Myanmar: Two-way tourism grows

BANGKOK, 8 August 2012: Kasikorn Research Centre estimated that Myanmar will supply 135,000 tourist visits to Thailand this year generating Bt4.2 billion in tourism revenue, while Thai visits to Myanmar should exceed 90,000.

The bank’s research centre believes as sanctions are lifted and travel restrictions on Myanmar’s citizens ease, travel will boom mainly driven by the need to source business contacts in ASEAN.

Also, inbound tourism to Myanmar is expanding fast due to pent up demand that was curtailed by sanctions in the past that discouraged international tour companies from working with the country

Myanmar is a natural resource-rich country with abundant forests, energy resources, minerals and gems and the need to market these resources will drive its business community to travel to key cities in Asia .

Myanmar’s government has set a 7% growth target for its inbound tourism, but outbound trips will grow much faster as rules regarding passport approval are eased.

The centre points out in its Myanmar assessment that foreigners can now invest in hotels with more confidence than in the past. Currently, there are only 731 hotels, motels and guest houses with an estimated 25,000 rooms across the country.

The capacity breakdown: 181 properties (6,855 rooms) in Yangon; 75 properties (2,008 rooms) in Mandalay; 75 properties (2,008 rooms) in Began.

There are 36 hotels that have foreign investors — 12 with Singaporeans; 11 with Thais; six with Japanese; four with Hong Kong residents; two with Malaysians and one with a British partner.

The centre suggested Thai investors should consider investment in 10 provinces that are close to Thailand such as resort areas near Ranong province in southern Thailand.

Some of the challenges:

• Risky investment particularly real estate capital in Myanmar’s emerging  economic areas;

• Laws and regulations for foreign investment and business in Myanmar;

• The readiness of supporting utilities such as roads, sewage systems, electricity and fresh water supply.

Myanmar allows 100% foreign ownership in four to five-star hotels; joint ventures of 35% to 99% for three-star hotels,while one to two-star hotel investments are reserved for Myanmar residents.

The country’s tourism has grown from 193,391 visits in 2008 to 391,176 visits in 2011, improving at around 26.5% a year. However, the figure includes cross border travel from Thailand, India and China.

In 2011, 66.4% of tourist arrivals to Myanmar were Asian  and the top five suppliers were China, Thailand, Malaysia, South Korea and Japan.

Just 22.6% of all arrivals are European tourists mainly from France, Germany and the United Kingdom. The centre expects foreign tourists to reach 500,000 visits, generating tourism income of around US$400 million this year.

It estimates that Myanmar will supply 135,000  tourists to Thailand in  2012, increasing 22% year-on-year and generating  income of around Bt4.2 billion and growing by 25% year-on-year.

Meanwhile, Thai tourists visiting Myanmar should reach 90,000, rising 30% year-on-year, with a spending of around Bt1.1 billion.

Sourced: ttrweekly