Analysts predict a travel recovery starting from the third quarter as confidence rebounds. AFP
As geopolitical conflicts in the Middle East have begun to soften, the global investor spotlight is shifting back to fundamental economic drivers. The de-escalation of the US-Iran war caused oil prices to dip, allowing tourism-related industries to recover from steep declines during the peak of the tensions.With energy costs retreating and airlines gradually resuming flight operations, Thailand's hospitality and aviation sectors are poised to emerge as the major beneficiaries of this market normalisation, said analysts.
Pasakorn Wangvivatchareon, an analyst with Asia Plus Securities, projects a travel recovery from the late third quarter, supported by the peak season and a revival of confidence in Middle East aviation hubs. Australia and the UK have already downgraded their travel advisories for the Middle East.
According to Krungsri Securities (KSS), tourist arrivals to Thailand in the third week of June tallied 510,000, down 3% year-on-year, broadly in line with the prior week, which contracted 4%.
The composition of tourist arrivals was relatively similar to the previous week, with Chinese up 11%, Malaysians gaining 9% and Russians expanding 7%. Arrivals from South Korea and India contracted year-on-year by 42% and 10%, respectively.
