Myanmar introduces new visa regulations

January 12, 2016

MYANMAR’s Ministry of Immigration and Population announced yesterday new visa regulations effective immediately.

Under the new system, there are 12 types of entry visas: Diplomatic; official; tourist; social; journalist; crew; workshop; business; employment; religious; educational; and transit.

The diplomatic visa is free and the duration offered is based on the length of duty required. The 28-day official and tourist visas cost US$20, while the 70-day business, employment, religious and education visas cost US$36. Meanwhile, the 28-day social, journalist, crew and workshop visas cost US$36. The 24-hours transit visa costs US$18.

Applications for business, workshop, crew and transit visas can be obtained on arrival at Yangon International Airport, Mandalay International Airport and Nay Pyi Taw International Airport while other visas can be applied at Myanmar embassies worldwide.

There are also three types of multiple-entry visas. Multiple-journey special re-entry visas cost US$180, while special re-entry visas cost US$54 for permitted period. Six-month re-entry visas cost US$4.

Re-entry visas can be applied in Yangon, at the Foreign Affairs Branch located at 122 Pansodan Street, Kyauktada Township.

Phyoe Wai Yar Zar, chairman of Myanmar Tourism Marketing said the new visa system was introduced to better align with ASEAN standards.

“I find this new visa system will have no significant effect on the leisure market, but it is diversifying visa categories for work and business. It will likely draw more business travelers to the country,” he added.

Ctrip to invest US$180 million in MakeMyTrip

By TTG Asia

January 12, 2016

LEADING travel service provider Ctrip.com will be investing US$180 million in MakeMyTrip, India’s largest online travel company, via convertible bonds.

Permission has also been granted for Ctrip to acquire MakeMyTrip shares in the open market. This, in addition with the shares convertible, may result in Ctrip obtaining up to 26.6 per cent of MakeMyTrip’s outstanding shares.

Once the investment is completed, Ctrip will be able to legally appoint a director for MakeMyTrip’s board of directors.

New Sofitel hotels to open in Singapore, KL

By TTG Asia

January 11, 2016

Artist impression of Tanjong Pagar Centre

SINGAPORE and Kuala Lumpur will be welcoming a new Sofitel property in 4Q2016 and 2H2016 respectively.

The 222-key Sofitel Singapore City Centre will be located between Chinatown and the CBD, and will be part of the upcoming multi-billion dollar Tanjong Pagar Centre, which will be the tallest tower in the city, standing at 290 metres, when completed. The tower also features a residential and office tower, as well as retail and event spaces.

Meanwhile, the 312-room Sofitel Kuala Lumpur Damansara is part of a new 3.4 hectares integrated development in Damansara City. The development also consists of two office towers, two luxury high-rise residences and a F&B-centred lifestyle mall.

The two new properties will be managed by AccorHotels as signed in a deal with developer GuocoLand.

Centara now known as Central Hospitality International

By TTG Asia

January 11, 2016

CENTARA Hotels & Resorts has rebranded and is now known as Central Hospitality International (CHi).

While its hotel brands, products and services remain unchanged, the new corporate identity serves to differentiate CHi from its member hotel brands.

“Our objective is to strategically grow the business and build international brand awareness and recognition through acquiring and managing hotels in global cities and resorts,” said Thirayuth Chirathivat, CEO of CHi.

“These locations will be carefully identified according not only to the global travel profile of our existing and prospective guests but also in recognition of those destinations which embrace and value the elements of Thai service style that will continue to form part of the DNA of our brands,” added Chirathivat on the inclusion of the word ‘International’ in the new name.

Currently, CHi operates Centara Grand Hotels & Resorts, Centara Hotels & Resorts, Centara Residences & Suites, Centara Boutique Collection, Centara Hotels & Resorts and COSI Hotels.

Muslim-friendly Rayani Air takes flight

By S Puvaneswary

January 11, 2016

RAYANI Air, Malaysia’s newest airline, began operations last month with services linking Kuala Lumpur to Langkawi and Kota Bharu.

The full-service carrier is positioned as a Shariah-compliant airline, with onboard food and beverages prepared by halal sources, a strict no alcohol policy, prayers recited on every route and female Muslim cabin crew donning hijabs.

Sumar Lee Hashim Lee, COO of Rayani Air said average load factor at the start will be low as operations began towards the end of the Malaysian school holidays, but from Chinese New Year onwards, the average load is expected to reach 50 to 60 per cent of capacity.

Jaafar Zamhari, managing director of Rayani Air, said the airline is operating with a fleet of two B737-400s, both 22-year-old aircraft.

Jaafar was formerly the alternate representative of Malaysia on the Council of ICAO, from 2008 to 2011. In September 2015, he retired from the Department of Civil Aviation Malaysia and joined Rayani Air.

Going forward, the airline plans to add two B737-800 aircrafts to its fleet this year and increase its domestic network to include Kuching and Kota Kinabalu. There are also plans to extend its network overseas to Jakarta and Manila as well as cities in China and the Middle East.

Langkawi International Airport is Rayani Air’s current home base with klia2 standing as its secondary hub.

When asked why Langkawi, Jaafar replied: “There are a lot of charters coming to Langkawi and we hope to tap on the tourists using these charters. Somebody must start something over there.”

The airline also hopes to offer charter services in the future.

Malaysia agents bemoan new e-visa process

By S Puvaneswary

January 11, 2016

MALAYSIA has introduced e-visa facilities for travellers from China since January 2, 2016, but the process has proven troublesome as applicants risk losing their passports, opined some Malaysian agents.

Applications must be made online, then after five working days and upon confirmation, the applicant will have to send their passport to a visa centre in China and pay RMB$50 for it to be couriered back to them. The visa fee remains at RMB$80 and processing costs RMB$120.

Mint Leong, secretary-general of the Malaysian Inbound Tourism Association, said that the old system was safer as travellers could get travel agents to handle their visas for them.

“Now there is the danger of the passport getting lost in the post. We are not seen as being tourist-friendly at all. If the system is not improved soon, we will lose market share to neighbouring countries,” she said.

John Chan, business consultant, Kris International Traveltours, opined: “The introduction of e-visa is a step in the right direction. However, the application process needs to be improved. A shorter approval process is needed, and safety and security procedures must be factored in.

“The Australian visa application procedure is a good benchmark. It is an efficient system where application procedures are hassle free, response is fast and applicants can print out the approved online visa themselves.”

Kuoni India brand to be abandoned

By Rohit Kaul

January 11, 2016

FAIRFAX Financial Holdings, which owns Thomas Cook India, will discontinue the Kuoni brand name in India in the coming months.

Fairfax had earlier acquired Kuoni Group’s travel businesses in India and Hong Kong last year and under the agreement, Fairfax has access to the Kuoni name for one year in India and five years in Hong Kong. Kuoni Hong Kong will remain in use.

Madhavan Menon, chairman and managing director, Thomas Cook India, said: “If I look at other names that we have acquired like SOTC and SITA, they are better known brands here. We will drop the Kuoni name as we go forward.”

As for Kuoni Hong Kong, Menon said that it is an established brand and “apart from the fact that it is an extremely well run business, we also clearly see that it will give us a footprint in Asia.”

Menon is also keen to leverage on its newly acquired entities to help replace the Thomas Cook brand – a name it will be losing in 2025 as part of the agreement with Thomas Cook Group UK in 2012. Menon further dispelled rumours of any change in management in both India and Hong Kong.

Additionally, Kuoni India’s inbound business, known as Kuoni Destination Management and which operates under the SITA brand, will be merged with Fairfax’s Travel Corporation of India. Meanwhile, its outbound businesses, Thomas Cook India and SOTC India, will continue to operate as two different companies, but share backend services.

Newsmaker: Urhammer preps Contiki for the future

By Paige Lee Pei Qi

January 11, 2016

WITH no prior experience in the travel industry, Casper Urhammer took on the top job at Contiki Holidays over a year ago and now plots a course for the millennials-focused tour operator to be better at what it already does best – entice 18 to 35 year-olds to go on group holidays with them.

Despite the inexperience, the 40-year-old CEO, who was most recently managing director of Groupon Australia and New Zealand, and co-founder of Groupon Denmark before that, has the advantage of international exposure and years of technological chops behind him.

Those talents are coming in handy now with Contiki launching a new website in early-2016, which he describes as being “content driven”, using “groundbreaking technology” and “100 times better” than Contiki’s present web portal. The new website will also be focused on generating leads for Contiki’s travel agents, added Urhammer.

While the mindsets of millennials remain a puzzle for many, the fledgling CEO seems to have a good handle on it. Afterall, he has just spent the last one year embarking on more than 10 Contiki trips around the world, interacting with a generation of travellers accustomed to digital formats, mobile technology and novel experiences.

Urhammer speaks to Paige Lee Pei Qi on how best to win the hearts and minds of millennials in this Newsmaker interview:

It’s been just over a year since you took over the role as CEO. How has it been settling into the industry?
It’s been really good. It doesn’t feel like a year. It feels like a lot shorter. There are so many things to learn coming to a business this size, and for me to come from somewhere out of the industry. I have been travelling 250 days over the past year to meet the various regions and sales offices to fully understand every corner of the business.

Apart from the travelling, what else has been keeping you busy at Contiki?
Two things that have taken a lot of my time is setting the vision for marketing and technology. These are critical given that our customers are the true digital natives – 18 to 35 year-olds – and it is incredibly important that we stay relevant to them and we have a bit of catching up to do.

What needs catching up?
Our current website is nearly nine years old now, so we are building a new website which will be fully mobile-optimised because we see more than half our local traffic coming from mobile. The new website will also be more engaging, innovative and more personalised. We want to create an emotional connection between young travellers and our brands. The way millennials consume media today is changing. The way you connect with them is through content. Apart from connecting with them you must ensure they are able to relate to it as well. The website will also be strongly focused on generating leads so that we can then hand over to our travel agents.

Looks like your background in technology is coming in handy?
I am a bit of a geek. I like and understand that space very well. I want to develop our digital assets here and that’s indeed my key strength that I can bring to Contiki.

So when can we see this new website launch?
Wait for it in early 2016. The website is our biggest priority. We are going to launch groundbreaking technology there in terms of how you will explore and navigate. It will be very content driven and I have no qualms about saying it will be 100 times better than our current website.

You are 40 now. How do you go about getting into the mindset of a millennial?(Laughs) I join Contiki tours quite often. This year I joined more than 10 trips. I connect with travellers even though I cannot pretend that I am a millennial. I will chat with them and I am honest about who I am and what I am here for. I will listen to the clients and get their feedback to make sure our strategies are sound.

So for example, how we are building our website now is based on three months of comprehensive research from our clients and what are their habits and challenges they face in exploring our product in a digital format.

Any memorable incidents from meeting your customers?
When I started in Contiki London, I joined a tour there on my first day and I met a lovely young girl called Mary from Arizona, USA. I asked her what her motivation for taking the trip was. She said to me: “Casper, I’m the first one in my family ever to leave America, and the first one in the family to have a passport. I have been working at a Subway for the last four years. I even ate too much Subway and gained a couple of kilos. But I did that to save as much as possible for this trip.”

Imagine the pride radiating from her to be there. To me that was so humbling. It reminded me that my most important role is to make sure that each and every traveller that goes on tour gets the time of his or her life.

How does Contiki stay appealing to millennials?
Friendships. Everyone wants to be independent but what we can provide them is the joy of being part of a group. While they want to be independent, what we do differently is that we also offer them free time. We don’t dictate what they do every minute of the day.

Contiki has a good justification in many ways. It is safe, you can trust us, we know what we are doing and you are in a good environment that guarantees fun and friendships.

Tell us more about the Travel Styles concept launched in 2014.

We don’t believe that there’s a right way to travel. Travelling is intended for everyone. There should be a product for everyone. We acknowledge that no two travellers are the same. The way we differentiate our product is based on the ways they travel. We have eight ways – Discovery Plus, High Energy, In-Depth Explorer, Easy Pace, Freestyle Camping, Sailing & Cruise, Winter & Ski, Festivals & Short Stays.

So for example if you like to wake up early in the morning, and go to bed late at night and see and do everything – you are a high energy traveller which is very popular. On the other extreme, there is an easy pace category where you get up later and spend more time in the destination.

Where are the millennials traveling to these days?
We see a lot of young travellers wanting to get to Iceland to see the Northern Lights, the Mediterranean, and also Eastern Europe with the rise in popularity of Game of Thrones.

What about the business, how has it grown?
For 2015, we are up by eight per cent which is an incredible number given how big our base is. This is in line with our targets and forecasts. For 2016, our sales figures wise, I can’t even give you a good indication. We are up so much we have to pinch our arms to make sure we are not dreaming. We are doing very well now.

Travel business outlook for 2016

By TTG Asia

January 6, 2016

Travel companies in Asia-Pacific are generally optimistic about their business prospects in 2016, with the outbound market expected to remain a bright spot

SINGAPORE
By Paige Lee Pei Qi

Inbound
Jaclyn Yeoh
Managing director, Siam Express
I have recently engaged a new Europe and China representative, hence I am looking forward to having more sales from these two regions. I will be happy if we can maintain the sales revenue as in 2015. We also need to bundle Singapore with our regional countries to sell them as one package in order to improve market share and hopefully this new marketing strategy will improve the sales performance in 2016.

Outbound
Anthony Chan
Managing director, Chan Brothers Group
We are projecting five to 10 per cent year-on-year increase in travel demand for 2016. While (evergreen) destinations such as China, Europe, Japan, Taiwan and regional cruises will remain popular, we also see a growing appetite for more exotic vacations to the Arctic Circle and South America.

We are implementing strategies to leverage technology to improve service, increase efficiency, broaden market reach and change our business model. Besides mainstream offerings, we are positioning the company as one reputed for alternative and exotic travels, a growing segment in the travel market. On the web, we are moving towards increasing our online presence to see growth regionally and worldwide.

INDONESIA
By Mimi Hudoyo

Inbound
Umberto Cadamuro
COO inbound, PACTO
Having successfully weathered the multiple challenges in 2015 and posted another excellent year in terms of profit, 2016 presents exciting and rich opportunities. With the strong demand for groups that not only cover 2016 but extends all the way to 2017, we feel we stand on solid ground.

Various challenges are afflicting our industry, yet we are able to keep expanding in new markets to maintain both profitability and a balanced market share. Our next stop is South America!

Outbound
Willy Sihombing
Managing director, Sedona Holidays Tour and Travel Medan
My outbound business prospect for 2016 is positive. While the early part of 2015 saw slower business than in 2014, demand for incentives and FITs started to pick up towards the end of 2015. I am expecting this to continue into 2016.

The aggressive promotions by NTOs like Japan, Thailand and Malaysia have helped enticed (Indonesians) to travel. Overseas tour operators have come up with new ideas and programmes to attract travellers by allowing agents like us to send two or three pax to join a sit-in-coach tour together with guests from other travel companies, etc. (The diverse tour options) make it easier for us to sell packages.

THAILAND
By Xinyi Liang-Pholsena

Inbound
Pornthip Hirunkate
Deputy CEO and managing director, Thailand, Destination Asia
2016 will be a challenging year for Destination Asia due to various factors including economics and political matters that compound on our business.

We still continue to see positive signs from our clients from the UK, Northern Europe, the US and Latin America markets. To stay on top we have to be more creative with our products and activities.

A positive sign is that there are also more cruise lines calling at Phuket, Laem Chabang and Koh Samui in 2016, and we have seen positive growth within MICE groups from the US since last year which shows confidence is returning to the destination.

Outbound
Vorapong Muchaothai
Director of sales and marketing, Standard Tour
We are seeing growth for the outbound market due to more direct flights coming in and out of Chiang Mai, where we are based. According to Thai immigration figures, the number of Thai outbound travellers from Chiang Mai is around 80,000 in 2015, and is likely to exceed 100,000 in 2016, and we are also recording a stronger interest from northern Thais to travel overseas as Chiang Mai grows in flight connectivity.

We are promoting destinations farther afield such as Japan as well as Bali, Australia and New Zealand by partnering SilkAir on chartered services via Singapore.

MALAYSIA
By S Puvaneswary

Inbound
Francis Cheong
Managing director, Apxara Travel & Events
2016 is an extremely promising year for us. As of end-November 2015, our forward quotations are already up to December 2016. With Malaysia being the most affordable ASEAN destination due to a weak ringgit, Malaysian destinations are of great value for many incoming markets.

Outbound
Adam Kamal
CEO, Olympik Holidays
Outbound business will be slow unless the ringgit strengthens. We are placing emphasis on outbound packages to Thailand, Indonesia and the Philippines as there are many LCCs flying to these destinations with affordable airfares, which is good for us.

PHILIPPINES
By Rosa Ocampo

Inbound
Bernadette De Leon
General manager, Amiable Intertours
I used to have lots of inbound groups and families but they are hurt by (the bullet-planting scam at Ninoy Aquino International Airport) and peace and order concerns. And with a lot of ASEAN destinations offering cheaper fares, accommodations and tours, plus guaranteed security, (travellers) would rather visit Vietnam, Bali, Thailand and Malaysia and fly direct to those (destinations).

Outbound
Rowena Baltazar
Sales manager, Adam’s Express Travel Group
Outbound business will continue to boom in 2016 as travel becomes even more affordable, with good rates for airfares, accommodations and tours abroad.

Japan will be the top draw as it has eased its visa requirements and its government is more active in promoting the destination.
Filipinos will troop around Asia especially to the emerging destinations of Bali, Borobudur and Vietnam, apart from old favourites of Hong Kong, Bangkok and Singapore.

(Demand for) France will ease a bit due to recent terrorist attack but Italy will pull religious trips as the Pope opened the Holy Door of the Vatican for the Year of the Poor.

HONG KONG
By Prudence Lui

Inbound
Hazen Tang
Executive director, HS Travel
Given the current global economy and falling arrivals, I am worried about business (this year). Provided that there are no major disasters or accidents this year, the city may experience around 10 per cent drop of arrivals. It’s vital for Hong Kong to develop more new products for tourism.

Outbound
Simon Wo
General manager, Premium Holidays
Foreseeable economic downturn may dampen the middle class’s appetite to travel but not high-spending professionals who will continue to seek novel destinations. Indeed, we remain cautiously optimistic because travel has become a lifestyle for Hong Kongers and airlines may come up with discounts to drive traffic.

We will channel more resources to high-end products with emphasis on South America, the North Pole and South Pole in 2016.

MACAU
By Prudence Lui

Inbound
Cooper Zhang
Manager, international department, CITS Macau
I hope it will be better than 2015 with the opening of new hotels and integrated resorts in 2016. These new offers may attract more tourists to Macau, especially from China. If the Chinese Central Government relaxes the travel permits for Chinese passport holders visiting Macau, it would definitely help.

Outbound
Sabrina Iong
General manager, EGL Tour (Macau)
The outbound traffic will be more or less the same as 2015 but this depends on the business environment and local gaming performance which affect the desire of travel. Moreover, Macanese are concerned about security when choosing a destination, so areas with terrorist attacks would be avoided. Overall speaking, we would be happy if we can maintain the same level of business achieved in 2015.

CHINA
By Caroline Boey

Inbound
Sarah Keenlyside
Founder and CEO of The Bespoke Travel Company
China is poised to become the world’s largest business travel destination in 2016, an increase we already saw last year. Many of our business travel clients are either adding sightseeing or integrating some form of cultural immersion/partner programme into their trip. We hope this uptick will continue, especially given the drop in inbound leisure and FIT travellers in 2015.
Continued improvement in the number and quality of hotels on offer in China’s less-visited cities such as Kunming and Chengdu is also likely to encourage travellers to be a little braver with their trip planning.

Outbound
Lu Hao Shuo
Deputy general manager, inbound travel division, Kunming CITS
According to my outbound colleagues, demand from Yunnan will continue to increase in 2016. Travellers are still confident of China’s economy and there is interest in visiting other parts of the world after having enjoyed domestic tours. Compared to the rising cost of domestic travel, outbound tour prices are also more stable.

South-east Asia, the Middle East and Europe are popular destinations during the peak holiday periods, and beach holidays are very attractive. But unrest and terrorist attacks are raising security concerns and have resulted in cancellations to the Middle East and Europe. Meanwhile, South Asia started picking up in 2014 at a rapid pace.

JAPAN
By Julian Ryall

Inbound
Megumi Ueda
General manager, Ayabex
We have seen a tremendous increase in foreign tourists visiting Japan in 2015 and we expect that trend to continue into 2016 as well. We are anticipating more repeat customers – including FITs, groups and MICE clients – returning to Japan. That means that we need to identify new sightseeing spots and activities for them; it is up to us to provide them with interesting and exciting new destinations that meet their needs.

Outbound
Daisuke Watanabe
Senior manager, Micronesia division, JTB World Vacations
We think (business) this year will be about the same level as 2015 for outbound tourists from Japan to our destinations. That is in part because the number of flights to Guam from Japan, except for Tokyo, will be reduced from April 2. Like other agents focused on the islands of the Pacific, we plan to draw up package tours that utilise charter flights to boost our numbers.

AUSTRALIA
By Rebecca Elliott

Inbound
Sujata Raman
Managing director, Abercrombie & Kent
In a word, excellent. The low Australian dollar undoubtedly had an impact, but so has the perceived safety of the destination as well as its clean and green image. Forward bookings are double the value that we had at the same time last year. All markets are strong into Australia including Asia, and in particular China.

Outbound
Tom Walley
Head of leisure travel, Flight Centre
Asia continues to be a big focus for us in 2016. We are gearing up for the return of our big Asia campaign that spotlights the diversity of experiences on offer with some of the hottest market deals, while travel packages to popular destinations will feature throughout the year. River cruising in Asia has emerged as a trend in 2015 and we expect this to continue, alongside the rise of youth specific tours, small group journeys and family-friendly packages.

INDIA
By Rohit Kaul

Inbound
Arun Anand
Managing director, Midtown Travels
I expect 2016 will be a positive year for the Indian inbound industry. The e-visa scheme has now been extended to 113 countries, simplifying travel to India for majority of markets. The new year will see the e-visa facility gaining momentum and playing an instrumental role in the growth of inbound markets like the UK and the US.

The Indian prime minister travelled to many countries in 2015 and created a positive image of the country globally. This, coupled with the efforts of the Ministry of Tourism and private players, will help the inbound industry to make inroads in many traditional and new markets.

Outbound
Anil Kalsi
Joint managing director, Ambe World Travels
2016 looks very promising for the travel industry. I feel that many more countries will reciprocate the visa-on-arrival facility for Indian nationals, making impulsive outbound travel a reality.

We are a nation on the move and with today’s work pressure, everyone needs more breaks to unwind. I see a huge upsurge in the honeymoon segment for which we now have a dedicated website. The luxury segment has also matured and Indians now want to experience the exclusivities of the world, so this segment too will see good demand.

Changing fortunes

By Xinyi Liang-Pholsena

January 6, 2016

The days of inflated room rates in Yangon are over, as new hotels have opened up to ease the severe room crunch. Xinyi Liang-Pholsena sizes up the new situation

It was barely three years ago when soaring demand and a paucity of rooms in Yangon sent the hotel industry booming and rates skyrocketing. The doors to the country had just opened after decades of military rule, drawing a massive influx of foreign direct investment and dramatic upswell of interest from the global travel community.

The situation is now changing, as a large increase in hotel supply has applied downward pressure on highly-inflated room rates and turned the tables for players in Yangon’s tourism field.

Supply up, rates down
Yangon’s upper-scale room supply grew in 1H2015 with an addition of 489 rooms following the opening of Novotel Yangon Max and the soft launch of Rose Garden Hotel, according to Colliers International. This led to a 23 per cent HoH expansion of the citywide stock to 2,582 rooms – a record high. The supply is expected to dramatically increase in 2016 and potentially triple by 2018, the report added.

In October 2015, Sedona Hotel Yangon soft-opened its Inya Wing, adding 431 guestrooms and suites to its existing 366-room Garden Wing to bring its total inventory to 797 keys – the biggest in town.

More international-standard hotels are debuting in the next two years. In 2016 alone, hotels poised to open their doors include the 429-room Meliá Yangon, the 300-room Pullman Yangon Myat Min, the 238-room Jasmine Palace, the 300-room Grand Centre Point Hotel and the 155-room Grand Golden View Hotel. Global hospitality brands like Kempinski and Sheraton will also emerge on Yangon’s hotel scene by 2017.

Despite the rise in visitor arrivals, the average occupancy rate has dwindled in the past three consecutive years. Based on figures from Colliers, the city-wide occupancy for upper-scale hotels dropped four and 10 per cent in 1Q2015 from the same periods in 2014 and 2013 respectively.

Meanwhile, room prices in Yangon have dipped with boost in supply. RevPAR citywide in 1Q2015 also recorded a 11.6 per cent decline after rising 3.5 per cent year-on-year between 2013 and 2014.

“In the olden days, which were just three years ago, people were throwing money and couldn’t get a room. Those were the really good days,” said Mok Kok Meng, general manager at Sedona Hotel Yangon, who shared that average rates at the property have dipped from US$250 to US$165.

“It’s much more balanced now, with three-star and economy hotels popping up across the board and providing some breathing space for the industry. We welcomed this because they helped in the overall sense by making it easier to get a room at a more affordable and logical rate.”

New opportunities, new challenges
While it may be a bane for hoteliers, lower room rates in Yangon now tilt the situation in favour for inbound players and visitors alike.

Thomas Barrows, product manager, Myanmar, Exo Travel, said: “One of the main drawbacks to travelling in Myanmar in the past was the high cost of the hotels compared to neighbouring countries. As the supply of rooms starts to greatly increase, we are seeing hotel costs going down, making Myanmar a much more affordable destination.”

With the expansion in Yangon’s upmarket hotel inventory, Tour Mandalay managing director and owner Khin Zaw sees strong potential in pursuing the high-end FIT markets from the UK, the US, Germany and France. Changes in car import regulations have also made transfers a more comfortable and plush affair with the availability of new luxury cars.

While room crunch is no longer an issue, inbound agents stress that the bigger challenge lies in overcoming the perception that Yangon – or Myanmar as a whole – remains a pricey destination.

Highlighting the need to update and educate overseas agents on the price situation in Yangon, Edwin Briels, general manager of Khiri Travel Myanmar, commented: “When I compare how much a three- or four-star tourist spends for a trip to Myanmar with other ASEAN countries, I think that Myanmar is not that expensive…prices spent in a day in other ASEAN countries are pretty much on par.”

Compounding the pricey perception is the traditional slump in tourism during the monsoon season in Myanmar, another issue inbound players are keen to overcome too. Said Khin Zaw: “Our tourist season is only six months, unlike Thailand which sees tourists year-round. We need to tell visitors that Myanmar can be visited the whole year round, so we need to target new markets like Russia, Canada, Latin America and Australia (to spread footfalls during the low season).”

At the same time that Yangon’s room crunch is being alleviated, the city’s streets, on the other hand, are now facing congestion as the vehicular growth has vastly outstripped the road infrastructure.

Barrows commented: “The number of cars flooding into the country over the last three years has overwhelmed the infrastructure, particularly in downtown Yangon. With no real viable public transport, the gridlock downtown is becoming quite a problem. A new vision to handle this growing traffic is needed to keep downtown a popular tourist attraction.”

Briels agreed: “A traffic-free zone in the downtown area or better public transportation would be good for tourism as we see that the average number of days tourists are staying in Yangon is decreasing.”

Myanmar Welcome Travels & Tours saw booming demand – an 80 per cent growth – from Thailand in 2015, in part driven by visa-free regulation between Thailand and Myanmar introduced last August.

Said its director Nwe Nwe Khaing: “Back when we had room shortage, the Thai market used to buy three-star properties but with more reasonable prices in Yangon, they have become less budget-conscious and are increasingly turning into a high-end market,” she added.

No longer a frontier destination?
Thailand is not the only market visiting Yangon in droves. The Ministry of Tourism has predicted 4.5 million tourist arrivals in 2015, up from 3.8 million in 2014 and 2.1 million in 2013. Nearly three-quarters of the international arrivals were from Asian countries, led by Thailand, followed by China, Japan and South Korea.

With rising confidence for Myanmar following the landslide victory of Aung San Suu Kyi in last November elections, the trade expects visitor interest and business prospects for Yangon to stay rosy.

Briels remarked: “We can see that Myanmar has developed itself from a niche destination only for early innovators to a more mature destination. A few years ago, tourists visited Myanmar because it was ‘new’, nowadays tourists visit the country because it simply has a lot to offer them.”

But as Myanmar heads towards its target of 7.5 million tourists by 2020, will mass tourism develop too quickly in Myanmar along the lines of neighbouring Thailand and Vietnam?

Laurent Kuenzle, CEO of Asian Trails, contends that Yangon is still a “far way from being a modern city and a mass tourism destination” as the city retains its traditional ways and charismatic allure.