Morgan Stanley says recently released May tourist arrival data for Singapore, Thailand “further corroborate a diverging sort of trend that is becoming evident in the tourism sector in these two Asean countries”, according to Dow Jones.

Morgan Stanley notes May arrivals for Singapore rose robust 30.3% on year (vs +20.5% on year in April) — second-highest growth rate in Asia ex-Japan — Thailand arrivals fell 13% on year (vs April’s +2% on year), sharpest decline in AXJ.

“Tourist arrivals for Singapore have shown robust double-digit growth since the beginning of the year...Thailand have performed poorly over the three months beginning March, when the protests by the Red Shirts began to create political uncertainty and unease,” says Morgan Stanley.

The research house adds momentum divergence could stay for while, with Singapore’s tourism supported by recently opened integrated resorts, upcoming events Youth Olympic Games. In Thailand, “a meaningful recovery would hinge on the political climate as well as the global macro environment”.