Tourism stocks fall after government signals 1,000-5,000 baht outbound travel tax

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3▲0 ▼2Impact / 5
Summary · why it matters

Tourism stocks declined after the government signaled it will impose an outbound travel tax of 1,000-5,000 baht per trip. Shares of Airports of Thailand, or AOT, closed at 57.50 baht, down 2.25 baht, or 3.77%, with trading value of 2.68 billion baht. Thai Airways, or THAI, closed at 5.55 baht, down 0.05 baht, or 0.89%, while MINT closed at 20.30 baht, down 0.10 baht, or 0.49%. Investors sold off tourism-related stocks on concerns that the outbound tax, if actually collected, would reduce air travel and directly hit airport and aviation businesses. MINT, meanwhile, derives most of its revenue domestically. On the same day, Airports of Thailand and AOT Ground Aviation Services, or AOTGA, signed a public-private partnership agreement for a project to provide apron and ground support equipment services, ground passenger services, and other related activities, known as Ground Support Equipment, or GSE, as well as a cargo terminal project at Suvarnabhumi Airport for a third-party operator, aimed at boosting ground handling and air cargo capacity. Services are expected to begin in 2027. For the cargo project, a warehouse will be built and various preparations made, with construction expected to take about 23 months and the total project operating period set at 25 years.

Impact on assets 3

Industrials▼
Airports Of Thailand PCL
AOT
▼ NegativeRegulationCapitalrelevance

Outbound travel tax would reduce air travel, directly hitting airport and aviation businesses like AOT.

Aerospace & Aviation▼
Consumer Discretionary▲

Off-coverage companies 1

Thai Airports Ground Servicesi
Private▲ PositiveCapitalrelevance

AOTGA signed a PPP agreement with AOT for ground support equipment and cargo terminal services at Suvarnabhumi Airport.