Myanmar’s inbound operators worry groups giving way to FITs

MYANMAR recorded a 40 per cent year-on-year increase in the number of independent foreign visitors over the first half of 2011. The rise in FIT arrivals has raised concerns among tour operators selling packaged tours.

Of the 172,244 arrivals recorded between January and June, only 5,525 came on group packages, down more than 60 per cent over the same period last year, according to data from the Ministry of Hotels and Tourism.

Seven Star Tours managing partner, Phyu Phyu Mar, said the company currently handled more FITs, who book flights and hotels rather than complete tour packages. The fluctuations in local exchange rate were among a number of reasons discouraging tourists from buying package tours, she explained.

A Yangon-based tour operator said hotel room rates were likely to jump by between 15 to 25 per cent, while most domestic airlines would hike fares by 10 per cent – or even higher for some remote destinations – during the upcoming high season from October to March.

Former Union of Myanmar Travel Association secretary, Hpone Thant, said group tour numbers could easily bounce back if tour operators designed more “interactive” packages and marketed them effectively”.

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