KUALA LUMPUR (April 18): While Malaysia is not at the top of most Chinese tourists’ minds, the AirAsia Group is very popular in China, according to investment bank Maybank.
In a note last week (April 13), analyst Yin Shao Yang said that actual travel from China to Malaysia ranks 8th in the 1H23 top 10 Chinese outbound departures relative to 2019 list despite not being in the top 10 preferred Chinese outbound destinations list of any survey.
“Potential beneficiaries under our coverage are Capital A and Malaysia Airports (aviation) and Pavilion REIT & KLCCP Stapled (shopping).
“Non-rated potential beneficiary is AirAsia X Bhd (aviation),” he said.
In a note entitled “Tracking the Chinese outbound tourism dragon”, Yin said actual travel from China to Singapore relative to 2019 is recovering the fastest.
“By mid-2023, seat capacity from China to Singapore will recover to circa 65% of 2019 levels.
“Moreover, Singapore has emerged as a preferred outbound destination for high net worth Chinese and single Chinese women.
“Potential beneficiaries under our coverage are Genting Singapore (gaming), CDL Hospitality Trusts, Far East Hospitality Trust, Frasers Hospitality Trust (hoteliers) and CapitaLand Integrated Commercial Trust (shopping). Non-rated potential beneficiaries are Singapore Airlines (aviation) and Shangri-La Asia (hotelier),” he said.
Meanwhile, Yin said actual travel from China to Thailand is not in the 1H23 top 10 Chinese outbound departures relative to 2019 list.
He said airlines that traditionally ply the China to Thailand route have not returned many aircraft to service compared to airlines that traditionally ply the China to Singapore and Malaysia routes.
“Yet, it is without a doubt that Thailand is at the top of most Chinese tourists’ mind when they think of an Asean destination.
“Potential beneficiaries under our coverage are Erawan (hotelier) and Airports Of Thailand (aviation). Non-rated potential beneficiaries are Dusit Thani (hotelier) and Siam Wellness (spa),” said Yin.
Yin said China positively surprised everyone when it abruptly reopened its borders on Jan 8, 2023.
“Anecdotal evidence suggests that the Chinese outbound tourism recovery was tepid in the first two months of 2023 due to lack of seat capacity and high airfares.
“Yet, March 2023 seat capacity suggests that the Chinese outbound tourism recovery is just getting started,” he said.
Source: https://www.theedgemarkets.com/node/663806