South-east Asia is open for business but tourism recovery is elusive for now: analysts

SOUTH-EAST Asia is back in business again, going by several countries' apparent zeal to declare a relaxation of border controls, but economists told The Business Times this may not necessarily translate to a swift recovery for the region just yet.

Despite the pent-up demand for travel, the pick-up is likely to be measured and "subject to diminished multipliers", said Vishnu Varathan, head of economics and strategy for Asia and Oceania treasury at Mizuho Bank.

"For one, the reopening at these early stages is still targeted and conditional rather than unfettered. Accordingly, the pick-up will be measured in the extent of upswing to make-up for pre-Covid-19 shortfall. Moreover, the varying restrictions on tests and pre-travel confinements will also mean that tourism pick-up from travel may initially be more subdued, with a more restricted positive spillover," he said.