Thailand’s Struggling Tourism Recovery Affects Airports of Thailand and Stock Value Amid Dwindling Chinese Tourist Arrivals

Published on June 23, 2025

Thailand’s tourism industry, once a thriving sector contributing to the nation’s economic growth, has been struggling to bounce back post-Covid, especially with declining numbers of Chinese tourists. This has had a direct impact on Airports of Thailand (AOT), the organization that manages the country’s busiest airports, including Suvarnabhumi in Bangkok. The slowdown in tourism has been detrimental not only to the tourism industry but also to the country’s economy, with significant consequences for AOT’s financial health and stock market performance.

Tourism Dip Hits Duty-Free Sales Hard

The effects of the faltering tourism recovery are being keenly felt in Thailand’s duty-free market. AOT’s sales of duty-free goods, managed in collaboration with King Power, have seen a sharp decline, contributing to the company’s financial difficulties. This is particularly evident among Chinese travelers, whose numbers have significantly dropped since the pandemic. The safety concerns, especially surrounding the viral kidnapping incident of a Chinese actor, have further deterred Chinese tourists from visiting Thailand, exacerbating the issue. This shift in tourist behavior has led to a 30% reduction in Chinese arrivals, directly impacting the revenue generated from duty-free sales at airports.

AOT’s Financial Losses and Leadership Crisis

The financial struggles of Airports of Thailand have become evident with a 13% decline in net income, with a substantial portion of this drop attributed to the reduced duty-free revenues. To make matters worse, King Power, which runs the duty-free shops at various Thai airports, has requested the cancellation of some of its concessions, further highlighting the downturn in business. As a result, AOT’s stock price has taken a severe hit. The company’s share value plummeted by over 50% in 2025, significantly reducing its market capitalization. The sharp drop in stock price has raised concerns about the airline and tourism sector’s stability and future growth prospects.

Stock Plunge and Investor Concerns

On June 20, 2025, AOT’s share price dropped by 9%, the largest decline in Asian markets on that day, reflecting a broader downturn in the country’s tourism sector. The sharp drop came amid ongoing health concerns, particularly in key source markets like China, leading to continued hesitancy among travelers. In the first half of 2023, AOT recorded just 28% of its pre-pandemic passenger numbers, well below the 52% that analysts had projected. This mismatch between actual and expected recovery figures indicates that Thailand’s recovery process is still far from stable. Economic analysts, including Dr. Somchai from Bangkok University, have expressed concerns over the current situation, stating that the continued health uncertainties are discouraging both inbound and outbound travel.

Government Efforts and Regional Competition

To combat the growing crisis, the Thai government has implemented a variety of measures aimed at stimulating tourism, including offering financial incentives to attract foreign visitors and promoting domestic travel. However, these initiatives have not had the desired effect, as the global tourism industry continues to be plagued by uncertainties. While other Southeast Asian nations have seen a rise in tourist arrivals, Thailand is struggling to maintain the momentum necessary to drive recovery. This situation is mirrored across the broader tourism-dependent economies in the region, with other sectors such as airlines and hospitality facing similar challenges.

Uncertain Future for Thailand’s Tourism Sector

Thailand’s tourism sector faces a difficult road ahead. Despite government efforts, many industry experts believe that without more consistent global health regulations and clearer incentives, the recovery process may take longer than anticipated. The lack of momentum in tourism recovery, particularly with the decline in Chinese visitors, has had far-reaching implications for AOT and the broader Thai economy.

AOT’s decline in revenues and stock market performance reflects a larger issue facing the Thai economy. The tourism sector, which was once a major contributor to the country’s GDP, is struggling to regain its former strength, and it seems unlikely that a swift recovery is imminent. The challenges currently faced by AOT highlight the broader vulnerability of the Thai economy, which is highly dependent on tourism, making it susceptible to external factors such as health concerns, political instability, and fluctuating global demand.

The Impact of Decreased Chinese Tourists

The loss of Chinese tourists has been one of the most significant factors in Thailand’s struggling tourism recovery. Before the pandemic, Chinese travelers were one of the largest groups of international visitors to Thailand, making up a significant percentage of tourists visiting the country. However, the ongoing safety concerns and media coverage surrounding incidents like the kidnapping of a Chinese actor have led to a marked decrease in Chinese tourists. As China remains one of Thailand’s most important tourism markets, the absence of these visitors has had a direct impact on the revenue generated from tourism, particularly in duty-free sales, which are a major source of income for Airports of Thailand.

The Role of AOT’s Duty-Free Business

AOT’s duty-free operations have been particularly affected by the downturn in tourist numbers. King Power, which runs the duty-free stores at several airports in Thailand, has been a major contributor to the company’s financial performance. However, with the decline in passenger numbers and fewer international tourists arriving, King Power has requested the cancellation of some of its concessions at Thai airports. This move indicates not only a slowdown in business but also a significant shift in the dynamics of the duty-free market in the country.

Looking Forward: The Path to Recovery

As Thailand struggles to regain its position as a leading global tourism destination, AOT is facing immense challenges in stabilizing its operations. While government incentives and efforts to boost tourism may help in the short term, the uncertainty surrounding global health concerns, changing travel regulations, and declining tourist numbers suggest that Thailand’s recovery will be slow. Industry experts warn that unless the government can introduce more effective and clear policies to stabilize the situation, the tourism sector may continue to suffer in the coming months.

AOT’s significant drop in stock value and its financial losses in recent months underline the challenges that the airport operator is facing. As Thailand’s largest airport operator, AOT’s struggles reflect the broader issues in the Thai tourism sector. The company’s future will depend on how quickly it can recover from these setbacks and adapt to the changing travel landscape.

Conclusion

In conclusion, Thailand’s tourism sector is at a crossroads. The post-Covid recovery has been slower than expected, particularly with the decline in Chinese tourists, which has had a direct impact on airports and their duty-free revenues. As Airports of Thailand grapples with a 50% drop in stock value and decreasing passenger traffic, the country faces an uncertain future in terms of tourism recovery. The government’s efforts to stimulate the sector have not been as effective as hoped, and until there is more stability in the global tourism market, it may take longer for Thailand to regain its position as a major global tourism hub. AOT’s leadership will need to address these challenges head-on if the company—and the broader tourism sector—are to return to growth.