The Airports of Thailand Public Company Limited is aiming for an ambitious challenge: in collaboration with the Thai government, the company will be expanding Bangkok’s Suvarnabhumi and Don Mueang International Airport to accommodate for a population as large as the Republic of Korea.

The President of Airports of Thailand Public Company Limited, Mrs. Nitinai Sirismatthakarn states, the expansion plan will proceed to 2022 to increase the total accommodation from 75 million visitors in Bangkok’s Suvarnabhumi Airport to 90 million visitors and Don Mueang International Airport to increase its accommodation to 40 million visitors. The company also runs several other airports in Thailand, including Phuket International Airport. Chiang Rai and Chiang Mai airport will both receive a series of expansion and renovation with a total investment of 10 billion Baht to be completed by 2022.

“We are aiming to invest into 6 different major airports in Thailand in the next ten years with 6 billion USD,” Mr. Nitinai acclaims in an interview last year. The Suvharnabhumi Airport will receive a new look by 2021 when the third runway is complete along with a new midfield satellite terminal by 2022.

Tourism is one of the major pillars and the powerhouse to Thailand’s economy, and is one of the main reasons to pressurize the government and the Airports of Thailand Public Company Limited to renovate the airports to accommodate for the country’s economic movement. With the new structures to welcome increase flights, the company may be able to uphold its revenue by 50% per year once the expansion completes by 2020.

In 2017, the stock of Airports of Thailand Public Company Limited increased by 18%, 3% more than the average SET index in Thailand. As of now, the company’s revenue in the last 12 months has increased by 28.7 times, more than the average of 22.5 times in the last 5 years.

Suvarnabhumi International Airport’s new midfield satellite terminal will be able to accommodate 60 million visitors and become a major structure at the airport to accommodate the rising demand from tourism. The newer terminal, will be able to provide facilities for an additional of 30 million visitor.

The Thai government has been propelling the country’s infrastructure projects to craft Thailand into the second largest economy in South East Asia. Tourism accounts for 18% of Thailand’s GDP, and it remains critical for the Thai economy to expand starting with its airport expansion initiatives.

Source: Bloomsberg Newsweek, China News