Myanmar promises much as tourism’s next frontier

AIRLINES and hoteliers are starting to sit up and take notice of Myanmar, which is expected to see an upsurge in leisure and business arrival numbers as it emerges from fifty years of military rule.

Regional low-cost carriers such as SilkAir, AirAsia and Jetstar are, as outlined by Brendan Sorbie, chief representative South-east Asia, Centre of Asia-Pacific Aviation, poised to become the main beneficiaries of political changes transforming the country.

“It’s still early days yet, but given the size of Myanmar’s population and low GDP per head, it is apparent that the potential for outbound travel utilising low-cost carriers is immense, once the economy starts to lift,” he said. “With the ASEAN open skies agreement set to take effect in 2015, Myanmar will also see an influx of arrivals.

“It’s the next huge growth market for (low-cost) aviation.”

Thai AirAsia is believed to be eyeing new routes to Myanmar, while SilkAir and Singapore Airlines are looking to fly to other cities besides the capital Yangon, according to SilkAir planning manager, Joel Goh.

“SilkAir and Singapore Airlines believe there is excellent potential for growth in Myanmar, particularly in Mandalay,” he said. “The political situation does not faze us – we’ve been operating in Myanmar since the early 1990s. Poor internal infrastructure such as lack of airport capacity outside of main cities and poorly maintained roads pose a bigger impediment to growth than politics.”

Some major hotel operators, including Starwood and Marriott have already announced their intention to open properties in Myanmar. However, hotel operators whom TTG Asia e-Daily spoke to were not as enthused.

Chetan Patel, vice-president e-commerce, Onyx Hospitality Group, said: “Even though we are thinking of developing properties in Myanmar two to three years down the road, the infrastructure as well as the political situation pose a significant challenge and could possibly derail our plans.”

“Myanmar shows a lot of hotel development potential, especially in its untouched coastal areas,” said Qin Shen, VP sales & marketing, Club Med Asia-Pacific. “However, we are not prepared to invest in Myanmar in the immediate term, as the political situation is still in flux, and accessibility to regions outside the capital is poor and patchy.”

PATA was engaged by the Myanmar government last December to lead a taskforce and carve a tourism blueprint for the country. A team, led by former interim PATA CEO Bill Calderwood, will conduct an appraisal of existing tourism infrastructure later this year.

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