China’s economic stimulus likely to benefit Thai tourism
The Thai economy is set to receive a significant boost from China's recent economic stimulus measures, Asia Plus Securities reported on Thursday.
The measures, aimed at stimulating growth and addressing real estate sector challenges, are expected to positively impact Asian markets, including Thailand.
China’s government has implemented a series of accommodative monetary policies and fiscal measures to inject liquidity into the economy and support consumption. These efforts are anticipated to drive quarterly GDP growth above 5% year-on-year, aligning with the government’s annual target.
Thailand, which has a substantial Chinese tourist market, is expected to benefit particularly from this economic upturn. In 2023, Chinese tourists accounted for approximately 3.5 million visitors, representing 13% of Thailand’s total tourist arrivals.
The Tourism Authority of Thailand (TAT) has forecast a 29% year-on-year increase in tourist arrivals for 2024, reaching 36.3 million. The government has allocated a subsidy of up to 5 billion baht to support the tourism sector.
This positive sentiment is expected to have a favourable impact on aviation and hotel stocks, including AOT, AAV, CENTEL, ERW, and MINT. As Chinese tourists return to Thailand, these sectors are likely to experience increased demand and revenue.
