Myanmar introduces rate cap for hotels

07 Jul 2012  580 | World Travel Fairs

MYANMAR’s Ministry of Hotels & Tourism has introduced a rate cap of US$150 per room per night for hotels under its Foreign Direct Investment (FDI) scheme.

The ministry implemented the rate cap in the wake of complaints from both local and international travel companies about how indiscriminate room pricing was harming the image of Myanmar’s tourism industry (TTG Asia e-Daily, May 4, 2012).

Minister of Hotels & Tourism, U Tint Hsan, also warned that hotel room rates in Myanmar should not be overpriced compared to neighboring countries – especially those in ASEAN.

“If the FDI hotels fail to follow the ministry’s ruling, we will take some serious steps such as not recommending the visa extension of general managers from FDI hotels, and will also review the extension of the lend lease period,” he said.

Ma Sabei Aung, managing director, Nature Dream Travels & Tours Burma, said: “My company lost many tour bookings due to this unpleasant situation. How can we sell our tours if (the hotels) are increasing their room rates so frequently?”

“We were really worried that we would lose our partner agents from overseas if this situation was allowed to continue,” she added.

Sourced: ttgasia