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Myanmar accelerating tourism development

After welcoming its first million of international travellers last year, Myanmar is looking for another year of rapid growth for its tourism. During the ASEAN Travel Forum in Vientiane, Myanmar authorities talked about 1.3 to 1.5 million of expected international travellers, putting the country’s deficient infrastructure under further strain.

VIENTIANE- Will Myanmar keep its cool as tourism is skyrocketing? Nothing seems to currently alter Myanmar tourism experts’ most optimistic forecasts. “We predicted for many years at many ATF press conferences. But this time we managed it: we finally received our million international traveller,” said not without a certain pride Daw Kyi Kyi Aye, a Myanmar travel veteran who used to be at the Ministry of Hotels and Tourism and who is now a tourism consultant.

Last year, Myanmar did in fact receive over a million international guests, more exactly 1.058 million international travellers. For the first time, they were also more travellers entering through airports than through border checkpoints. The four international airports of Yangon, Nay Pyi Taw, Mandalay and Nyaung U (Bagan) welcomed last year 594,000 travellers, representing 56% of all arrivals. FIT represent also the bulk of all travellers, accounting for 42% of all arrivals while business travellers represent now 20% of all travellers. It is predictable that both categories will continue to grow as entry conditions into the country are increasingly relaxing while investors rush to the country to seize the opportunity offered by an emerging economy…

Myanmar is certainly Asia tourism’s “hot potato” for now. However it is already facing increasing difficulties to accommodate the need of tourists. “We do expect 1.3 to 1.5 million international tourists in 2013 as airlines continue to add seats and frequencies to Yangon and Mandalay. However, we must also speed up investments in our facilities. What would be the purpose of having more air seats if people cannot find an accommodation?” asked Mrs Daw Kyi Kyi.

Prices in hotels rocketed last year, forcing already the government to put a cap on maximum rates charged in cities, especially in Yangon. They are currently 787 star-rated hotels in the country offering slightly over 28,000 rooms. According to Mrs Daw Kyi Kyi, there is another 4,000 rooms run by private persons such as guest houses.

The situation in Myanmar could still be tensed until 2014/2015 in terms of accommodation. While investment laws were relaxed at the end of last year, they are currently an estimated 36 projects being completed or to be soon completed, offering an additional 6,766 rooms. While international chains start to queue up in Yangon looking for investment’s opportunities, the Government already designated tourism tax free zones where investors can already build hotels with minimal legal constraints. “Our own dynamic is a real challenge to Myanmar Ministry of Hotels and Tourism as well as for our NTO. But we remain optimistic on our capacity to manage the increasing flows of travellers”, told a confident Daw Kyi Kyi.

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Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.

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