Thai hospitality and travel shares soar on reopening plans

Stock Markets5 minutes ago (Oct 12, 2021 02:46AM ET)

(C) Reuters. FILE PHOTO: People enjoy at a beach as Phuket opens for foreigners, who are fully vaccinated against the coronavirus disease (COVID-19), to visit the resort island without quarantine, in Phuket, Thailand, September 19, 2021. REUTERS/Athit Perawongmetha

BANGKOK (Reuters) – Shares in Thailand’s hotels and airlines jumped in Tuesday morning’s trading, lifted by an announcement by its prime minister that more vaccinated tourists would be allowed to visit the country from November.

Prayuth Chan-ocha late on Monday said more than 18 months of mandatory quarantine would end next month for vaccinated arrivals from countries considered “low risk”, including the United States, Britain and China.

The stock exchange’s tourism and leisure index jumped as much as 4.42% when markets opened on Tuesday, compared to a benchmark increase of 0.82%.

Gains were driven by a 4% rise in Airports of Thailand Pcl, Asia Aviation Pcl and Bangkok Airlines Pcl, which rose 5.59% and 3.42%, respectively.

Hotelier, Erawan Group Pcl increased nearly 7% and rival Asset World Corp climbed over 4%.

Thailand’s strict entry requirements had kept COVID-19 infection numbers low until this year, but at a huge loss to jobs and revenues in its vital tourism sector.

Since July, it has operated pilot projects on Samui and Phuket islands allowing for vaccinated visitors and this month reduced quarantine periods elsewhere.

But arrivals have plummeted to a fraction of the nearly 40 million visitors in 2019, with tourism losing $50 billion in annual revenue, an 82% plunge.

Despite its stringent measures to keep the virus out, Thailand has recorded 1.7 million infections and 17,835 COVID-19 deaths, with 98% of its caseload since April.

A third of its 72 million residents are vaccinated.

The announcement follows Britain’s removal of Thailand from its travel red list last week.

Analysts said that although foreign arrivals may not increase quickly, domestic activity would be boosted.

“A reopening would mean that full mobility is restored … we are much optimistic on the domestic travel and consumption,” said Maria Lapiz, head of institutional research at Maybank Kim Eng.

Thai hospitality and travel shares soar on reopening plans

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Join the exclusive subscription today and get premium articles for free

Up Next