THE FITCH RATINGS AGENCY RECENTLY INDICATED THAT RAEM IS AMONG THE MOST BENEFITED IN THE ASIA-PACIFIC REGION WITH THE REOPENING OF CHINA. HOWEVER, LIMITATIONS ON THE NUMBER OF AVAILABLE WORKERS AND THE VOLUME OF CONSUMPTION COULD LIMIT THIS RECOVERY
Hong Kong, Macau, Thailand and Malaysia will be among the economies in the Asia-Pacific region that will benefit most this year from the removal of pandemic-related restrictive policies inside China, the Fitch Ratings report predicts.
However, the agency warns that limitations in air traffic capacity, available human resources, and lower predisposition to consumption in China may still affect this recovery.
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According to the report, analysts at Fitch Ratings already expected a strong Asia-Pacific tourism recovery in 2023, but have now highlighted that the easing of Covid-19-related travel restrictions in China has occurred “faster than anticipated,” with their forecasts now being revised upward.
“China was one of the world’s largest tourist-supplying markets before the pandemic, with total international tourism spending of 254.6 billion in 2019,” reveals the analysis by the agency, which also says it “expects a Chinese tourism renaissance to boost growth prospects in economies with substantial tourism sectors.”
The MSAR recorded higher than expected visitor arrivals during the Chinese New Year period, with daily visitor numbers exceeding 90,000, and high hotel occupancy rates recorded.
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The Macau Monetary Authority also recently indicated in a report that the local economy is expected to see a double-digit growth rate in 2023, driven by the lifting of pandemic restrictions.
Still, the rating agency warns that factors such as air traffic capacity and labor shortages still restrict growth in the region’s tourism sector.
“We continue to expect a slow recovery in Asia-Pacific’s international air traffic capacity, as it will take time for airlines to resume routes – both within China and in the region – that were suspended during the pandemic,” the report warns.
Also read: Chinese New Year will attract the largest number of tourists to Macau since the beginning of the pandemic
“Difficulties in addressing worker shortages in the air travel and tourism sectors will also have an impact. Capacity constraints and high global energy costs will contribute to high travel prices, which may further reduce tourism demand. In addition, Chinese consumer confidence in the early stages of China’s reopening may be fragile.”
