Thailand aims to reopen the country to international tourism within 4Q21 as the Covid-19 vaccine is likely to be widely distributed, with about 2 million foreign arrivals expected per month. DBS Vickers Securities (DBSVS) stated that this is considered positive towards Thai tourism industry.
It is expected that the vaccine against coronavirus will become widely available in Thailand and overseas by 4Q21, therefore when that time comes, the country will be ready for foreign tourism and medical tourism, reflecting the beginning of tourism recovery.
For the investment theme, DBSVS recommends investing in travel and tourism stocks as follows:
Stocks in the airlines and airport sectors would be positive once demand for air travel recovery. Top picks are AOT, AAV, BA and BAFS.
Stocks in the hotel and spa sectors: ERW (is currently under capital increase process), MINT (as of Jan 2021, the company has 25 billion baht of available cash and 28 billion baht of unutilized credit facilities) and SPA (expecting to recover from 2Q21 onwards as more than 70% of branches have been opened since Feb) are top picks.
Stocks in the hospital sector are expected to be benefited from medical tourism. Top picks are BDMS (30% of BDMS’s revenues come from international patients) and BH (67% of BH’s revenues come from international patients).
Stocks in other sectors: ADVANC, CPALL, CPN, BEM and BTS