Reopening of more economies boosts OFWs remittance growth PAL to ramp up China routes

Flag carrier Philippine Airlines (PAL) will continue to ramp up its services to and from various China routes, reopening destinations this February until March.

PAL will relaunch Beijing flights on Feb. 21, and Quanzhou (Jinjiang) and Macau on March 19 and 26, respectively. Direct services to Shanghai was reopened on Feb. 14.

“We are forging ahead with the restoration of PAL’s Greater China flight network, an investment that will strengthen our connections to the economic hubs in the mainland and help boost bilateral relations between the Filipino and Chinese people,” said PAL president Stanley Ng in a statement on Wednesday.

He added that PAL is hoping that the relaunch of Beijing and Shanghai services will help fuel a rebound in tourist and business travel. “Our goal is to once again operate the largest network of flights on multiple routes between mainland China and the Philippines,” he said.

PAL currently flies to Xiamen and Guangzhou (Canton). From Feb. 25, flights between Manila and Xiamen will increase to thrice weekly from once weekly. The current once weekly Manila-Guangzhou flight will also increase to twice weekly starting Feb. 16, and daily services are being eyed beginning March 26.

Total inflows from overseas Filipino workers (OFWs) posted a fresh monthly record-high of USD3.49 billion in December 2022, bringing the fullyear figure to an all-time high of USD36.14 billion, up by 3.6 percent.

Remittances account for around 9 percent of the country’s annual output for several decades now and these are among the structural sources of the country’s foreign reserves.

The Manila-Jinjiang-Manila flights are scheduled on March 19, 22 and 24, and daily flights will begin on March 26.

Twice weekly flights between Manila and Macau are scheduled starting March 26. On the same day, the thrice weekly operations to Shanghai will be increased to daily operations.

Airlines have been waiting to resume services to China as these were halted due to pandemic-related border restrictions.

Pre-pandemic, PAL had a total of 34 weekly services to Beijing, Guangzhou, Jinjiang, and Xiamen.

The carrier said it is working closely with Chinese and Philippine health and aviation authorities to ensure the highest level of health safety protections for travelers. (PNA)

Data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed that cash remittances last December registered an annual jump of 5.8 percent to USD3.16 billion, up from year-ago’s USD2.99 billion.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort expects further improvement in remittances, citing more opening and recovery of economies hosting OFWs.

He said these developments open more opportunities for job creation that benefits the OFWs, among others.

“OFW remittances at new record highs on a monthly basis, a bright spot for the Philippine economy in terms of spurring/supporting consumer spending, which accounts for at least 75 percent of the economy, and in turn, support faster GDP (gross domestic product)/economic growth,” he added.

Ricafort said sustained rise of remittances as of last December “may be attributed to the relatively higher prices/inflation that may have required the sending of more remittances to cope up with higher prices of goods and services for OFWs and their families/dependents in the Philippines.”

The rate of domestic price increases posted a new 14-year high of 8.7 percent last December due largely to the faster rise in the housing, water, electricity, gas and other fuels index.

Amidst the growth in remittances, Ricafort said risks remain and among these include the possible recession in the United States, the economic impact of discovery of new and more contagious coronavirus disease 2019 (Covid-19) variants, as well as increased infection cases in China following its reopening in late 2022.

He said the elevated inflation in countries hosting OFWs “could potentially reduce OFWs’ disposable income and in turn, the amount of remittances sent to the Philippines.”

He added Russia’s invasion of Ukraine is another risk as could slow down global economic recovery prospects. (PNA)