In recent market developments, airports and airlines in Thailand experienced notable gains, reflecting growing confidence in the country's tourism sector. The share price of Airports of Thailand (AOT) increased by 4.50%, reaching THB 52.25, supported by a significant trading volume of THB 935.42 million. Similarly, Thai Airways (THAI), Bangkok Airways (BA), and Asia Aviation (AAV) saw rises of 2.99%, 2.80%, and 6.03%, respectively.
According to a forecast by DAOL Securities, the Thai tourism industry is poised for a robust recovery, driven primarily by the return of Chinese tourists. They project arrivals could hit 8 million in 2026, bolstered by key events such as the Thai King's state visit to China and the reopening of Chinese tour groups. The upcoming Lunar New Year period is expected to see a strong surge in tourism activity, with restrictions on Chinese travel to Japan contributing to the rebound in group tourism within Thailand.
Industry Outlook and Market Valuations
DAOL Securities has upgraded its outlook for the tourism sector from "Neutral" to "Overweight," anticipating peak season activity from late 2025 through early 2026. The sector's valuation has become more attractive, with its price-to-earnings ratio dropping to 13, indicating improved market sentiment and investment appeal. Leading companies such as Central Plaza Hotel and The Erawan Group are highlighted as top investment choices.
This positive trajectory underscores Thailand's competitiveness in the tourism sector, with strengths in service quality and natural attractions compared to regional competitors. The ongoing recovery is expected to contribute to sustained earnings growth, with forecasts indicating an increase from THB 12.2 billion in 2025 to THB 13.2 billion in 2026, driven by higher revenue per room and effective cost management.
