The decline in tourism in Thailand is causing AoT's shares to plummet

The shares of Airports of Thailand (AoT) have fallen by more than 50% in 2025, due to a marked decline in tourism.

According to data compiled by Bloomberg, its shares fell more than halfway in 2025, recording the largest loss among global airport operators worth at least $100 million.

This drop has wiped out around 460.7 billion baht (14.2 billion dollars) from AoT's market capitalization and made it the biggest loser on the MSCI Asia-Pacific index.

The massive sale of what was once the world's most valuable airport operator is taking place as security concerns are shaking the Thai tourism industry.

Chinese travelers, the main customers of duty-free shops and a major source of tourism revenue, have turned their backs on Thailand after several tourist kidnappings, including that of a Chinese actor which went viral in January and fueled concerns.

See: Thailand: cancellations or traveling with fear for Chinese tourists

It took a dramatic drop in the number of Chinese tourists for the kingdom to finally decide to tackle the call centers in Burma, even as Chinese vacationers found themselves trapped in the hell of these mafia networks.

The country is now also looking for solutions to tackle the call centers that are flourishing with government support in its other neighboring country, Cambodia.

See: Thailand-Cambodia conflict: a diversion for call centers?

Denise Wong, an analyst at Bloomberg Intelligence, said:

“The decline in the number of Chinese tourists and their spending, mainly due to security concerns, threatens to further reduce revenue from duty-free shops and other commercial properties.”

If effective measures are not taken to revive Chinese demand, the current downward trend is expected to continue. »

The government plans to revise down its target of 37.5 million international visitors for 2025 after a 30% drop in the number of Chinese tourists in the first four months, Teerasil Tapen, deputy governor of the Tourism Authority of Thailand, said in May.

The number of foreign tourists decreased by 13% last month compared to the previous year, mainly due to a decline in the number of Chinese visitors.

These bleak prospects have overshadowed the so-called "The White Lotus" effect, a temporary increase in the number of Western visitors inspired by the latest season of the successful HBO series, filmed in Koh Samui.

This also adds to the economic risks for the country, where global tariffs and weak consumption have ravaged local stocks.

See: Economy in difficulty: Thailand prepares an emergency recovery plan

The country's benchmark stock index has fallen about 20% this year, lagging behind most of its global peers.

However, according to Boonyakorn Amornsank, an analyst at Maybank Securities (Thailand) Plc, the decline in Chinese tourism is expected to recover in the second half of this year, thanks to efforts made by the Thai government to attract these travelers again.

Meanwhile, the absence of Chinese tourists is weighing on duty-free sales.

AoT announced a 13% decline in its net profit in the first quarter, mainly due to a decrease in revenue from duty-free shops and other commercial areas, the company said.

Thailand's largest duty-free shop operator wants to cancel concessions

Duty-free shop in an airport.

King Power Duty Free has asked AoT to cancel its concessions in five airports, citing the decline in the number of Chinese visitors as the main reason.

On Monday, June 16, Paweena Jariyathitipong, the interim president of AoT, said:

“The company's board of directors will hire two external advisors to examine King Power's request, whose concessions represent about 17% of AoT's total revenue.”

The company is looking for a new leader after the resignation of former CEO Kerati Kijmanawat at the end of April.

At least four brokers have downgraded their rating of the stock since King Power requested the termination of its concessions last week, according to data compiled by Bloomberg.

This decision follows at least three downgrades last month after the release of AoT's quarterly results.

See also:

Thailand facing a crisis in the restaurant industry that could last 3 years

The World Bank urges Thailand to act on the water crisis

Tourism in crisis: Thailand responds to criticism from foreign travelers

Imminent crisis in Thailand: the real estate market is shaky

US tariffs: Thailand forced to negotiate to avoid a crisis

Credit crisis: the Bank of Thailand sounds the alarm

Towards a major financial crisis in Thailand?

Source : Bangkok Post