Thai hospitality and travel shares soar on reopening plans

[Jonathan Fairfield]

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.

 

(Reporting by Chayut Setboonsarng; Editing by Martin Petty)

 

 

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-- © Copyright Reuters 2021-10-12

 

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[Mavideol]

36 minutes ago, Jonathan Fairfield said:

lifted by an announcement by its prime minister that more vaccinated tourists would be allowed to visit the country from November.

why would people come to country that has no control over the virus, has 22.7% or 27.3% fully vaccinated people, why take the risk, that's a big gamble, it's like playing Russian roulette

[473geo]

Domestic travel will at least provide some base income to allow places to open. Once things are open international tourists will arrive if restrictions are fully removed, it's not all going to just happen like opening the doors of a January sale!!

[Enzian]

I'm reminded of the "greater fool" theory.

[John Drake]

20 hours ago, Jonathan Fairfield said:

"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

And I wonder if Maria is selling into the rally.

[bangon04]

so the biggest companies - airlines and hotel groups etc - are profiting again? good news for the well-connected

[zzaa09]

42 minutes ago, bangon04 said:

so the biggest companies - airlines and hotel groups etc - are profiting again? good news for the well-connected

To be expected.

Yet, hasn't it always been of this nature? 

[Emdog]

2 hours ago, bangon04 said:

so the biggest companies - airlines and hotel groups etc - are profiting again? good news for the well-connected

Stock price rise doesn't mean biggest companies are profitable. More like a bet on the future they will be profitable. How do these prices compare to prices in 2019?

[sapson]

On 10/12/2021 at 4:47 PM, Jonathan Fairfield said:

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.

Utter garbage, reported numbers were low because of extremely miniscule testing and the ludicrous no test no have policy.

 

The entry door was shut long after the Chinese Covid 19 filly had bolted and run amok amongst the population