Thailand’s Airport Expansion To Keep Pace With Tourism Growth

Thailand is one of the most popular tourist destinations in Southeast Asia because of the ideal combination of modern lifestyle and fascinating history. Thailand has more than its share of beautiful sceneries, temples, beautiful palaces, beach resorts and idyllic villages where travellers can experience holistic living for relaxation and rejuvenation. Accommodations range from suites to budget rooms with comfortable furnishings.

However, even with the popularity of Thailand as a tourism nation, the growing number of tourist arrivals at the airport poses a serious problem for the state-run Airports of Thailand. The airports have to expand their capacity otherwise; they cannot keep pace with tourism growth. This year, the Airports of Thailand’s shares have climbed by 18% to exceed the benchmark SET index’ 3% advance.

The Airports of Thailand stands to benefit from the growth in tourism but it will take some time for the company to tap into the opportunities until an expanded infrastructure is in place. According to AmnartNgosawang, an analyst at KTB Securities in Bangkok, the current price of the shares of the state-run airports offers a very limited upside for investors. The fundamentals are quite strong but valuation is now expensive.

The goal of Suvarnabhumi Airport is to double its present capacity to 90 million passengers within 5 years. Singapore’s Changi Airport has a capacity of 60 million annually while the Capital International Airport of Beijing can handle 90 million passengers per year. If an extra concourse or satellite terminal at Suvarnabhumi is built, it can increase the airport’s capacity to 60 million and catch up with present demand.

If the airport’s capacity is doubled, it can handle more passengers than it was designed for particularly foreign tourists that are responsible for the bulk of the airport’s income.  Expanding the airport is very important to Thailand because tourism accounts for 18% of the country’s gross domestic product (GDP).

Meanwhile, you can still enjoy the beauty of Thailand and relax in a luxurious and comfortable room at suite accommodation in Pattaya. Your accommodation allows you easy access to downtown shopping, nightlife and entertainment. The beach is also close by so that you can enjoy unlimited sand and sun.

Share Button