MYANMAR’s local tour operators are urging buyers to give them a chance instead of using regional DMCs based in Thailand or Vietnam.
A local tour operator, speaking on the condition of anonymity, expressed frustration that overseas tour operators, particularly in Europe, tended to deal with regional FDI (foreign direct investment) players instead of directly with local players because they perceive the regionals as “safer” and “more reliable” than small and medium-sized Myanmar operators.
There are about seven or eight local operators at the Myanmar stand who are eager to maximise the inbound boom that has been a long time coming.
But the bulk of the business may be going to FDI players. Though arrivals in Yangon rose 45 per cent to nearly 260,000 from January to September, as official statistics shows, local player New Motion Travels & Tours, expects to handle only 600 to 700 pax this year, albeit this represents a doubling from last year.
Another local agency, Interconnection Travels, expects to handle 1,000 pax this year and 1,200 pax next year, from 500 pax last year.
Asked how many passengers it could handle a year, New Motion’s marketing manager, Marlar Kyaw, said “as many”.
“It is good for overseas partners to deal directly with local operators as tourism is our main income and it helps livelihoods. They get better prices, while correspondence with local operators is quicker now. A few years ago, yes, it’s difficult to communicate, but now, there is Internet and the country is really changing – we are able to deal with overseas tour operators. This is why we attend trade shows such as ITB Asia and ITB Berlin, so that we can penetrate the market.
“We have to share the business of course, but if the overseas tour operators pick the small businesses, they can help these companies become bigger.”
Interconnection’s director of sales, Thant Sin Oo, said the regional tour operators were pioneers, therefore, it was understandable they had long-standing relations with partners. “It is up to us to fight for the business,” he said.
Asked what advantages local operators offered, he said: “The FDIs are big volume, group series. Local operators are able to give a more local experience as we understand our country better, plus, the groups are smaller, so we can specially tailor the programmes, unlike the fixed and less private packages of the FDIs,” he said.
Regional players such as Khiri Group said local players need not necessarily lose out as small operators. “In fact, a small player in Myanmar can become a niche player – there’s a lot of interest in that right now,” said co-founder & CEO, Willem Niemeijer.
“Right now, the Internet in Myanmar is getting more accessible. As long as you are creative, say, even with a three-person team, you can still get a business going with the Internet. Business in Myanmar is all about being small now – the (major) hotels are not even represented in the country now – unlike Thailand where it’s more about bargaining power in an established tourism industry.
“I feel that in Myanmar, small players stand as good a chance as the big players. There is certainly a lot of room for growth for all, and now is the time to start.”
Frank Hasso Wiegand, managing director, Focus Asia (Europe), said: “The advantage of regional DMCs is they operate across the region. Their strength lies in client knowledge, so Western operators know the needs of Western clients better.
“But the Burmese know their country better, so the country knowledge and client knowledge come together at a DMC. Focus Asia Myanmar is headed by only one expat, while the rest of the staff are local – we try to limit the number of expats in each office.”
Additional reporting by: Liang Xinyi
