Southeast Asia’s tourism numbers catching up, but Thailand’s prospects questioned

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by Arno Maierbrugger - May 2, 2022 719

With a recent relaxing of entry rules, most of Southeast Asia is reacting to the easing Covid-19 pandemic and reopening for travel, with airlines filling an increasing number of seats as holiday-starved masses arrange overseas vacations for the first time in two years.

The upward momentum gathered pace in April and is now in full swing as popular tourist destinations like Thailand, Malaysia and Indonesia have scrapped quarantine regulations for vaccinated travelers.

Singapore has been taking the lead so far due to clearly simplified entry rules. The city state is only asking for proof of full vaccination and wants visitors to install a tracing app on their phones after entry. As a result, air passenger traffic to Singapore reached 400,000, or 31 per cent of pre-Covid-19 levels, in the week ending April 17, Bloomberg News cited the country’s civil aviation authority.

Most Covid-19 tests scrapped

Malaysia asks vaccinated travelers to upload their proof of vaccination to an app and then grants them a “Digital Traveler’s Card” for entry. No tests are required for them.

To enter Indonesia, fully vaccinated travelers must still show a certificate with proof of a negative PCR taken within 48 hours of departure, but they no longer need to take another PCR test on arrival.

Thailand, which has eased its cumbersome “Thailand Pass” procedures by implementing a simpler process for fully vaccinated tourists, is still asking for a mandatory Covid-19 insurance that covers visitors for the duration of their stay. No tests are required anymore for those with recognised vaccine proof.

In the country, where international tourism contributes about 15 per cent (and informally substantially more) to gross domestic product, the number of foreign visitors rose 38 per cent in March from February. Travelers from Singapore accounted for the most, followed by the UK, India, Germany and Australia. The Thai government said on April 27 it expects tourism arrivals to reach 6.1 million this year, compared with only 427,869 in 2021. The figure was nearly 40 million in 2019.

JP Morgan downgraded Thailand’s credit rating on tourism recovery doubts

However, international analysts are not so confident in the uptick of Thailand’s tourism sector. Analysts at US investment bank JP Morgan downgraded Thailand’s equities rating and the rating of its industrial sector on May 2, citing the slow pace of recovery in the tourism industry due to rising inflation, higher air ticket prices and a surge in Covid-19 cases and the outside travel ban in China, from where about a quarter of Thailand’s international visitors used to come in pre-pandemic times.

JP Morgan said the tourism industry in Southeast Asia’s second-largest economy by gross domestic product faces several headwinds, apart from soaring inflation globally also a generally weakening consumer sentiment and foreign exchange fluctuations. The bank’s brokerage cut the two ratings to “neutral” from “overweight.”

Forward bookings show that Thailand is expected to reach 25 per cent of pre-pandemic levels – or ten million annual visitors – in the mid-term, behind levels of 72 per cent and 65 per cent for Singapore and the Philippines, respectively.

 

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Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

With a recent relaxing of entry rules, most of Southeast Asia is reacting to the easing Covid-19 pandemic and reopening for travel, with airlines filling an increasing number of seats as holiday-starved masses arrange overseas vacations for the first time in two years. The upward momentum gathered pace in April and is now in full swing as popular tourist destinations like Thailand, Malaysia and Indonesia have scrapped quarantine regulations for vaccinated travelers. Singapore has been taking the lead so far due to clearly simplified entry rules. The city state is only asking for proof of full vaccination and wants visitors...

With a recent relaxing of entry rules, most of Southeast Asia is reacting to the easing Covid-19 pandemic and reopening for travel, with airlines filling an increasing number of seats as holiday-starved masses arrange overseas vacations for the first time in two years.

The upward momentum gathered pace in April and is now in full swing as popular tourist destinations like Thailand, Malaysia and Indonesia have scrapped quarantine regulations for vaccinated travelers.

Singapore has been taking the lead so far due to clearly simplified entry rules. The city state is only asking for proof of full vaccination and wants visitors to install a tracing app on their phones after entry. As a result, air passenger traffic to Singapore reached 400,000, or 31 per cent of pre-Covid-19 levels, in the week ending April 17, Bloomberg News cited the country’s civil aviation authority.

Most Covid-19 tests scrapped

Malaysia asks vaccinated travelers to upload their proof of vaccination to an app and then grants them a “Digital Traveler’s Card” for entry. No tests are required for them.

To enter Indonesia, fully vaccinated travelers must still show a certificate with proof of a negative PCR taken within 48 hours of departure, but they no longer need to take another PCR test on arrival.

Thailand, which has eased its cumbersome “Thailand Pass” procedures by implementing a simpler process for fully vaccinated tourists, is still asking for a mandatory Covid-19 insurance that covers visitors for the duration of their stay. No tests are required anymore for those with recognised vaccine proof.

In the country, where international tourism contributes about 15 per cent (and informally substantially more) to gross domestic product, the number of foreign visitors rose 38 per cent in March from February. Travelers from Singapore accounted for the most, followed by the UK, India, Germany and Australia. The Thai government said on April 27 it expects tourism arrivals to reach 6.1 million this year, compared with only 427,869 in 2021. The figure was nearly 40 million in 2019.

JP Morgan downgraded Thailand’s credit rating on tourism recovery doubts

However, international analysts are not so confident in the uptick of Thailand’s tourism sector. Analysts at US investment bank JP Morgan downgraded Thailand’s equities rating and the rating of its industrial sector on May 2, citing the slow pace of recovery in the tourism industry due to rising inflation, higher air ticket prices and a surge in Covid-19 cases and the outside travel ban in China, from where about a quarter of Thailand’s international visitors used to come in pre-pandemic times.

JP Morgan said the tourism industry in Southeast Asia’s second-largest economy by gross domestic product faces several headwinds, apart from soaring inflation globally also a generally weakening consumer sentiment and foreign exchange fluctuations. The bank’s brokerage cut the two ratings to “neutral” from “overweight.”

Forward bookings show that Thailand is expected to reach 25 per cent of pre-pandemic levels – or ten million annual visitors – in the mid-term, behind levels of 72 per cent and 65 per cent for Singapore and the Philippines, respectively.

 

Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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• TAGS
• Covid-19 restrictions
• Entry regulations
• Indonesia
• Malaysia
• Philippines
• Singapore
• Southeast Asia
• Thailand

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