Chinese tourism rebound spurs strong Airports of Thailand first-half results

THAILAND. Airports of Thailand Public Company Limited (AOT) today unveiled strong results for the six months and second quarter ended 31 March amid a strong recovery in Chinese tourism.

AOT operates six international airports (Suvarnabhumi, Don Mueang Airport, Chiang Mai, Hat Yai, Phuket and Mae Fah Luang Chiang Rai).

In the six months ended 31 March, passenger traffic across the six airports rose +7.09% year-on-year to 65.59 million. The total comprised 36.12 million international and 29.47 million domestic travellers.

Non-aeronautical revenue (principally duty free concession fees from King Power International – see charts below) rose +9.47% in the first half to THB11,826.90 million (US$342 million), or 43% of AOT’s revenue. For the three months ended 31 March 2017, non-aeronautical revenue increased by +8.22% to THB6,300.17 million (US$182 million), due largely to a +6.26% increase in concession revenues. The main reasons were increases in passengers and the revenue-sharing rate.

Source for all tables/charts, Airports of Thailand; Click on images to enlarge

AOT said: “The overall aviation industry of Thailand during October 2016 to March 2017 improved compared to the same period last year. The number of Chinese tourists who visiting Thailand has recovered after an extreme decline around the end of the year 2016 as a consequence from the repressive measures against illegal tours by the government.”

AOT noted that the subsequent Chinese tourism recovery was driven by a switch to higher-quality tour packages, which had also boosted visitor arrivals from other countries. Traffic was also buoyed by a stable domestic political situation; the government’s domestic and international tourism stimulus policies; and the rapid expansion of low cost airlines.

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