Tourism Decline Triggers Sharpest Stock Plunge in Asia for Thai Airport Company

Thailand’s tourism recovery post-Covid is faltering, particularly among Chinese travelers, significantly impacting Airports of Thailand’s duty-free sales and stock value, leading to major financial losses and concerns for its future.

Key Points

• Thailand’s post-Covid tourist influx is dwindling, impacting Airports of Thailand (AOT) with reduced duty-free sales and a leadership vacuum, as shares plummeted over 50% in 2025, losing significant market capitalization.
• Safety concerns, particularly regarding the viral kidnapping of a Chinese actor, have deterred Chinese tourists, leading to a 30% decline in arrivals, subsequently affecting revenue from duty-free shops.
• AOT reported a 13% drop in net income, largely due to decreased duty-free revenues, with King Power requesting the cancellation of concessions at multiple airports. The company’s stock ratings have been downgraded by multiple brokers as a result.

Tourism Dip Fuels Stock Plunge for Thai Airport Operator

The share prices of Airports of Thailand Public Company Limited (AOT) plummeted by 9% on Wednesday, marking the steepest decline across the Asian markets. This downturn comes as international tourism continues to falter, exacerbated by the recent increase in COVID-19 cases in key source markets and a slower-than-expected recovery in travel demand.

AOT, which oversees Bangkok’s Suvarnabhumi Airport and several other airports nationwide, reported a significant drop in passenger traffic this quarter. The company recorded just 28% of pre-pandemic passenger numbers in the first half of 2023, a stark contrast to the 52% expected by analysts. “The situation remains precarious. Continued health concerns are discouraging both inbound and outbound travel,” said Dr. Somchai, an economic analyst at Bangkok University.

The Thai government has taken measures to stimulate tourism, including scheme incentives aimed at attracting more foreign visitors and encouraging domestic travel. However, uncertainties surrounding global outbreaks and fluctuating travel regulations are limiting effectiveness. While regional competitors in Southeast Asia have seen upswings in tourist numbers, Thailand grapples with a lack of momentum.

AOT’s stock drop reflects broader concerns within the region’s tourism-dependent economies. As recovery remains sluggish, other airlines and hospitality sectors are under similar pressures. Industry experts suggest that unless clearer health guidelines and incentives are established, the recovery road could be longer than anticipated.

As global travel dynamics continue to evolve, stakeholders in Thailand are urged to stay adaptive and proactive in navigating these challenges.

Sources: Reuters, Bangkok Post