Myanmar’s star rising despite hotel woes

MYANMAR’S shift to an open economy has transformed its tourism sector in recent years, and while European buyers at TRAVEX 2013 say the country is a rising star, they are calling for improvements in service and room rates.

Kerstin Streich, senior product manager Asia of Tischler Reisen, based in Germany, said: “We have sent many FITs to Myanmar over the last three years. Tourist inflow has increased 25 per cent every year over the last two years.”

France-based tour company Abako’s general manager, Jose Henrique Goncalves, said: “We sent five small incentive groups of 20-25 pax each to Myanmar last year, and got good feedback. This year we expect business to Myanmar to grow by 50 per cent.”

Goncalves believes that Myanmar will become a “single destination focus” for his leisure clients who are drawn to the culture, history and lifestyle of the locals.

Encouraged by a rise in enquiries from clients on joint Vietnam-Myanmar itineraries, Euro Tourism Azerbaijan will launch tours to the two destinations from next month, to run till April and resume in October. Its president Azad Aliyev predicted Myanmar would be popular for a long time to come.

According to the Ministry of Hotels & Tourism, arrivals totalled 1.1 million in 2012, a 30 per cent increase over 2011. The ministry expects similar growth this year, projecting arrivals of 1.3-1.5 million.

However, Tischler Reisen’s Streich lamented: “Hotel rates are very high but the quality of service and guides are still very basic.” She said five-star hotels command US$250, much higher than her desired US$150.

The shortage of international standard hotels in destinations such as Yangon, Mandalay, Bagan and Inle is also causing a headache, a problem the ministry is moving to remedy.

According to Kyi Kyi Aye, consultant to the Tourism Promotion Department, Ministry of Hotels & Tourism, five new hotels with more than 1,000 rooms are under construction, and 56 more with 4,000 rooms are due to open this year.

These will join the existing collection of 787 star-rated hotels offering 28,291 rooms, of which 30 properties or 5,207 keys were foreign investment projects completed in 2012.

Kyi Kyi Aye said the ministry checks properties to ensure they meet international standards, adding that it would step in to help should they require assistance. Meanwhile, the ministry is also formulating its tourism master plan, expected to be rolled out by end-March.

Read more in the ATF Daily

Additional reporting by Mimi Hudoyo

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