KUALA LUMPUR (March 10): Genting Malaysia Bhd and Genting Bhd are deemed major beneficiaries of an expected rise in the number of Chinese tourists to Malaysia after China banned travel packages to South Korea, according to Credit Suisse.

Recent news reports indicated that the travel ban, starting from the middle of this month, was due to Beijing’s retaliation against South Korea's approval to deploy the US Terminal High Altitude Area Defense (THAAD) missile shield.

Financial Times (FT) reported that "group tours departing after March 15 must be cancelled, with companies not in compliance liable to fines and having their licences revoked, according to written instructions issued by China’s tourism administration and shown to the FT by one Beijing-based agent."

Today, Credit Suisse said in a report that Malaysia was expected to benefit from the ban "as some Chinese tourists might choose to go to other locations in Asia instead of (South Korea)."

"We believe Genting Malaysia and Genting Bhd are more geared to the return of Chinese tourism, with the expansion of the casino and the reopening of the theme park in 2017, which may mark the beginning of another leg-up for free cash flows," Credit Suisse said.