making the number of travelers in 2023 to be around 28 million, being adjacent to the estimation of 27.5 million.
The hotel stocks were the most beneficial as the stocks that took the most to the least advantages were ERW, CENTEL, MINT, and SHR, respectively. AOT was among the favourites (BUY at the target price of THB 79) as the number of passengers since December 2023 is reaching the highest record since COVID-19, and the trend in 2QFY24E (Jan-Mar 2024) is expected to constantly be positive, following seasonal factors which will give positive business performance next year. The estimated profit in 2024 is at THB 20 billion, an increase by 130% YoY.
