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

- Link: https://www.thailand-business-news.com/economics/226681-tourism-decline-triggers-sharpest-stock-plunge-in-asia-for-thai-airport-company
- Published: 2025-06-23T05:43:54+07:00
- Author: Arun Upadhyaya

**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.**

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## 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.

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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.

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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_