Best known for its beaches and nightlife, Thailand has long been a favourite holiday destination for global tourists. In 2024, foreign tourists have made a significant return to cities including Bangkok, Phuket and Ko Samui following a years-long slump, boosting the local tourism industry, which accounts for nearly a fifth of Thailand’s GDP. But the return of foreign visitors to the country will not be enough to boost investor sentiment towards local stocks.
On the surface, Thailand’s economy is doing well. The country recorded 17.5mn foreign tourists in the first half of this year, according to official data, up more than a third from last year. These visitors have contributed more than $22bn in tourism revenue. That growth is expected to accelerate further for the rest of the year
Meanwhile, the country may become an unexpected beneficiary of tariff wars between China and the US. Chinese automaker BYD has opened its first electric vehicle plant in Thailand this month, just as the US and the EU are imposing higher tariffs on EVs made in China. As more production is moved to Thailand, local suppliers should enjoy the benefit.