[BANGKOK] Thailand’s post-Covid flood of tourists has turned into more of a trickle, adding to concerns for Airports of Thailand (AOT) as it grapples with shrinking duty-free sales without a full-time chief executive officer.
Its shares have more than halved in 2025, notching the steepest loss among any of the world’s airport operators worth at least US$100 million, according to data compiled by Bloomberg. The tumble wiped out about 460.7 billion baht (S$18.2 billion) of AOT’s market capitalisation and made the stock the biggest loser on the MSCI Asia-Pacific Index.
The sell-off for what was once the world’s most valuable airport operator is playing out as safety concerns rattle Thailand’s tourism industry. Chinese travellers, key spenders at duty-free shops and a major source of travel revenue, have turned away from the South-east Asian nation after the viral kidnapping of a Chinese actor in January stoked worries about security.
“Falling Chinese tourist arrivals and spending – driven mainly by safety fears – threaten to further reduce revenue from duty-free shops and other commercial properties,” said Denise Wong, an analyst at Bloomberg Intelligence. “A failure to adopt effective measures to reinvigorate Chinese demand will likely mean the current downtrend persists.”
The government plans to trim its target of 37.5 million international visitors for 2025 after a 30 per cent slump in Chinese tourists in the first four months, Teerasil Tapen, deputy governor of the Tourism Authority of Thailand, said in May. Foreign tourist arrivals last month fell 13 per cent from a year earlier, led by a drop in Chinese visitors.
The dour outlook has clouded the so-called The White Lotus effect – a temporary boost in Western visitors inspired by the latest Koh Samui-set season of HBO’s hit show. It also adds to economic risks for the country, where global tariffs and weak consumption have ravaged local equities. The nation’s key benchmark stock index has slid about 20 per cent this year, lagging most global peers.
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Still, the downturn in Chinese tourists will likely rebound in the second half of this year as the Thai government steps up efforts to lure those travellers again, according to Boonyakorn Amornsank, an analyst at Maybank Securities (Thailand).
In the meantime, the lack of Chinese arrivals is weighing on duty-free sales. AOT reported a 13 per cent decline in March quarter net income, mostly driven by a decrease in revenue sharing from duty-free shops and other commercial areas, the company said.
Thailand’s largest duty-free shop operator King Power has asked AOT to cancel concessions at five airports, citing dwindling Chinese visitors as a main reason. The company’s board will hire two external advisers to review the request from King Power, whose concessions contribute about 17 per cent of AOT’s total revenue, acting president Paweena Jariyathitipong said on Monday (Jun 16). The firm is searching for a new leader after former CEO Kerati Kijmanawat quit in late April.
At least four brokers have lowered their ratings on the stock since King Power made the concession plea last week, according to data compiled by Bloomberg. That follows at least three downgrades made last month after AOT’s quarterly results. BLOOMBERG
