KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga Research) has maintained its neutral stance on the aviation sector despite projecting a 15 per cent boost in number of visitors to Malaysia.
It estimates 31 million visitors for Malaysia, in line with government's projections, with sustained air travel recovery.
Kenanga Research said a major contributor to this growth is the rebound in tourist arrivals, particularly Chinese tourists that historically accounted for around 12 per cent of total arrivals.
"China and India's 30-day visa free travel into Malaysia led to an 82 per cent increase. In September, China and India's recovery stands at 123 per cent and 90 per cent respectively against 2019 levels."Also helping is China agreeing to extend its visa exemption facility for Malaysian citizens until the end of 2025 while Malaysia will extend the visa exemption for Chinese citizens until the end of 2026," it added.
Malaysians entering China from Nov 30, 2024 will be able to enjoy visa-free stays for 30 days until Dec 31, 2025.
Kenanga Research said the measures should drive growth in Malaysia Airports Holdibgs Bhd's passenger throughput and Capital A Bhd's passenger demand in 2025.
It projects MAHB's system-wide passenger throughput to rise by 11 per cent to 146 million in 2025.
The firm does not have a pick for the sector.