Thai Tourism Giants Report Surge in Profit Amid Chinese Slump
Listed carriers and hoteliers secured over 30.25 million baht in profit despite a 35% drop in Chinese visitors, driven by efficient cost controls and strong European demand
- Major Thai tourism businesses, including airlines and hotels, reported significant profit growth during the first nine months of 2025, despite a 35% drop in Chinese visitors.
- The success was driven by aggressive cost management and a strategic shift to attract higher-yielding tourists from Europe and other regions.
- The airline sector was the strongest performer, recording over 30 billion baht in profit, largely due to Thai Airways' focus on European routes and efficient cost controls.
- Leading hotel groups also saw profits climb, boosted by strong performance from European properties, new commercial ventures, and higher room rates.
Listed carriers and hoteliers secured over 30.25 million baht in profit despite a 35% drop in Chinese visitors, driven by efficient cost controls and strong European demand.
Major publicly listed Thai tourism businesses have successfully navigated a significant slowdown in international arrivals during the first nine months of 2025 (9M 2025), transforming the market challenge into widespread profit.
Despite overall foreign tourist arrivals hitting 24 million—a 7 per cent decline year-on-year, largely due to a sharp 35 per cent drop in Chinese visitors—leading airlines and hotel groups reported strong financial results.
The key to the resilience lay in aggressive cost management, a strategic pivot away from the diminished Chinese market, and higher-yielding traffic from Europe and other territories.
Airlines Post THB 30.25 Million Profit
The Thai airline sector was the strongest performer, recording combined profits exceeding 30.259 billion baht, an increase of 8.687 billion baht on the previous year.
Thai Airways (THAI) delivered the most dominant performance, securing a net profit of 26.394 billion baht—a rise of 73.4 per cent—largely due to efficient cost management.
The airline benefited from lower fuel prices, a stronger baht, and excellent passenger growth on its European routes, maintaining a robust load factor of 79.1 per cent.
While Bangkok Airways and Thai AirAsia saw lower year-on-year profits due to their higher exposure to the weak Chinese market, both remained profitable.
Thai AirAsia strategically reduced capacity in slow-recovering markets like China and Hong Kong, focusing expansion instead on routes to India and Vietnam.
Bangkok Airways was buoyed by European traffic and strong growth in its airport-related services.
Hotel Groups See Revenues Climb
The publicly listed hotel sector collectively achieved profits of over 12 billion baht in the nine-month period.
Minor International PCL (MINT) was the highest earner, reporting a profit jump of 47 per cent, driven by robust hotel and food revenues both domestically and abroad, including strong performances from its properties in Europe and the Maldives.
Asset World Corp PCL (AWC) saw revenue growth of nearly 10 per cent and profit growth of 13 per cent. This was boosted by new ventures, including the successful launch of the "Jurassic World: The Experience" at Asiatique The Riverfront Destination, which sold over 200,000 tickets in its first three months, significantly boosting the firm's commercial property revenues.
Other notable performers included:
Veranda Resort PCL (VRANDA), which posted the highest net profit growth in the hotel group, increasing by 17 per cent. This growth was driven by a 17 per cent rise in hotel revenue, largely attributed to higher Average Daily Rates (ADR).
S Hotels and Resorts (SHR), which swung back to a net profit of 328.4 million baht from a loss the previous year. This turnaround resulted from improved financial cost management (securing new loans) and higher returns from its Thai properties, including an 18.9 per cent rise in Revenue Per Available Room (RevPAR) following the renovation of SAii Laguna Phuket.
Only Dusit Thani PCL (DTC) reported a net loss, mainly attributed to increased operating expenses and interest payments associated with the reopening of Dusit Thani Bangkok and construction expenses for the Dusit Central Park project.
Positive Outlook Driven by Stimulus
The outlook for the fourth quarter is highly positive, aligning with the peak high season, where daily foreign arrivals are now reaching approximately 100,000.
The sector is expected to receive further boosts from government stimulus measures, notably the "Shop and Stay Tax Break 2025" programme, which allows citizens to claim tax deductions of up to 20,000 baht for hotel and dining expenditure until mid-December.
Looking ahead, major players are focusing on expansion: THAI is exploring its Maintenance, Repair, and Overhaul (MRO) business, Minor is planning a Real Estate Investment Trust (REIT) offering and transitioning to an Asset-Light model, and AWC is continuing to convert development assets into operational cash flow generators.
