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Myanmar Hotel & Tourism Review 2012

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Myanmar Hotel & Tourism Review 2012 MMRD BUSINESS INSIGHT MYANMAR HOTEL & TOURISM REVIEW 2012 ● ● ● T J Tan [Pick the date] Page | 2 Contents Country Facts ● ● ● .......................................................................................................................... 5 Executive Summary ● ● ● ................................................................................................................ 6 Overview ● ● ● ................................................................................................................................ 7 Infrastructure ............................................................................................................................... 7 There has been much progress in infrastructure development particularly in the past 2 years. This would include: ....................................................................................................................... 7 Banking, Payment & Foreign Exchange ........................................................................................ 8 Investments .................................................................................................................................. 8 Tax .............................................................................................................................................. 11 Communications ......................................................................................................................... 11 Tourism Sector ● ● ● ..................................................................................................................... 13 Seasonality of the Tourism Sector .............................................................................................. 15 Touring the Golden Land: main tourist destinations & attractions ........................................... 16 Yangon .................................................................................................................................... 17 In and around Mandalay ........................................................................................................ 17 Bagan ...................................................................................................................................... 18 Inle Lake & its environs ........................................................................................................... 18 Beach Resorts ......................................................................................................................... 19 Immigration & Visas ............................................................................................................... 21 Visitor Arrivals ............................................................................................................................ 23 Getting There & Getting Around ................................................................................................ 29 POINTS OF ENTRY ................................................................................................................... 29 Getting There .......................................................................................................................... 32 Getting Around ....................................................................................................................... 37 Tour and Travel Agents............................................................................................................... 40 Earnings from Tourism & Tourists' Expenditure........................................................................ 42 Opportunities in Supporting Industries ...................................................................................... 45 Handicraft & Souvenirs ........................................................................................................... 45 Food & Beverage .................................................................................................................... 45 Supplies................................................................................................................................... 45 Logistics .................................................................................................................................. 45 Hotel Sector ● ● ● .................................................................................................................. 46 Page | 3 Policies related to the Hotel Industry .................................................................................... 50 Licenses & Land Lease ............................................................................................................ 50 Government Incentives .......................................................................................................... 51 An analysis of strengths and weaknesses ● ● ● ............................................................................ 52 Conclusion ● ● ● ............................................................................................................................ 54 Resources & Credits ....................................................................................................................... 55 was established in April 2007 when MMRD's (Myanmar Marketing & Research Development) Business Magazine was merged with its Indsutrial Research Deparment, resulting in a department that specialises in Business and Industrial Research (BI). Since then, MMRD Copyright© MMRD BUSINESS INSIGHT Business Insight has conducted over 60 BI projects using both qualitative & quantitative aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa methods for its local as well as international aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa clients which include mulitnationals, corporations as well as NGOs, foreign missions and agencies. DISCLAIMER: The designations employed and presentation of the material in this document do no imply the expression of any opinion whatsoever on the part of MMRD Business Insight concerning the legal stats of any country, territory, city or area of its authorities concerning the delimitation of of its frontiers or boundaries or economic system or degree of development. Designations such as "developing" or "developed" are for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial production does not constitute any endorsement of MMRD Business Insight. Page | 4 Country Facts ● ● ● Country : The Republic of the Union of Myanmar Capital : Nay Pyi Taw Population : 60 million (official figure) People : 8 national races & 135 ethnic groups Religion : Buddhism (89.3 %), Christianity (5.6 %), Islam (3.8 %), Hinduism (0.5 %), Animism (0.2%) GDP1 : USD 43 billion (2010 Asia Development Outlook -ADB) Per capita income2 : Climate/ Weather : The climate of Myanmar can be divided into three seasons: hot season, rainy season and cold season. Hot season is from March to mid-May; the rain falls from mid-May to the end of October; and the cold season starts in November and ends at the end of February. Temperature varies from 38°C to 19°C; humidity from 82.8% to 66%. The cool season runs from late October to mid-February. Temperatures are lowest at this time, though the climate remains tropical throughout most of Myanmar. The hot season lasts from late February to about mid-May. During this season, temperatures often top 100 °F (38 °C) in many parts of Myanmar. 1 Source: Myanmar Tourism Association 2 Source: Page | 5 Executive Summary ● ● ● The largest country in mainland Southeast Asia with a population over 50 million, Myanmar is blessed with a diversity of terrain that ranges from ice-capped mountains in the north, to pagoda-filled plains in the center, to miles of pristine beaches along the southern coast. However, it only receives 816,369 tourists3 in 2011 – a mere single digit percentage of Malaysia’s 24.7 million and Thailand’s 19.1 million. Because of its closed doors, mysterious and sometimes notorious image for the past 50 odd years, the rest of the world was unable to experience what Myanmar - “The Golden Land” - could offer. Myanmar missed out on many of the world’s developments and remained stuck in time behind its wall of self-isolation but it is this very isolation that has given Myanmar a chance to retain its unique culture and relatively untouched soil in this globalized world. For many years, Myanmar’s old world charm, has in itself , become the attraction for foreign tourists. The waves of reform that took over the country since 2011 created renewed attention for Myanmar as a tourist destination. With the influx of visitors that accompanied these changes, the travel and tourism industry is facing an urgent need to expand quickly to accommodate the continuous stream of visitors. As Myanmar prepares to host the upcoming 2013 SEA Games and the ASEAN 2014 chairmanship, even more foreigners are expected to enter the country. Many investors and industry followers have been quick to respond to this need. The Myanmar tourism industry is highly sensitive and reactive to the political and economic situation in-country. While the tourism and hospitality industry in Myanmar is highly promising, Myanmar only recently started on the path of real development. The industry thus faces considerable limitations, not least of which is infrastructure. Further encouragement or incentives from the government will spur the tourism industry
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