Raphael Stevens

CNBC Travel

South Korean photographer Sang-kyu Gil has visited the Philippines around 10 times.
Drawn by the beautiful scenery and affordable prices, the 42-year-old usually spends seven to 10 days in the country. That costs him around $400 — less than half the amount he expects to spend on a similar trip within his home country.

His last visit was in 2019, before the Covid pandemic hit, but that trip is unlikely to be his last.
“Of course, I have plans to visit the Philippines again,” he told CNBC Travel in Korean.
If past trends are any indicator, the Philippines is likely to receive many visitors from South Korea when the pandemic ends.
Residents from South Korea topped the list of visitor arrivals to the Philippines every year from 2010 to 2020, according to data from the Philippines’ Department of Tourism.
China, the United States and Japan rounded out the top four over the same time period, though each has much larger populations than South Korea’s 51 million residents.

The Philippines isn’t the top destination for South Koreans, although it is in the top 10, according to a Philippines tourism official. In absolute numbers, far more South Koreans visit countries such as Japan and Vietnam.
Still, South Korean tourists visit the Philippines more than any other travelers — a situation which did not happen by accident.
Maria Corazon Jorda Apo, Philippine tourism director for South Korea, told CNBC that the Philippines targeted South Korea tourists when the country lifted its restrictions on overseas travel in 1989.
Before that, only South Koreans over 40 years old could go overseas for tourism, and there were conditions attached, the Associated Press reported. The government eased those measures as it pursued democratic development and liberalization, the report said.
The Philippines Department of Tourism recognized the opportunity and “established a foothold in Korea since 1989” by employing Korea-based marketing representatives, Apo said. The department later opened an office in Seoul in 2007 “to conduct intensive marketing and promotions,” she added.
Those efforts paid off. Before the pandemic, an estimated 1 in 5 travelers to the Philippines was from South Korea.
Here’s what brings these visitors to the Philippines.

1. Proximity and convenience

The Philippines is a favored destination because of the short travel time and direct flights between the two countries, Apo said.
It takes around four hours to get from South Korea’s Incheon Airport to Manila in the Philippines.
There are also direct flights, under five hours, to famed beach islands in the Philippines.
“Koreans can easily travel to the Philippines for a weekend getaway — usually leaving … on a Friday night, then coming back to Korea on early Monday morning,” Apo said.
By comparison, Bangkok is a six-hour flight from Incheon Airport, and getting to beaches in Thailand or Indonesia typically requires a layover.

The recommended way to travel between the Philippines’ islands is by plane.
Bryan Cambri / Eyeem | Eyeem | Getty Images

Easy access is a “prime reason” for the Philippines’ popularity among South Koreans, according to Cho Il-sang, a public relations representative from Hana Tour, a Korean travel agency.
“Among Southeast Asian countries, the flight duration is the shortest from South Korea,” he told CNBC.
University student Hyunchan Lee, 23, who visited Boracay in 2018, said the island seemed like an easy destination for people who aren’t familiar with the Philippines.
For other places in the Philippines, there are many guide books and blogs to help the planning process, he said.

2. Beautiful beaches

Philippine beaches are also a big draw for visitors from South Korea — with those around Cebu and Boracay being top favorites.
South Korea’s beaches just aren’t the same as those in the Philippines, said Alex Jeong, a Korean sales manager at Philippines-based travel agency Rakso Travel.

University student Hyunchan Lee said Boracay is a “really famous travel spot” among South Koreans.
Courtesy of Hyunchan Lee

Lee said the “best memory” from his trip to Boracay in 2018 was hanging out with friends on their hotel’s private beach.
He’s not the only one. A 2020 visitor survey found that Koreans love the “beautiful sceneries and beaches of the Philippines,” said Philippines Tourism’s Apo.

3. Low prices

Flights between the two countries are relatively cheap, and the rise of low-cost carriers have helped make the Philippines “even more popular” as a tourist destination, Hana Tour’s Cho said.
“Really cheap” flight tickets were one reason why Lee, the university student, chose to visit Boracay.
The food was also cheap and tasty, he said, adding that taxis and other forms of private transport are also inexpensive — which is important since public transportation in the Philippines isn’t well developed.

‘Post-pandemic’ travel

The Philippines reopened its borders to tourists in February, but South Korean leisure travelers are unlikely to visit for now, said Rakso Travel’s Jeong.
That’s because most people who arrive in South Korea still need to serve mandatory quarantines.
However, Apo said interest “greatly increased” when the Philippines announced its borders were reopening, although she did not elaborate on whether bookings have been made.
“We expect the tourism demand to the Philippines to recover fast once travel restrictions are lifted in both countries,” Cho of Hana Tour said.
— CNBC’s Chelsea Ong and Chery Kang contributed to this report. More

“We do want to pivot to … as long as the traveler is vaccinated and can prove that, they should be able to enter the country without quarantine,” Transport Minister S. Iswaran said.
As of the end of last year, Singapore’s passenger traffic was at about 15% of pre-Covid volume, and the city-state wants to “build on that momentum,” he added.

Singapore wants to eventually allow all travelers to skip quarantine in the country as long as they are vaccinated, Transport Minister S. Iswaran said.
In an interview with CNBC on Thursday, he said: “With greater vaccination and boosting of populations, and also better testing and safe management protocols, I think we have now been able to put in place a series of measures to restart travel.”

That has meant a steady build-up of so-called vaccinated travel lanes, Iswaran said. Singapore established these lanes with certain countries that allow vaccinated travelers to visit without having to serve quarantine.
“We do want to pivot to … as long as the traveler is vaccinated and can prove that, they should be able to enter the country without quarantine,” Iswaran said.
As of the end of last year, Singapore’s passenger traffic was at about 15% of pre-Covid volume, and the city-state wants to “build on that momentum,” he added.

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Singapore economic outlook

Iswaran also told CNBC that the recent energy price shock will hit Singapore hard.

“I think as a small open economy, we’re always significantly exposed to exogenous impact,” he said, responding to a question on how vulnerable the city-state is to recession.
“And so in this instance, the impact to these increases in the price of energy is something that will cut through the whole economy,” he added.

Oil prices have spiked since Russia invaded Ukraine as concerns rise over the already-tight supply. The U.S. banned Russian energy imports and the U.K. and European Union also said they would phase out the country’s fossil imports.
Russia is the world’s third-largest oil producer after the U.S. and Saudi Arabia. It’s also the biggest exporter of crude oil to global markets and the top supplier of natural gas to the European Union, about 43%.
However crude prices fell over 10% on Wednesday on the back of indications that the U.S. might have made progress in boosting oil production from other sources. Still, U.S. crude and international benchmark Brent are still up over 20% since the beginning of February.
Analysts have warned that a sustained spike in energy prices would send inflation soaring, hitting consumer wallets.

Read more about clean energy from CNBC Pro

Iswaran told CNBC that Singapore has accelerated its timeframe for transitioning to greener transport, such as making charging infrastructure for electric vehicles widely available by 2025. But he indicated that initiative is separate from rising energy prices.
“The transition to EVs predates this energy shock because really, it is about moving towards cleaner energy vehicles and making them the dominant component in the first instance, and eventually to take over the entire vehicle fleet that we have in Singapore,” he said.
Iswaran added that despite the push for electric vehicles, Singapore ultimately wants to prioritize reducing the number of vehicles on roads.
“Really, as a small city-state, land scarce, our approach has always been to fundamentally prioritize car-light strategy,” he said.

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Major League Baseball on Wednesday said the league has canceled more games, pushing Opening Day to April 14.
“Because of the logistical realities of the calendar, another two series are being removed from the schedule,” MLB Commissioner Robert Manfred said in a statement.
It’s been more than a week since the owners canceled the beginning of the regular season.

Major League Baseball Commissioner Rob Manfred answers questions during an MLB owner’s meeting at the Waldorf Astoria on February 10, 2022 in Orlando, Florida. Manfred addressed the ongoing lockout of players, which owners put in place after the league’s collective bargaining agreement ended on December 1, 2021.
Julio Aguilar | Getty Images Sport | Getty Images

Major League Baseball on Wednesday said the league has canceled more games, pushing Opening Day to April 14 as negotiations between the owners and players union remain at a standstill.
“Because of the logistical realities of the calendar, another two series are being removed from the schedule,” MLB Commissioner Robert Manfred said in a statement.

“I am saddened by this situation’s continued impact on our game and all those who are a part of it, especially our loyal fans,” he added.
The MLB Players Association issued their own statement, which said MLB’s decision to cancel additional games was “completely unnecessary” and players have “yet to hear back” following proposals.
It’s been more than a week since the owners canceled the beginning of the regular season. League representatives and MLB Players Association officials met this week in New York as they seek a new collective bargaining agreement. Issues that need to be resolved include MLB’s competitive balance tax and minimum salaries.
It’s possible gameplay additions, such as a pitcher’s clock, could be added, and a 14-team postseason is being floated as a possible bargaining chip, too. There were 10 postseason teams last year.
Last week, Manfred canceled the first two series of the 2022 regular season, totaling more than 90 games. Manfred called MLB’s previous proposal its best offer and added “players will not get paid” for games missed. 

Playoff expansion

On the playoff front, MLB envisions a 14-team format going forward, with a bye for the top team in the American League and National League. Under MLB’s format, division winners would host a best-of-three series with all the games at their home field. Higher-seeded teams would also select their opponent.
The players prefer 12 teams in the playoffs, but last weekend media reports suggested MLBPA officials would consider 14 teams and include a “ghost win” for division winners. That means higher-seed clubs only need to win two games to advance, while the away team needs a series sweep. 
The league ditched that idea, though. The union’s postseason proposal “raises serious issues and is not a viable path forward,” MLB spokesman Glen Caplin said, according to the Associated Press.
If MLB does expand to a 14-team postseason, it reportedly would add an extra $100 million per season via media rights. New TV deals with ESPN, Turner and Fox start for the 2022 season and represent roughly $1.8 billion in annual revenue over this decade for MLB. ESPN would get extra postseason games as part of its package.

Luxury tax, gameplay limits, support fund

Owners and players remain at odds over MLB’s luxury tax line. 
In the last CBA, the tax line was $210 million, up from $195 million in 2017. MLB offered to increase the luxury tax to $220 million in 2022. That would increase to $230 million by 2026. MLBPA wants the league to raise the tax line, allowing more teams to spend on players without the payroll penalties.
In MLBPA’s latest proposal, players indicated they could be in favor of adding a pitcher’s clock and limiting defensive shifts that contributed to lack of action in MLB games. The additions could be added as soon as the 2023 season but what MLBPA is seeking in exchange for gameplay items is unclear.
Though players aren’t being paid, MLBPA issues stipends totaling a little more than $12,000 to each player during the lockout. MLBPA also started a $1 million fund for stadium workers affected by the work stoppage.
“This fund is intended to support workers who are most affected by the MLB-imposed lockout but whose livelihoods have been disregarded by the owners in their efforts to pressure players into accepting an unfair deal,” MLB executive director Tony Clark said in a statement.
MLB matched the $1 million fund to help workers.

Blame and business impact

MLB brass is getting the lion’s share of the blame for the labor stoppage. A study released by research firm Morning Consult said 45% of fans blame MLB owners for failure to reach a new agreement. That’s up from 33% who blamed owners for the dispute around the shortened 2020 season. Twenty one percent blame the players.
The lockout is already taking a toll on some markets. The Wall Street Journal projects over $1 billion in losses for the Arizona and Florida spring training territories. And most of the local revenue for MLB clubs is temporality paused due to the lockout.
Longtime sports marketing executive Tony Ponturo said conversations with corporate sponsors likely have started and MLB clubs “are not getting their money until the games are played.” However, Ponturo added clubs could attempt to offer extra ad inventory to partners instead of refunding money, which he projects isn’t as significant during the first month of the season.
“But as it starts to drag, and their image is downgraded because you get angry fans – if it becomes a disaster as it did in 1994-95” – companies could elect to walk away, said Ponturo, the former vice president of global sports and entertainment marketing at Anheuser-Busch.
Turner Sports chief revenue officer Jon Diament said Tuesday companies are still waiting to buy regular-season MLB ad inventory, but they aren’t spending their baseball ad budgets on other programing just yet.
But how long marketers will wait for baseball is unclear, especially since Turner Sports can offer better inventory around the National Basketball Association and the National Hockey League, as MLB remains deadlocked in a labor dispute.
“It’s embarrassing to be where we are,” Yankees president Randy Levine told ESPN’s “The Michael Kay Show” on Monday while discussing the lockout.
Levine also rejected the notion that owners don’t care about missing games in April, as it is considered a low-revenue month.
“We’re all sick to lose any games,” he said. “Losing any games is bad. Each game we lose, we lose a lot of money. Each game the players lose, they lose salary. That’s horrible.”
Levine added he’s “very afraid” fans could lose interest in MLB if the lockout persists.

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VW is resurrecting its iconic microbus — the quintessential van associated with hippie counterculture of the 1960s — as an all-electric van called the ID. Buzz.
The German automaker on Wednesday finally unveiled the electric vehicle as a 21st-century descendent of its T1 Microbus.
A five-passenger version is expected to go on sale in Europe later this year, followed by a larger six- or seven-seat version that’s slated to arrive in the U.S. in 2024.

Volkswagen is resurrecting its iconic microbus — the quintessential van associated with traveling Deadheads and the 1960s counterculture — as an all-electric van called the ID. Buzz.
The German automaker on Wednesday finally unveiled the electric vehicle as a 21st-century descendent of its T1 Microbus. VW has previewed such a product for more than 20 years through concept vehicles, including a well-received EV called the ID Buzz in 2017.

VW ID. Buzz

“The T1 — an icon of the 1950s — represents freedom and the democratization of mobility. With the ID. Buzz, we are transferring the T1 DNA to the present day and thus into the era of electric mobility and sustainability,” Jozef Kaban, head of Volkswagen design, said in a statement. While the original microbus was first manufactured in the ’50s, it became a cult phenomenon among the hippie generation in the next decade.
The ID. Buzz features large circular “VW” badges on the front and back of the vehicle — homages to the original microbus. It also features large windows around the vehicle, creating a greenhouse effect, and several other styling nods to its famed predecessor.

Volkswagen ID. Buzz

Two-tone ID. Buzz models, similar to the originals, will have Candy White roofs and V-shaped hoods. The lower portion of the vehicle will be available in four colors: Lime Yellow, Starlight Blue, Energetic Orange and Bay Leaf Green.
But don’t expect to round up all your friends and head west with your guitars just yet. The five-passenger vehicle is expected to go on sale in Europe later this year, followed by a larger six- or seven-seat version that’s slated to arrive in the U.S. in 2024.

Volkswagen ID. Buzz

VW did not release pricing or performance specifications for the U.S.-bound model, saying more details will be available closer to the vehicle’s launch.

For Europe, the smaller van, including a cargo version, will be capable of 201 horsepower and 229 foot-pounds of torque. VW said additional versions with various ranges and power output levels are expected beginning in 2023. The automaker did not release the electric range of the vehicle.
With DC fast charging, the ID. Buzz can charge up to 80% in 30 minutes, according to VW.

Volkswagen ID. Buzz Cargo van

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Consumers hoping to switch to an all-electric or more fuel-efficient vehicle, while Russia’s invasion of Ukraine pushes gas prices to record highs, will largely be out of luck.
A combination of supply chain problems, pent-up demand and record-low vehicle inventory levels means many new cars and trucks, including EVs, are already spoken for before they reach dealers lots.
Customers face months, if not years, of wait time to purchase EVs.

High gas prices are displayed at a Shell station on March 7, 2022 in Los Angeles, California.
Mario Tama | Getty Images News | Getty Images

Consumers hoping to switch to an all-electric or more fuel-efficient vehicle, while Russia’s invasion of Ukraine pushes gas prices to record highs, will largely be out of luck.
A combination of supply chain problems, pent-up demand and record-low vehicle inventory levels means many new cars and trucks, including EVs, are already spoken for before they reach dealers lots. Those that are readily available are more often large pickups, SUVs and crossovers, since many automakers dropped or deprioritized small car production in recent years in exchange for vehicles with higher margins.

“Even for people who want to switch to electric, they have nowhere to go,” said Jessica Caldwell, executive director of insights at Edmunds.com. “Anything you’re looking to buy, you’re on a waitlist … or even if you’re looking to downsize your purchase, you’re paying top dollar. It just doesn’t make sense to make a move right now.”
Gas prices have surged since Russian President Vladimir Putin invaded Ukraine two weeks ago. The national average for a gallon of gas is $4.06, up 45 cents in a week and $1.30 more than a year ago, according to AAA. The U.S. and other countries responded to the invasion with sanctions against Russia, including bans or reductions of Russian oil imports.
That uncertainty and potential scarcity could continue to show up at the pump.
Meanwhile, customers face months, if not years, of wait time to purchase EVs. Luxury models are easier to find, but come at little to no discounts right now.

“EVs are great if you can get them (and can afford them),” Morgan Stanley analyst Adam Jonas wrote Wednesday in a note to investors.

U.S. vehicle inventory levels are down about 60% from a year ago and 70% from 2020 to roughly 1.1 million vehicles, according to Cox Automotive. EVs and hybrids only represent about 25,100 units, or 2.4% of that total supply, as of Feb. 21, according to the company.
“If your plan is to switch to an EV, a hybrid or even a small vehicle, good luck,” said Michelle Krebs, executive analyst at Cox Automotive. “There are not many of them available.”
Among the most readily available vehicles are the Ram 1500 and Chevy Silverado pickups, Jeep Grand Cherokee L SUV and Mazda CX-5 and Ford Escape crossovers, Cox reports. The least available are the Kia Telluride and Subaru Forester SUVs as well as the Honda Civic and Toyota Corolla sedans.

Automakers have shifted production priorities toward high-demand and high-profit trucks and SUVs as supply chain disruptions and parts shortages have wreaked havoc on the automotive industry for more than a year now.
As a result, and with those problems expected to escalate due to Russia’s invasion of Ukraine, many automakers are essentially selling whatever they can produce.
“People will buy what they can get,” said Jay Joseph, American Honda Motor Co. vice president of marketing & customer Experience. “There isn’t inventory for people to have choice. We’re seeing people accepting availability.”

Read more about electric vehicles from CNBC Pro

Joseph said about 60% of Honda vehicles are already sold before they arrive at dealer lots. Before the recent inventory squeeze, roughly 75% of Honda’s vehicle sales took place on site, he said.
Industry experts don’t foresee gas prices, even at record levels, spurring long-term changes in what Americans decide to drive. If anything, the spike at the pump may change the amount they choose to drive — at least until gas prices stabilize at a lower level.
“We see these temporary shifts,” Joseph said. “Long-term, Americans are very adaptable to fuel prices. It depends how long the fuel price stay high; it depends how long the availability stays the way it is.”
—CNBC’s Michael Bloom contributed to this report.

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