" Foreign investors showing greater interest in hotel and tourism sector "

= Zar Nyi Thitsar =

As the country opens up, foreign investors in grasping this opportunity expressed their interest in Myanmar tourism business and a variety of enterprises have already entered Myanmar. They are bringing together with them capital for hotel and tourism sector. The fruit of steering the course onto democracy, the international business have been eyeing Myanmar as untapped last remaining market in the South East Asia.

Myanmar now has 859 Hotels with 31321 rooms operating under the permission of the Directorate of Hotels and Tourism. 217 hotels holding 9451 rooms in Yangon, 90 hotels owning 3886 rooms in Mandalay, 40 hotels with 2640 rooms in Nay Pyi Taw, 76 hotels containing 2351 rooms in Bagan, Nyaung Oo and 66 hotels having 1837-rooms have been opened and license for hotel is given regionally, according to offi cial data of Hotels and Tourism Ministry. Among them, over twenty are 4 or 5-star hotels.

There are over 1,000 hotels including inns, motels and guest houses owned by local businessmen, most of which are located in Yangon, the commercial hub of Myanmar. 

There are a total of 39 foreign-invested hotels and commercial complexes across the country including Yangon and Mandalay Region.

Some of experts said more favorable rules and regulations are needed to encourage more international investors to Myanmar. International hotel chains’ interest in Myanmar is a positive sign for the development of tourism sector. Their interest in Myanmar upgrades the image of our country’s tourism business too. But more importantly, the government should encourage these international investors by offering favorable tax regulations, investment law and policies.

However, there are still issues to overcome in order to turn interest into actual investment.

Foreign companies have already invested over $1.4 billion in Myanmar hotels and tourism business. In addition to Japan, Malaysia, Singapore, Hong Kong from the east UK, US and other countries from other parts of the world are also preparing to enter Myanmar hotel and tourism sector with a high speed.

Experts also highlighted that other issues will affect how FDI will come in, including adequate infrastructure and guarantees for maintaining development. Facilities like international roaming and a fast and reliable internet connection are necessary for the economic development of the country.

In a bid to boost tourist arrivals in the country, Myanmar has introduced online e-visa for tourists from 67 economies including ASEAN's since Sept 1, 2014. The system ensures all the global tourists destined to Myanmar to get e-visa within fi ve days. Moreover, Myanmar has also reached visa exemption agreements with Brunei, Indonesia, Laos, Cambodia, the Philippines and Vietnam, and negotiations are underway with Malaysia and Singapore on similar agreements.

The number of tourists has increased from 1.05 million in 2012 to 2.04 million in 2013 in Myanmar, which is among the world tourist destinations. It received 3.05 million tourists in 2014, which is an increase of 49.5 percent from 2.04 million in 2013. Myanmar hopes to attract five million tourists in 2015.

Of the 3.05 million tourists who visited Myanmar in 2014, 70 percent came from ASEAN member countries, followed by those from Europe especially Britain and Germany.

Amid the surge in tourist arrivals, the number of tourism companies also increased, reaching 1,623 in 2014. Myanmar's tourism earnings hit 1.14 billion U.S. dollars in 2014. The tourism industry accounted for 4.2 percent of the gross domestic product (GDP) of the country. It generated about 6.5 percent of the total job opportunities. 

Myanmar also targets to welcome over 7.5 million tourists in 2020.

Foreign investment in the hotels and tourist sector reached 2. 15 billion U.S. dollars, accounting for 4.26 percent of the total and is standing at the sixth place in Myanmar's foreign investment line-up as of November 2014.

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