Kayah State, Myanmar

Preliminary findings

Dr. Frederic THOMAS ITC International Consultant [email protected] Map of Kayah State

Permitted area to International Tourists - Loikaw Township - Demawso Township - Pruhso Township

Not permitted area with tourism potential

- The Kho and Ho hay villages (Kayaw groups) - Shadaw area (Dark/Historic Tourism) - BP 10 (border with Mae Hong Son city

Myanmar

Other BP 13 – Open in 1 year

CONTEXT Simplified SWOT Strengths Weaknesses •Growing demand for Kayah •Over-priced and poorly services •Outstanding scenery accommodation and transportation •Cultural uniqueness (including unscheduled flights) •Local specialties •Low skilled tourism stakeholders •Local Government support •Limited number of activities and products •Low average length of stay •Waste management issues •Low or absence of destination marketing

Opportunities Threats •Growing demand for Myanmar •Political instability •Tourism as a priority •Rapid entrance into the market •Interested Tour Operators in Kayah economy and loss of social fabric •ASEAN and bilateral agreements Economic Impact of International Tourism (only) in Kayah State

International Visitors in 2013 (1490) US$ 260,000 – US$ 175 /2 nights

Guides and Hotels Restaurants Souvenirs Transportation excursions

6 restaurants serving 8 hotels 4-5 souvenir shops 7 companies of car Int. Tourists 5-10 active guides 100 rooms (+39) + 4 weaving centers rental services + 5 Kayah sausage + 100 trainees 60 employees 61 Staffs (+52) producers + 2 wood carvers

US$ 150,000 US$ 37,000 US$ 18,000 US$ 5,000 US$ 50,000 58% 14% 7% 2% 19% Overall Needs (not including financing)

Tourism management and regulation • Enhance Kayah state’s administration to accelerate time consuming procedures for tourism operators • Public-private dialogue • Clarify strategic choices and set priorities for Kayah’s tourism development Infrastructure and planning • Improve accessibility - Airport’s runway rehabilitation & Tourism roads and access roads including border opening with Thailand (BP10) / Boat to Nyang Shwe (inle lake) / Road to Tangoo • Taking sustainability considerations into account for Kayah’s urban planning (Involve Ministry of Environmental Conservation and Forestry, MoECAF) • Priority to responsible tourism projects Natural and build environment • Protect and valorise traditional architecture • Implement behaviour change programmes on waste generation and management • Design guidelines for sensitive areas Tourism products • Product Development and diversification including increased ALOS in tourism sites and overnight in more locations than Loikaw • Raise awareness and discuss on opportunities such as historic tourism (Kingdom, civil war, Italian missionaries products) Markets and marketing • Promotion and Marketing: target markets / brand image / positioning / pricing and competitiveness Human Resources Development • Capacity building of tourism professionals (services, entrepreneurship, CSR and environmental policies, sustainability and quality standards, etc.) • Capacity building of public servants (planning, sustainability, tourism management and regulations, etc.) In-depth Context Analysis

Tourism management and regulation

Human Resources Infrastructure Development and planning

Markets and Natural and build marketing environment

Tourism products Existence of restricted areas / unsolved political issues (on- going discussion for peace agreement)

Over-priced and poorly serviced accommodation and Tourism transportation (including management unscheduled flights)

and Absence of sustainable tourism development regulation strategy/plan for Kayah State.

Lack of clear understanding of the direction of change and its understanding for business and destination management (1) Tourism management and regulation OBJECTIVES

• Public – private dialogue in place • Strategic options for Kayah’s tourism development clarified • Upgraded quality of hospitality services • Enhanced skills of tourism-related entrepreneurs and community leaders (training of trainers) • Reduced current environmental impact of tourism services • Increased number of international buyers (tourists and tour operators) and their overall amount of expenditures (1) Tourism management and regulation ACTIVITIES

• Facilitated roundtable between public tourism authorities (MoHT branch office) and private tourism operators to voice problems and seek jointly solutions and render the public tourism-related sector more client oriented • Study tour for a group of public and private stakeholders incl. visits of responsible hotels and shops • Role play trainings - 12 types of trainings (export competitiveness), 1 per month to be repeated every year + MOHT to participate (people from 5 departments) • “Sustainability standards” training programme • Training on business management including staff training Limited accessibility (unreliable flights, poor runway, no access from Thailand yet, limited connection with neighbouring states)

Poor internal road conditions. Infrastructure Access from Inle Lake by boat and/or car to be enhanced. and planning

Limited planning capacity (lack of funds and technical means such as public works machinery) (2) Infrastructure and planning OBJECTIVES

• Improve accessibility - Airport’s runway rehabilitation & Tourism roads and access roads including border opening with Thailand (BP10) / Boat to Nyang Shwe (inle lake) / Road to Tangoo • Taking sustainability considerations into account for Kayah’s urban planning (Involve Ministry of Environmental Conservation and Forestry, MoECAF) • Priority to responsible tourism projects and social enterprises (2) Infrastructure and planning ACTIVITIES

• Facilitated roundtable between public tourism authorities (MoHT branch office) and private tourism operators to voice problems and seek jointly solutions and render the public tourism-related sector more client oriented • Participation of public stakeholders to all trainings and capacity building activities • Policy advice to local Government through strategic document “Vision and strategic choices for sustainable tourism development in Kayah State” • Difference between Zoning and Hotel zone • Social enterprises as a business model • Investment Outstanding scenery

Natural and Waste management issues/ lack of access to Built staple water in all tourism environment sites

Disappearance of vernacular architecture (including the erosion of social fabric and traditions) (3) Natural and built environment OBJECTIVES

• Protecting and valorizing natural and built environment • Taking sustainability considerations into account for Kayah’s urban planning (involve Ministry of Environmental Conservation and Forestry, MoECAF) • Priority to responsible tourism projects (3) Natural and built environment ACTIVITIES

• Raising awareness activities • Participation of public stakeholders to all trainings and capacity building activities • Policy advice to local Government through strategic document “Vision and strategic choices for sustainable tourism development in Kayah State” Limited number of activities / low commercial exploitation of existing potential

Limited and unsustainable Tourism commercial exploitation Products of tourism assets

Leakages to transport and guides from Inle Lake (4) Tourism products OBJECTIVES

• Product Development and diversification leading to increased ALOS in tourism sites • Create an environment encouraging flows of visitors and expenditures (direct and indirect) to the benefit of local communities • Create an environment facilitating the conservation of both, the social fabric and the cultural heritage • Rebuild the social cohesion and limit the migration of youth to Thailand (4) Tourism products ACTIVITIES

• Tanee La Leh - Support the creation of a community- owned restaurant/coffee shop with traditionally dressed waiter and waitress, and local food/products • Pan Pet Village • Create community-led activities: Integration of tourism into village daily life, not substitution • Develop cultural tourism tour beyond long-neck women, incl. commercial outlets and creative tourism activities • Technical assistance for creation of a community house • Product development Cultural community tour development in Seven Lakes/Tanee La Le, incl. development of community owned restaurant

 Existing flows of international and domestic visitors at the “Seven Lakes”  Tourists are currently using lunch boxes provided by hotels in Loikaw  Existing offer for snacks, salads and drinks on community land with poor quality of service, however with US$ 150 weekly revenue for local community  Current discomfort and inconvenience caused by international visitors stopping in the village to take pictures of traditionally dressed old women  Strong project support from community leader Cultural community tour development in Pan Pet, including Kayan Community House

 Existing flows of international and domestic visitors with an average very short stay of International visitors (15 min.)  Current unequal distribution of tourists expenditures (only 3-4 beneficiaries)  Existence of conflicts and disappearance of cultural heritage (loss of social fabric, migration to Thailand, “folklorisation” of traditions)  Sensitiveness around the promotion of “long neck women” Income generating activities at the Ethnic group Museum in Loikaw

 Existing flows of international and domestic visitors  Lost opportunities and weak commercial exploitation of potential  Bad presentation: Lack of signs and information in foreign languages, tidiness Creative and culinary tourism activities at weaving centers / sausage and rice wine experiences

 Existing demand of international and domestic visitors for visiting traditional activities  Growing worldwide demand for creative tourism  Lost opportunities and weak commercial exploitation of potential  Lack of capacities to value the local production of “longyi”, sausage, rice wine, etc. Product development of crafts and FE&E

 Unexploited potential of crafts & furniture to sell to Hotels, Restaurants as interior decoration  Missed opportunity to sell through Hotel souvenir shops  Existence of local “savoir-faire” (Music instruments, knife, etc.) & Lack of capacities to value the local production of “longyi” and others  Lack of trust in tourism potential and therefore low willingness to adapt or to produce for the sector  Existing trained manpower in refugees camps  Existence of shops in Yangon (such as POMELO) interested in supporting local products Limited flow of international tourists (2000 in 2014)

Inexistent or limited Markets and Marketing/Promotion/Sites Marketing signage

Inexistent or limited Marketing/Promotion by private sector stakeholders (5) Markets and Marketing OBJECTIVES

• Increased ALOS in tourism sites • Attract the segment of responsible tourists • Encourage and Influence sustainable tourists to adopt visitors’ code of conduct (5) Markets and Marketing ACTIVITIES

• EXPORT PROMOTION Training of 25 Myanmar Tour Operators • Development of backward and forward market linkages (liaison officer/national coordinator with stakeholders in Yangon and Kayah) • Promotion and Marketing training and activities • Creation of both visitors and stakeholders’ code of conduct Poor quality of services and limited awareness of responsible practices in tourism Human Weak sustainability Resources standards Development

Limited access to training (6) Human Resources Development OBJECTIVES

• Responsible and qualified tourism professionals (services, entrepreneurship, CSR policies, sustainability standards, etc.) • Responsible and qualified public servants (planning, sustainability, tourism management and regulations, etc.) • Quality assurance for food supply • Increased number of international buyers and their overall amount of expenditures

(6) Human Resources Development ACTIVITIES

• EXPORT PROMOTION Training of 25 Myanmar Tour Operators • Attendance of Kayah MoHT civil servants to all tourism- related trainings • Development and application of both, visitors and stakeholders’ code of conduct • Capacity-building of existing guides through involvement in product development (e.g. cultural tourism tour development) • Train and accompany food producers and restaurants in applying quality and food security standards improvement Quality assurance for food supply

 Growing worldwide and regional demand for Myanmar and Kayah as a tourism destination  Weak average quality of food and services in restaurants  Existence of local specialities (sausage, banana leave rice snack, etc.)  Lack of activities to promote local food  Low sustainability standards Capacity building of local guides

 Lack of well trained Kayah guides  Kayah state sold as an extension of Inle Lake with Inle guides, resulting in unexploited Kayah assets (story telling)  Lack of training activities and schools  Lacking offer of activities and products/services  Sustainability standards to be improved ITC’s expected long term Impacts

Tourism management and regulation

• Strategic Tourism Management • Sustainable Development of tourism in Kayah State

Infrastructure and planning

• Facilitation of new roads and improved access to Kayah States • Fair distribution of tourism expenditure

Natural and build environment

• Reduction of waste generation & Improved waste management practices • Cultural and natural heritage preservation

Tourism products

• Increased ALOS by one day – US$ 80/person/day (US$ 160,000/year) • Increased expenditures and pro-poor income (US$ 20,000 / year)

Markets and marketing

• Increased volume of responsible tourists visiting Kayah state • Increased satisfaction, number and expenditures of international visitors • Increased number of TO selling Kayah

Human Resources Development

• Improved quality of services and visitors’ satisfaction • Increased volume and variety of visitors • Skilled tourism related entrepreneurs ITC project’s direct objectives (year 1)

Increased Improve ALOS (1 day) Create new current + volume of products supply responsible tourists

Capacity building of US$ 160,000 Year one tourism stakeholders Capacity building of local communities and NGOs + 20 jobs

Upgrade 3 products (Seven lakes / Tanne lah le village, Creative tourism at weaving centers (2) / 200 tourists @ US$ 240/trip sausage and rice wine experience Pan Pet villages, cave) Souvenirs and home deco for hotels(FE&E) US$ 48,000

Raising awareness (responsible tourism) and Crafts, food and activities Market linkages market linkages US$ 20,000 + US$ 10,000 / year ITC project’s impact in Kayah (ROI)

Low based Scenario

Yield (Entire Economy)

Visitors Expenditures Year 5 Overall Impacts Year 4 •US$$564,000 - Trade promotion •US$ 485,000 - Employment generation Year 3 - Knowledge transfers •US$ 406,000 Year 2 - Spillovers •US$ 317,000

Year 1 •US$ 238,000

Direct Economic Impact in Kayah US$ 2 millions after 5 years + Improved export capacities of 25 Yangon based TO – US$ 2.5 millions after 5 years (10 intern. Clients @ $ 2,000/package) US$ 500,000 / year + Induced impacts = Environmental and Cultural preservation Poverty reduction / Responsible management

ITC – Kayah State, Myanmar Thank You

Dr. Frederic Thomas, ITC consultant – [email protected]

ITC contacts in ITC Geneva Marie-Claude Frauenrath, Project Manager - [email protected] Giulia Macola, Project Management Support - [email protected]

ITC contacts in Myanmar Pascal KHOO THWE (ITC liaison officer) - [email protected] Winnie Mai (Project Assistant Loikaw) - [email protected]