Excerpts from Maybank KE report
Analyst: Yin Shao Yang

Tracking the Chinese outbound tourism dragon

Options galore for Chinese tourism exposure


After a tepid start, the recovery in Chinese outbound tourism is accelerating and will reach more meaningful levels by mid-2023.

Chinese outbound tourism to Singapore will recover the fastest to 2019 levels. Yet, Thailand is still the top ASEAN destination of choice for Chinese tourists.

Our top ASEAN tourism picks are Erawan, Airports Of Thailand, Capital A, Pavilion REIT, Genting Singapore, CDL Hospitality Trusts, Far East Hospitality Trust, Frasers Hospitality Trust and CapitaLand Integrated Commercial Trust.
 

 
China tourists4.23

 MY - room to improve but AirAsia flying the flag

 

To be sure, Malaysia is not at the top of most Chinese tourists’ minds. Yet, the AirAsia Group is very popular in China.

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 & Malaysia Airports (aviation) and Pavilion REIT & KLCCP Stapled (shopping). Non-rated potential beneficiary is AirAsia X (aviation).

 

 TH – still ramping up but top ASEAN destination


Actual travel from China to Thailand is not in the 1H23 top 10 Chinese outbound departures relative to 2019 list.

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 chain).

 SG - top beneficiary of CN reopening, in our view

 
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 c.65% of 2019 levels. Moreover, Singapore has emerged as a preferred outbound destination for high net worth Chinese and single Chinese women.

GrandCopthorne4.23

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).


Full report here.

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