Manufacturing activity and travel bookings in Southeast Asia have both improved since the start of the year, two different sets of data show.
Thailand’s manufacturing purchasing managers’ index (PMI) rose to a record in February, while the Philippines rebounded to its highest level in three years, according to business information provider IHS Markit. Vietnam and Malaysia also improved, the index showed.
Indonesia saw the biggest decline among its neighbors due to a resurgence of Covid-19 infections, but its purchasing managers’ index remained above the 50 mark that separates expansion from contraction, IHS Markit said.
Lewis Cooper, economist at IHS Markit, said: “Manufacturing conditions in ASEAN improved strongly in February, with the PMI holding at the highest level on record as output picked up again amid the fastest upturn in new jobs since October last year. Steady growth.”
Ukraine war remains the biggest risk factor
However, he added that the Ukraine war has a strong risk of dampening growth and adding new fuel to inflation at a time when crude oil prices have hit multi-year highs. Given this development, Southeast Asia should prepare for the potential consequences of an invasion of Ukraine and tighter sanctions on Russia.
Meanwhile, international bookings for flights to Southeast Asian countries that are easing strict border controls related to the Covid-19 pandemic rose sharply in January, data from online travel company Skyscanner showed.
However, the base for the recovery is low. International passenger traffic in the Asia-Pacific region is down 93% from pre-pandemic levels last year, leaving airlines heavily dependent on cargo for revenue, while China’s huge outbound travel market remains closed.
However, countries such as Thailand, the Philippines, Vietnam, Indonesia and Singapore are emerging from suspensions associated with Omicron variants and reopening to vaccinated travelers.
Strong bookings from UK, US, Germany
According to Paul Whiteway, Skyscanner’s senior regional director for Asia Pacific, there was a 19% to 300% increase in economy class bookings returning to destinations such as the UK, US and Germany in January compared to December. Reuters.
“Over the next few weeks, we will see the market react to this news, with airlines announcing new schedules and building capacity to allow large-scale international travel to return,” he said.
However, the Russia-Ukraine war is expected to dampen the recovery as regional tour operators count on a rebound in Russian and Ukrainian tourists. Before the pandemic, they were the mainstay of tourism, especially in Phuket and Pattaya in Thailand and the seaside resort towns of Da Nang and Nha Trang in Vietnam.
Russians keep pouring in, but spending power declines
Russian tourists ranked first in Thailand in the first 22 days of the resumption of the simplified entry program in February 2022, with 13,063 Russian arrivals during the period, followed by 10,412 tourists from Germany and 8,900 tourists from France.
So far, Russian commercial airlines including Aeroflot, Ural Airlines and S7 Airlines are still arriving in Thailand on time, but the outlook is bleak as the spending power of Russians is evaporating. Since the start of the Ukrainian invasion on February 24, the Russian ruble has lost nearly 24% against the Thai baht as of March 1, and has fallen similarly against other regional currencies.
Vietnam to fully reopen to foreign tourists on March 15, 2022 Manufacturing activity and travel bookings in Southeast Asia have both improved since the start of the year, two different sets of data show. Thailand’s manufacturing purchasing managers’ index (PMI) rose to a record in February, while the Philippines rebounded to its highest level in three years, according to business information provider IHS Markit. Vietnam and Malaysia also improved, the index showed. Indonesia saw the biggest drop among its neighbors due to a resurgence of Covid-19 infections, but its PMI remains above the 50 mark, the…
Manufacturing activity and travel bookings in Southeast Asia have both improved since the start of the year, two different sets of data show.
Thailand’s manufacturing purchasing managers’ index (PMI) rose to a record in February, while the Philippines rebounded to its highest level in three years, according to business information provider IHS Markit. Vietnam and Malaysia also improved, the index showed.
Indonesia saw the biggest drop among its neighbors due to a resurgence of Covid-19 infections, but its purchasing managers’ index remained above the 50 mark that separates expansion from contraction, IHS Markit said.
Lewis Cooper, economist at IHS Markit, said: “Manufacturing conditions in ASEAN improved strongly in February, with the PMI holding at the highest level on record as output picked up again amid the fastest upturn in new jobs since October last year. Steady growth.”
Ukraine war remains the biggest risk factor
However, he added that the Ukraine war has a strong risk of dampening growth and adding new fuel to inflation at a time when crude oil prices have hit multi-year highs. Given this development, Southeast Asia should prepare for the potential consequences of an invasion of Ukraine and tighter sanctions on Russia.
Meanwhile, international bookings for flights to Southeast Asian countries that are easing strict border controls related to the Covid-19 pandemic rose sharply in January, data from online travel company Skyscanner showed.
However, the base for the recovery is low. International passenger traffic in the Asia-Pacific region is down 93% from pre-pandemic levels last year, leaving airlines heavily dependent on cargo for revenue, while China’s huge outbound travel market remains closed.
However, countries such as Thailand, the Philippines, Vietnam, Indonesia and Singapore are emerging from suspensions associated with Omicron variants and reopening to vaccinated travelers.
Strong bookings from UK, US, Germany
According to Paul Whiteway, Skyscanner’s senior regional director for Asia Pacific, there was a 19% to 300% increase in economy class bookings returning to destinations such as the UK, US and Germany in January compared to December. Reuters.
“Over the next few weeks, we will see the market react to this news, with airlines announcing new schedules and building capacity to allow large-scale international travel to return,” he said.
However, the Russia-Ukraine war is expected to dampen the recovery as regional tour operators count on a rebound in Russian and Ukrainian tourists. Before the pandemic, they were the mainstay of tourism, especially in Phuket and Pattaya in Thailand and the seaside resort towns of Da Nang and Nha Trang in Vietnam.
Russians keep pouring in, but spending power declines
Russian tourists ranked first in Thailand in the first 22 days of the resumption of the simplified entry program in February 2022, with 13,063 Russian arrivals during the period, followed by 10,412 tourists from Germany and 8,900 tourists from France.
So far, Russian commercial airlines including Aeroflot, Ural Airlines and S7 Airlines are still arriving in Thailand on time, but the outlook is bleak as the spending power of Russians is evaporating. Since the start of the Ukrainian invasion on February 24, the Russian ruble has lost nearly 24% against the Thai baht as of March 1, and has fallen similarly against other regional currencies.
