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YANGON UNIVERSITY OF ECONOMICS MASTER OF DEVELOPMENT STUDIES PROGRAMME

DEVELOPMENT OF TOURISM INDUSTRY IN REGION (2008 - 2017)

ZAR CHI TIN MDevS - 23 (14th BATCH)

MAY, 2019

Sample output to test PDF Combine only YANGON UNIVERSITY OF ECONOMICS MASTER OF DEVELOPMENT STUDIES PROGRAMME

DEVELOPMENT OF TOURISM INDUSTRY IN (2008 - 2017)

A thesis submitted as a partial fulfilment towards the requirements for the degree of Master of Development Studies (MDevS)

Supervised by: Submitted by:

Daw Kay Thwe Khine Zar Chi Tin Lecturer Roll No. 23 Department of Economics MDevS (14th Batch) Yangon University of Economics (2017 - 2019)

MAY, 2019

Sample output to test PDF Combine only YANGON UNIVERSITY OF ECONOMICS MASTER OF DEVELOPMENT STUDIES PROGRAMME

This is to certify that this thesis entitled “Development of Tourism Industry in Mandalay Region (2008-2017)” submitted as a partial fulfillment in the requirements for the degree of Master of Development Studies has been accepted by Board of Examiners.

BOARD OF EXAMINERS

1. Dr. Tin Win Rector Yangon University of Economics (Chief Examiner)

2. Dr. Ni Lar Myint Htoo Pro-Rector Yangon University of Economics (Examiner)

3. Dr. Cho Cho Thein Professor and Head Department of Economics Yangon University of Economics (Examiner)

4. Dr. Khin Thida Nyein Professor Department of Economics Yangon University of Economics (Examiner)

5. Daw Yin Myo Oo Associate Professor Department of Economics Yangon University of Economics (Examiner) MAY, 2019

Sample output to test PDF Combine only ABSTRACT

This study aims to focus the tourism development of tourism industry in Mandalay region. The objective of this research is to identify the tourism sector and examine the tourism industry development of Mandalay Region in 2008-2017. To meet the research objectives descriptive method is used based on secondary data. Time series data are collected from the official websites, Ministry of Hotels and Tourism Mandalay and Mandalay Hotelier Association. The scope of the development is to analyse the development of tourist arrivals and the development of hotels, motels and inns in Mandalay from 2008 to 2017. The results of trend analysis indicate that the growth of tourist arrivals was greater than the growth rate of hotels, motels and inns in Mandalay during the period from 2011-2012 to 2016- 2017.

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Sample output to test PDF Combine only ACKNOWLEDGEMENTS

First of all, I would like to express my heartfelt thanks to the Professor Dr. Tin Win, Rector of the Yangon University of Economics, for his permission for my selection of the research topic as a partial fulfilment towards the Degree of Master of Development Studies. I also deeply thank Professor Dr. Cho Cho Thein, Professor and Head of Department, Department of Economics and the Programme Director of Master of Development Studies Programme, Yangon University of Economics for her initiatives, monitoring and close guidance to accomplish this research. Secondly, allow me to take this opportunity to render my heartfelt thanks to my supervisor, Daw Kay Thwe Khine, lecturer, for her precious time spending in her close supervision on this research paper and her kind guidance and advice given to me to be able to complete a quality and successful thesis paper. Moreover, I thank all my teachers, current and retired professors, lecturers, assistant lecturers and tutors who spend their precious time for their lecturers to us and conveyed their academic knowledge, shared their invaluable experiences and mentored the students with great patience. Finally, I offer my deep gratitude and grateful thanks to all classmates for their kind help, understanding and sharing their knowledge and moral support.

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Page ABSTRACT i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii LIST OF TABLES v LIST OF FIGURES vi LIST OF ABBREVIATIONS vii

CHAPTER I INTRODUCTION 1.1 Rationale of the Study 1 1.2 Objectives of the Study 2 1.3 Method of Study 2 1.4 Scope and Limitation of the Study 2 1.5 Organization of the Study 3

CHAPTER II LITERATURE REVIEW 2.1 Tourism Development of Global and Regional Trend 4 2.2 Global Trend 4 2.3 Effects of Tourism in Economic Development 7 2.4 Supportive Factors for Tourism Development 10 2.5 Tourism and Transport 11 2.6 Development Strategies of Tourism 13 2.7 Tourism Concerned Environment and Sustainable 14 Development

CHAPPTER III TOURISM INFRASTRUCTURE IN MANDALAY 3.1 Historical Background of Tourism 16 3.2 Tourism Policy and Institutional Development 19 3.3 Private Sector Participation 21 3.4 Tourist Arrival in Entry Points 23

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Sample output to test PDF Combine only 3.5 Infrastructure Development 24 3.6 Tourism Contribution to GDP in Myanmar 29 3.7 Tourism Expenditures and Length of Stay in Myanmar 31

CHAPTER IV TOURISM INDUSTRY DEVELOPMENT IN MANDALAY 4.1 International Tourist Arrival 34 4.2 Hotels, Motels and Inns in Mandalay 36 4.3 Rooms of Hotels, Motels and Inns in Mandalay 38 4.4 Trend of Tourist Arrivals and No. of Beds in Mandalay 40 4.5 Total Numbers of Beds in Hotels, Motels and Inns by 41 Ownership 4.6 Inbound and Outbound Tourists in Mandalay 42 4.7 The Trend of Income from Tourism Mandalay 42 4.8 The Trend of Mandalay Tourism Income Development 46

CHAPTER V CONCLUSION 5.1 Findings 48 5.2 Suggestion 49

REFERENCES APPENDICES

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Sample output to test PDF Combine only LIST OF TABLES

Table No. Title Page 4.1 Tourist Arrival in Mandalay (2006 – 2017) 35 4.2 Hotels, Motels and Inns in Mandalay (2006 – 2017) 37 4.3 Rooms in Hotels, Motels, and Inns, Mandalay (2006 – 2017) 39 4.4 No. of Beds in Hotels, Motels and Inns, Mandalay (2006 – 2017) 41 4.5 Mandalay Inbound and Outbound Tourists in Numbers 43 4.6 Tourism Income in Mandalay (in US$) 44

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Sample output to test PDF Combine only LIST OF FIGURES

Figure No. Title Page 3.1 Organization of the Ministry of Hotels and Tourism 20 3.2 Trend of Growth Rate of Private Participation in Tourism 22 3.3 Trend of the Number of Hotels, Motels and Inns 23 3.4 Number of Tourist Arrivals in Each Entry Point 24 3.5 Trend of Tourism Contribution to GDP (in MMK) 31 3.6 Tourist Arrivals by Gender 31 3.7 Tourist Arrivals by Age Group 32 3.8 Trend of Tourism Expenditures 33 4.1 The Trend Tourist Arrivals in Mandalay 35 4.2 Ownership of Hotel, Motel and Inns in Mandalay 37 4.3 Trends of Tourist Arrivals and Room Development in Mandalay 39 4.4 Trends of Tourist Arrivals and No. of Beds in Mandalay 40 4.5 Income from Tourism in Mandalay (Kyats) 42 4.6 Trends of Monthly Income in US$, Mandalay (2015 – 2016) 45 4.7 Trends of Monthly Income in USD, Mandalay (2016 – 2017) 45 4.8 Trends of Monthly Income in USD, Mandalay (2017 – 2018) 46 4.9 The Trend of Tourism Income in US$, Mandalay 46

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Sample output to test PDF Combine only LIST OF ABBREVIATIONS

BAC Burma Airways Corporation BEDC Burma Economic Development Corporation BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation CIT Community Involvement in Tourism DHT Directorate of Hotels and Tourism DMCs Destination Management Companies DMPs Destination Management Plans DPTOA Domestic Pilgrimage & Tour Operators Association ECDR E-Commerce and Development Report FDI Foreign Direct Investment FE Foreign exchange FITs Foreign Independent Travelers GDP Gross Domestic Product GMS Greater Mekong Sub region HRD Human Resource Development MHA Myanmar Hoteliers Association MHPA Myanmar Hospitality Professionals Association MMC Myanmar Marketing Committee MOHT Ministry of Hotels and Tourism Myanmar MRA Myanmar Restaurants Association MSEA Myanmar Souvenir Entrepreneurs Association MTF Myanmar Tourism Federation MTGA Myanmar Tourist Guides Association MTHCGSA Myanmar Tourist Health Care and General Services Association MTHRDA Myanmar Tourism Human Resources Development Association MTM Myanmar Tourism Marketing MTPB Myanmar Tourism Promotion Board MTT Myanmar Travels and Tours MTTA Myanmar Tourism Transportation Association

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Sample output to test PDF Combine only OLMCs Official Language Minority Communities SHATEC Singapore Hotels and Training Education Centre SLORC State Law and Order Restoration Council SPDC State Peace and Development Council STB Singapore Tourism Board TIS Tourist Information Service TLGH Tourism Led Growth Hypothesis UMTA Union of Myanmar Travel Association UNWTO United Nations World Tourism Organization VOA Visa on Arrival WTTC World Travel and Tourism Council

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CHAPTER I INTRODUCTION

1.1 Rationale of the Study Tourism industry has become an important sector that has an impact on development of a country economy. Many countries depend on tourism industry for their economic development because tourism industry has many benefits which are creating income and generating jobs. Moreover, tourism industry is also the most important source of welfare of the country’s society. The ability of the national economy to gain benefits from tourism that depends on the availability of investment to develop the necessary infrastructure and on its ability to supply the needs of tourists. Tourism is a vast industry which provides a number of ancillary services linked to the other industries. Tourism industry is very highly competitive industry because all tourism industries provide range of products and services aimed at serving tourism and the needs of travellers or visitors. This group also indicates towards and brings the value chain of tourism industry. Besides, customer satisfaction is very necessary to achieve tourism success. All tourists are customers for tourism industry and they want to travel a country which provides good services such as very popular destinations, accommodations for visitors, delicious food and beverage, many types of transportation, professional travel tour guides, handicraft production and culture activities etc. The tourists spend on consumption of these products and services that become the revenues of tourism industry and support development of country economy. Development of tourism is one of the main sources of the development of a country. However, the tourism industry has some disadvantages that it can impact on environmental damage through forest fires, destruction of sand dunes and pollution. Consequently, this serves negatively as increased pollution, disturbs local residents and also it may discourage tourists from further entering in the country. After this,

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Sample output to test PDF Combine only tourism undermines culture by commercializing it and this is often connected with increasing litter, graffiti, vandalism and noise because some tourists do not respect traditional culture of the local society.

1.2 Objectives of the Study This study aims to focus the tourism industry development in Mandalay division. The objective of this thesis study is to identify the tourism sector in Mandalay, and examine the tourism industry development in Mandalay.

1.3 Method of Study The method of study is a descriptive method. The secondary data are used. The information, facts and figures of the secondary data are obtained from the Ministry of Hotels and Tourism and the head office of Hotels and Tourism in Mandalay. The organizations such as the Mandalay Hoteliers Association which provides income and expenditures of the tourism in Mandalay, tourist arrivals from statistical Year book, tourism related information from different sources of websites. All data are collected as census data of hotels and tourist arrivals in Mandalay division.

1.4 Scope and Limitations of the Study This study mainly focuses on the tourism industry development in Mandalay from 2006 to 2017. This thesis covers the twelve main cities and towns in Mandalay Division which are Mandalay, , Kyaungpadaung, Pyinoolwin, , Thazi, Yamethin, , , , Pyawbwe, and . Tourism industry highly relates to many other industries. However, in this study only focuses on the hotels and tourist arrivals and income earned by the hotels in the sector of tourism industry in Mandalay.

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Sample output to test PDF Combine only 1.5 Organization of the Study This paper is divided into five chapters. The Chapter (1) is the introduction which includes rational of the study, objectives of the study, method of the study, scope and limitation of the study and organisation of the study. Chapter (2) is literature review on tourism development of global and regional trend, the effects of tourism in economic development, supportive factors for tourism development, tourism and transport, development strategies of tourism, tourism concerned environment and sustainable development. Chapter (3) presents the tourism infrastructure in Mandalay which comprises the background of Myanmar tourism, tourism policy and institutional development, private sector participation, tourist arrival in entry points, infrastructure development, tourism contribution to GDP in Myanmar and tourist expenditures and length of stay in Myanmar. Chapter (4) is tourism industry development in Mandalay which includes the international tourist arrivals in Mandalay; hotels, motels and inns in Mandalay; rooms of the hotels, motels and inns in Mandalay; trend tourist arrivals and beds in Mandalay; total numbers of beds in hotels, motels and inns by ownership structure in Mandalay; the trend of income from tourism and its development in Mandalay. Chapter (5) is a conclusion which includes findings, suggestions and further research.

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CHAPTER II LITERATURE REVIEW

2.1 Tourism Development of Global and Regional Trend Nowadays, Tourism is one of the important industries and fastest growing in the world economy. Tourism can be considered as a main instrument for regional development in many countries. Tourism is recognized as one of the fastest growing industries in the world. In 2003, tourism accounted for about 11 per cent of the world’s gross domestic product (GDP) and the foreign tourism earnings amounted to US$523 billion with US$691 million international tourism arrivals. This industry supports over 200 million jobs, representing about 9 per cent of the global workforce (World Travel and Tourism Council 2005). Hence, international tourism be a crucial means for income redistribution among countries and thus contribute towards balanced development of the world economy.

2.2 Global Trend The World Travel and Tourism (WTT) produces reports and forecasts the economic and employment impact of Travel & Tourism for 185 countries and 25 geographic or economic regions in the world. 10-year forecasts also provide a unique understanding of Travel & Tourism’s future growth, economic importance and social influence. Travel & Tourism is a key sector for economic development and job creation throughout the world. In 2018, the sector’s total contribution to the global economy reached US$8.8 trillion (equating to 10.4 percent of global GDP). Meanwhile, spending by international visitors represented only 28.8 percent of all tourism spending in 2018 with the remaining 71.2 percent of spending coming from domestic visitors. While countries tend to focus on international tourism given inbound revenue through exports, domestic tourism is an important tool for regional economic growth and development.

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Sample output to test PDF Combine only The continued rise in the number of middle-class households, solid growth in global consumer spending, low unemployment rates, continued rebound from security threats, currency depreciation and visa relaxation in several countries around the world enabled Travel & Tourism’s growth to reach 3.9 percent in 2018, a rate higher than that of the global economy for the eighth consecutive year. At a country level, Travel & Tourism outpaced wider economy growth in 102 out of 185 countries, including overall economy growth in 13 of the G20 countries (Appendix -1) Travel & Tourism GDP growth in 2018 was particularly driven by spending from international visitors, which grew by 4.2 percent, and spending on leisure (+4.1 percent). This led the share of international spending to increase from 27.3 percent of the total spend in 2017 to 28.8 percent in 2018 and the share of leisure spend to rise from 77.5 percent to 78.5 percent in 2017. In terms of the countries’ share of contribution to global Travel & Tourism growth in last year, two countries dominate; one quarter 25 percent came from China while the USA provided a further 12 percent. Other major contributors include India with a 6 percent share, while Turkey, France and Japan each contributed 4 percent to the sector’s growth in 2018 (Appendix -2). International tourists worldwide beat all expectations last year, exceeding the predicted 800 million and achieving an all-time record. The international tourism industry has higher multiplier and positive spill over effects than most other economic sectors. According to estimates of the World Tourism Organization and by the World Travel and Tourism Council, for each job created in the tourism industry, some five to nine affiliated jobs are generated in other areas. The expansion of tourism has made an important contribution to the development of several developing countries, which have selected the tourism as a priority sector. Tourism services can stimulate development in terms of income, employment, foreign exchange earnings, taxation, and multiplier and spill over effects. International tourism and tourist attractions all over the world are mutually interrelated. In addition, endowed with natural tourism sites, developing countries have a chance to attract international tourists like developed countries. In some developing countries, tourism is a major source of foreign exchange earnings. In addition, as tourism is a multi-sector dimension, other tourism-related businesses such

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Sample output to test PDF Combine only as transportation, restaurants, recreation programs, souvenir shops, and hotels develop at the same time. Nowadays, Tourism is one of the largest industries and fastest growing in economic sectors. Tourism is seen as a main instrument for regional development in many countries. Tourism industry affects economic growth in different ways. Firstly, tourism is one of the main sources of foreign exchange earnings for many countries (McKinnon, 1964). Tourism expenditures generate income for the host economy and can stimulate the investment necessary to finance growth in other economic sectors. Some countries seek to accelerate this growth by requiring tourists to bring in a certain amount of foreign currency for each day of their stay. Tourism is a long run economic growth shows that tourism has a long-run economic growth effect (Dritsakis, 2004). Secondly, tourism has the ability to generate employment. Tourism can generate jobs directly through hotels, restaurants, nightclubs, taxis, and souvenir sales, and indirectly through the supply of goods and services needed by tourism related businesses (Lee and Chang, 2008). Thirdly, tourism income contributes to government revenues in two ways. Direct contributions are generated by taxes on incomes from tourism employment and tourism businesses, and by direct levies on tourists such as departure taxes. Indirect contributions come from commercial taxes charged from the tourists’ expenses. Tourism can create lots of different types of jobs and employment availabilities. Most of these are tertiary jobs which involve providing service that includes retail, tourism, education, health and banking, teaching and nursing. This is because they involve providing services to other people. Tourism can provide employments and can improve the wealth of a country. Many developing countries are keen to develop tourism in order to become richer and to improve the quality of life for their people (Battaglia et al.2012). The environment is obviously important to tourism. Both the natural environment such as beaches, forests, waterways and the built environment such as historic buildings and ruins must be preserved for an area to be environmentally sustainable (Zhenhua, 2003) It’s much more than just being “green.” International tourism has been regarded as one of the most importance sectors providing an opportunity for economic growth. International tourism industry has

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Sample output to test PDF Combine only become a major economic sector that generates foreign exchange earnings in most countries and an export for many low-income countries as well as for developed countries. Tourism-Led – Growth hypothesis is one of the most important issues in the economic effects of tourism. Tourism Led Growth hypothesis is based on the Export-Led-Growth hypothesis (Cortes et al., 2009). The tourism-led economic growth hypothesis (TLGH) postulates that tourism expansion leads to economic growth. Besides, the government plays importance role to create and set the economic policies to promote international tourism as a potential strategic factor to development and economic growth. Tourism is an important economic sector in countries around the world and governments are developing active and innovative policies to build a competitive, inclusive and sustainable tourism development. Many countries consider an integrated whole of government approach to tourism as an essential component of a supportive government framework. These integrated strategies increase the policy coherence and the effectiveness of public and public/private actions in tourism. Governments at all levels have an important role to play in the delivery of the tourism product, and they need to work in close partnership with the private sector (OECD, 2015).

2.3 Effects of Tourism in Economic Development Tourism is one of the world's largest industries. “It surpasses that of oil exports, food products or automobiles,” according to the United Nations World Tourism Organization. Inbound tourism boosts the economic development region's economy while providing high potential to support job creation. Outbound tourism promotes cross-cultural understanding and goodwill. Tourism is a major industry globally and a major sector in many economies. According to the United Nations World Tourism Organization (UNWTO), over the past six decades, tourism has experienced continued growth and diversification to become one of the largest and fastest growing economic sectors in the world. The World Travel and Tourism Council (WTTC) estimate that tourism contributed 9.2 per cent of global GDP and forecasts that this will continue to grow at over 4 percent per annum during the next ten years to account for some 9.4 percent of Gross Domestic Product (GDP) (WTTC 2010). Over time, an increasing number of destinations have opened up and invested

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Sample output to test PDF Combine only in tourism development, turning modern tourism into a key driver for socioeconomic progress. Tourism is a vast industry which provides a number of ancillary services. It helps generate a considerable amount of revenue for each country whether the person is travelling within a country or outside a country. Tourism has become an important sector that has an impact on development of country economy. The main benefits of tourism are income creation and generation of jobs. For many regions and countries, it is the most important source of welfare. Tourism is a growing industry not only in developed countries, but also in developing as well as in underdeveloped countries (Tasci & Gartner, 2007). For many developing countries, tourism is already a major part of their economy and a significant source of income and employment. Various research studies on the relationship between economic and social benefits from tourism in both developing and developed countries. There are a number of social benefits of tourism for growth and development. They include employment creation as tourism is labour intensive industry. The development ethical tourism has been a key recent feature of volunteerism and able to employ higher percentage of women. Since tourism is a service industry which generates important foreign exchange earnings. The development tourism is an important source of diversification for many smaller countries. The development of tourism can boot to aggregate demand, creating local and regional income multiplier effects. It can spill over benefits for supplier of local foods and drinks so that it can provide better informed tourists. Accelerator effects from increased capital investment in tourism infrastructure and services such as airlines and telecommunications. Tourism investments can bring benefit for local and regional people. Tourism is one of the only industries in the world where the ‘good’ or ‘service’ is consumed at the site of production. For this reason, local people are both at an advantage to reap the benefits associated with the sector, but also at risk from exclusion or even the negative impacts it can bring. A well planned, regulated and responsible tourism can be an excellent mechanism of channelling resources from rich to poor - even at the large scale. Commercial tourism activities provide an opportunity for local people to participate in direct employment, in providing goods and services to tourism businesses through the supply chain, but also in direct interaction with the tourist (for example: crafts, excursions, food and beverage). The generation of earnings amongst

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Sample output to test PDF Combine only those local people directly involved with the industry in turn stimulates indirect spend in the local economy. There are 10 principle reasons for developing tourism assets and placing a country on a path to sustained economic development in its tourism sector. These are: (i) super economic development, (ii) create good jobs, (iii) accelerate policy and economic reforms, (iv) build remote and developing regions, (v) improve infrastructure, (vi) increase domestic consumption and diversify exports, (vii) empower women and young people, (viii)preserve cultural heritage and conserve the environment, (ix) promote public and private partnerships, and (x) Improve the national image. The tourism and hospitality industry is very broad, there are plenty of opportunities for benefits from economic impact of tourism. In fact, one in eleven jobs in the current world economy are related to tourism and hospitality. Tourism and hospitality includes attractions management, convention planning, customer service, event planning, food service, gaming, lodging, marketing, sales and travel. Working in tourism and hospitality management could land you a job almost anywhere in the world. Hotels, airlines, restaurants, transportation companies, tourist services, convention centres, casinos, sports teams, travel agencies and activity providers are all part of a dynamic industry that continually needs skilled employees. There are both direct and indirect impacts of economic and it have flowed to enterprises in local or regions wide. The direct economic impact of overall community development may not be significant but individual enterprises perspective can be seen to have significant overall benefits. There are a number of benefits from tourism such as enhancing employments and economic development that is related to the potential benefits of tourism. The another benefits are the increased income from tourism expenditures together increased induced income from tourism expenditures. There are new employment opportunities and increase employment opportunities in the tourism related sectors. It can provide the increasing tax income for government; improved infrastructure and better environment can be created. Incoming tourists will have more chances regarding revival of local traditions and the associated income. Local people might have more potential talent in communication and handicraft businesses and souvenir products will be more marketable. Increased community visibility leading to other

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Sample output to test PDF Combine only economic development opportunities. Increased resources for the protection and conservation of natural and cultural heritage persuade more tourists. There are also a number of potential disadvantages which are tourism employment is seasonal in nature, employment in this field is often low paying. Tourism development can induce inflation in economy. If the country does not proper planned and managed tourism, it can lead to increased costs (e.g. Land, Housing, Food, Services). There might be more crimes, increased traffic congestion and pollution. If there is no authentic development in cultural heritages which can reduce the attractiveness of an area as a tourism destination.

2.4 Supportive Factors for Tourism Development The travel and tourism industry are an important growth industry including provide sustainable foreign exchange (FE) receipts and employment opportunities. Travel and tourism industry has now become the largest civilian industry in the world, according to statistics one out of every ten people worldwide is part of the Travel and tourism industry by WTTC (2018). It can contribute a major part of national income from the travellers’ spending, actions and consumption. In developed neighbouring countries, tourism ranks among the largest service sectors and has a major role in improving trade and business links. The issue of human capital is crucially important to the long-term development of the tourism sector in general and Official Language Minority Communities(OLMCs) in particular. Tourism provides employment to individuals of all ages and skill levels. And, it depends on quality, available human resources to develop and deliver a competitive tourism product that meets consumers’ changing needs. However, given the highly seasonal nature of tourism employment, its reliance on student workers and irregular hours, the industry has to contend with many human resource challenges. Travel and tourism is a human resource intensive industry and the availability of skilled and trained manpower is a crucial element in the success of any tourism development plan or programme. For medium-sized and large tourism enterprise, human resource issues and the factors affecting their performance are usually highly linked to the staff and workforce and therefore recognizing the role of on-going development of the staff resource to achieve strategic goals become essential.

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Sample output to test PDF Combine only A re-investment in the human resource through on-going training and development of the employee skills and ability to create and add value to the organization are inherent qualities for which successful tourism enterprises are recognized throughout the world Training of the tourism professionals is extremely important (Ashraf & Mathur, 2003). Employees have the need not only for updating their technical skill but also for developing further a range of more generic skills, including planning problem solving, communication, IT and management skills. Therefore, it is necessary to place continued emphasis on tourism education and training, not only to sustain business level competitive advantage, but also upgrading of skills to address the demand for improved levels of quality, service and professionalism in the tourism and travel industry. Multi-skilling, newly emerging countries in tourism like special interest tourism such as eco-tourism, rural tourism, indigenous tourism, cultural heritage tourism, religious tourism, medical tourism, adventure tourism, recreational tourism and business tourism are increasing the demand for flexibility in existing skill-sets of manpower (Ashraf & Mathur, 2003).

2.5 Tourism and Transport Tourism development could be even bigger if more could be done in various elements of transportation systems. It is an important for all its stakeholders to take part to develop tourism in their regions. As the matter of fact, it is difficult to think of tourism sector without transportation. Transportation became inseparable part of tourism (Culpan, 1987, p 546). The transportation modes and management as the “important ingredients of the international tourism system,” acknowledging that linkage by air, sea and land modes is essential for the operations as well as the availability of support services such as fuel stations, auto repair, motels and rest facilities for land travel; advances in transportation have widely eased travel. The development of transportation, transportation vehicles, infrastructure and using new technologies in this sector speed up the development of tourism. Whether transportation plays important role in enriching the travel experience of a tourist depends on the mode of transportation and the frequency of use. Transportation can turn into a separate tourist attraction element; cruising, trains, boat trips along the river and etc. are the best examples to tourist attractions.

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Sample output to test PDF Combine only Transportation has been an integral part of the tourism industry; transportation links tourists with various tourist attractions. There is a general agreement that tourism expands more when there are better transportation systems. One of the things mentioned as the reason for under performance is poor transportation systems (Kimaro, 2012). Transportation needs for tourism promotion and tourism development to maintain the existing roads, construction of more roads/rail track/sea and air transportation, and construction of local airports and enhancement of local flight operations. In short distances automobile transportation comes forward in regard to other modes of transportation. The automobile transportation makes it easy to see local culture and nations. It presents great flexibility in contrast to other modes of transportation. The importance of this mode in tourism is also very important. When compared with the prices in air transportation, this mode of transportation is frequently used by tourists because of low prices. But the main factor affecting this choice is time and distance. Railway Transportation: The other mode that affects tourism is railway transportation. This type of transportation is considered the oldest one. In 19th century the railways were frequently used. Currently in many countries the railways are used for transportation of loads. The reason for this is tourist choice of air or automobile transportation. But there exist such railroads that have been included to touristic packages. For the example, we can give railways. But nowadays application of technology and technological innovation gave birth to fast trains which compete with air and automobile transportation modes (Kimaro, 2012). Air Transportation: Air Transportation is one of the most important transportation modes in tourism is air travel. Air travel has made significant changes in people’s minds concerning time and distance. In order to meet the demand which increases every day, the airline companies spend billions of dollars and apply new technological innovations. Sea Transportation: Here we may include cruise travel, boat travel, yachting, ferry travel and etc. All the stated issues prove the importance of transportation in tourism. As mentioned above the tourist’s travel experience starts and ends with transportation. In this sense, if the countries want to gain sustainable development of tourism sector,

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Sample output to test PDF Combine only they must pay attention to transportation sector, reduce monopoly in this sector; provide sound competition opportunities for the companies. In order to develop and increase the role of transportation in tourism the countries should pay attention to the transportation modes specific to the regions must be developed, the transportation costs must always be kept competitive, the passengers must be attracted to sea and railway modes of transportation, new embarkation ports must be established in order to develop cruise travel, new fast train lines must be established and new fast trains must be bought and foreign experience must be applied. The distance from stations must be kept less, new coaches must be brought to the country, new technologically advanced aircraft must be put into air lines, the personnel must be trained. The government should allocate financial support for the development of transportation (Macola & Unger, 2018).

2.6 Development Strategies of Tourism Tourism is a growth industry many countries see the promotion of tourism as a development strategy. The development of tourism not only creates growth in the tertiary sector, but it can also have a positive multiplier effect and cause growth in the primary and secondary sectors as well. tourism not only creates jobs in the tertiary sector, it also encourages growth in the primary and secondary sectors of industry. This is known as the multiplier effect which in its simplest form is how many times money spent by a tourist circulates through a country's economy. Money spent in a hotel helps to create jobs directly in the hotel, but it also creates jobs indirectly elsewhere in the economy. The hotel, for example, has to buy food from local farmers, who may spend some of this money on fertiliser or clothes. The demand for local products increases as tourists often buy souvenirs, which increases secondary employment (Meehan, 2008). There are many benefits of using tourism as a development strategy. These are the tourism can create jobs, both directly (e.g. tour guides and people working in hotels) and indirectly (e.g. taxi drivers and maintenance staff employed by hotels); tourism creates extra income in a country, both through direct tourist expenditure and commercial tax receipts. The infrastructure improvements such as roads, airports, railways, electricity and water supply, all get improved as a result of tourist investment. However, developments may initially put a strain on supply and cause

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Sample output to test PDF Combine only price spikes while demand outstrips supply. Tourism development strategy can improve international relations, attracts foreign direct investment and increase entrepreneurship (Lee & Chan, 2008). Locals see opportunities to improve personal wealth. This sparks entrepreneurship while also encouraging individuals to finish education (i.e. get better language skills). New skills and technology introduced through the tourism sector can then be used in other aspects of the economy. As mentioned above the development of one sector can have positive effects in other sectors as well.

2.7 Tourism Concerned Environment and Sustainable Development The extent and nature of the environmental and ecological damage done by tourists is related to the magnitude of the development and the volume of visitors. Excessive and badly planned tourism development affects the physical environmental destinations. Poor and ill-conceived forms of tourism development also destroy irreplaceable natural environments, the true and long –term benefits of which may not have been properly evaluated. Furthermore, the tourists themselves are often guilty of helping to destroy the surrounding environment-the more attractive a site, then the more popular it becomes and more likely it is that it will be degraded by heavy visitation (Hillery, et al., 2001). Tourism both domestic and international is at a same time a positive force in helping to conserve the environment. Tourists are attracted to areas of high scenic beauty, regions of historical and architectural interest, and areas with abundant and interesting wildlife. Some of the money spent by tourists in the region, in particular the revenue received from entry fees, can be used to converse and improve the natural and manmade heritage, whereas tourism may also provide a use for otherwise redundant historic buildings. Despite its negative impacts, tourism contributes to regional and local sustainable development (Lopez & Bhakbitul, 2018) as well as to the conversation of the environment, since the tourism industry is a source of high income, generated in part because of the attraction to nature sites. Potential benefits from tourism can be divided into both tangible and intangible benefits. Tourists have an important economic effect on the areas they visit; the most tangible benefits are realised through direct expenditures on goods and services. Additionally, tourists have an indirect economic influence on host communities by both creating job opportunities in the

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Sample output to test PDF Combine only tourism industry and stimulating other job and business opportunities in related sectors. In addition, tourism promotes the development of infrastructures and facilities that equally benefit tourists and local populations (ADB, 2019). With Intangible benefits, tourism can contribute to public education and awareness. It can also help to generate political benefits and a better understanding between peoples of different cultures. Tourism can help local communities to become more aware of the value and uniqueness of their environment and culture traditions. In political benefits, a good government is a factor that determines the choice of tourist destinations. Therefore, the economy of a country also depends on international tourism, this dependence can encourage and reward a system of good governance in the country. Tourism can also contribute directly to the preservation of the environment; where nature is the foundation of tourist activities there is an incentive to conserve it. The potential of continued tourist income from ecotourism provides an incentive to preserve natural resources. A portion of tourism income could be devoted to the conservation and sustainable use of natural resources by introducing fees to protected areas and fees for activities such as fishing, bird-watching, scuba-diving, or hunting. Tourism can offer many interesting opportunities to save the environment. The contribution of Travel & Tourism to GDP grew the fastest in the following countries including Myanmar 6.9 percent in 2018 (Appendix -3).

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Sample output to test PDF Combine only

CHAPTER III TOURISM INFRASTRUCTURE IN MANDALAY

3.1 Historical Background of Myanmar Tourism Myanmar is a Southeast Asian nation of more than 100 ethnic groups, bordering India, Bangladesh, China, Laos and Thailand.Myanmar has a variety of natural beauty, waterfalls, magnificent lakes, enchanting cages, natural sandy beaches, the unique culture of different ethnic groups and the famous thousand-year-old glittering golden pagodas. Myanmar also has flora and fauna, resorts to rest and make excursion. Myanmar is also known as a cultural destination because of its numerous historical monuments, Buddhist temples and pagodas. There are other attractions for visitors who are specialized in Archaeology, Entomology, Birds, Plants, etc. Some adventurous tourists visit Myanmar for trekking, scuba diving, cross-country cycling, car rally and hot-air balloon flying. Furthermore, Myanmar is the only country in Southeast Asia with snow-capped mountains and Mt. Khakaborazi is the highest mountain in Myanmar. For eco-tourists, there are many new natural parks throughout the country. Tourism has become a growth sector in national economy following the liberalization of policies under the market-oriented economy. Tourism industry was systematically and firmly established in 1992 with the formation of the Ministry of Hotels and Tourism. It is responsible for policy formulation and implementation of action plans. The main directing staff under the Ministry is the Directorate of Hotels and Tourism whose main functions are planning, promotion, marketing and research, investment in tourism, facilitation and regulation of private sector. Myanmar Hotels and Tourism services is the commercial enterprise which manages state-owned hotels, tour operations (Myanmar Travel Tours), Duty Free Shops and local beverage businesses. On the national level, the Tourism Development Management Committee (DMC) has been formed and there are 12-Sub committees for various tasks. This high-level Committee reflects the Government’s commitment to the development of tourism as a potential economic sector.

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Sample output to test PDF Combine only Besides, tourism still remains a growing sector of the Myanmar economy. It is served internationally by numerous airlines via direct flights. Domestic and foreign airlines also operate flights within the country. Cruise ships dock at Yangon. Overland entry with a border pass is permitted at several border checkpoints. The government requires a valid passport with an entry visa for all tourists and business people. Moreover, tourism has been promoted by advocacy groups as a method of providing economic benefit to Burmese civilians, and to avoid isolating the country from the rest of the world. Voices for Burma, a pro-democracy advocate group and states, they believe that small-scale, responsible tourism can create more benefits than harm. So long as tourists are fully aware of the situation and take steps to maximize their positive impact and minimize the negatives, we feel their visit can be beneficial overall. Responsible tourists can help Burma primarily by bringing money to local communities and small businesses, and by raising awareness of the situation worldwide. A former Burmese tourism minister estimated that 12 percent of the government revenues are derived from tourism, with the tourism industry contributing US$182 million (2007) to the government's annual budget. Myanmar tourism industry can be categorized by three chronological segments which are (1) parliamentary democracy period of 1948-1962, (2) socialist period of 1962-1988, and (3) market-oriented period since 1988. During the parliamentary period, since Myanmar economy was capitalist oriented, there were several private local tour and travel operators as well as privately owned hotels in Yangon and other large cities throughout the country. Tourist Information Service (TIS) is a tourism branch of the Union of Burma Airways (UBA), and it took responsibility to cater to the rare tourists visiting the country at that time. Later, the Burma Economic Development Corporation (BEDC) set up a branch called “Tourist Burma” and the Tourist Information Service(TIS) was incorporated into this set up. Tourist visas were valid for one month during those days. After the Revolutionary Council took over the power of the state in 1962, the validity of entry visas was reduced to just 24 hours and the number of tourists drastically reduced. In 1964, Tourist Burma was taken over by Corporation No (20) under the Ministry of Trade in accordance with the nationalization law of the socialist regime. All the hotels were also nationalized and they were handed over to the Ministry of Trade. In 1971, Tourist Information Service (TIS) was revived in coordination with the Burma Airways Corporation (BAC). In 1978, the Tourist

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Sample output to test PDF Combine only Information Service (TIS) and Tourist Burma were amalgamated as the Hotel and Tourism Corporation under the Ministry of Trade. Tourism business during the socialist period was not commercially successful because the tourism policy was overshadowed by the policy of safeguarding the traditional values and customs of the nation from foreign influences. In September 1988, the State Law and Order Restoration Council (SLORC) renamed as the State Peace and Development Council (SPDC), and it took over the state power and adopted the market oriented economic system in 1997. Many of the economic reform measures introduced during the late 1980s and the early 1990s generated benefits. Participation of the private sector in the economy has increased and so also the tourism industry. The SPDC made efforts to expand its economic base and gave tourism as a priority by passing the Myanmar Tourism Law in 1990. Tourism in Burma has been developed mainly by the government. However, many private enterprises do exist, catering to a wide range of tourists. The Myanmar government has encouraged tourism since 1992. The Ministry of Hotels and Tourism was set up on 28 September 1992. Since then, the ministry has launched a drive to encourage foreign investment in tourism infrastructure and superstructure including joint venture partnerships and foreign direct investment (FDI). It has also announced an extension of the tourists’ visa validity and opened up some border crossing points in order to attract tourists from neighboring countries. New tourism resources have also been developed to promote the tourist attraction. The e-visa was also launched in 2004. Apart from the government agency the Myanmar Travels and Tours, there were 657 privately owned tour companies, 603 hotels altogether with 19040 rooms in 2005 and nearly 700 thousand tourists came to visit Myanmar during that year. In 2010, Myanmar transitioned from military dictatorship to democracy, a shift that has dramatically impacted the economic, social, and natural environment of this developing nation. The reopening of Myanmar’s borders after decades of isolation has led to a rapid surge in tourism. The new government made what appears to be a proactive gesture towards mitigating unregulated tourism development by publishing the Community Involvement in Tourism (CIT) policy in May 2013, a national program that advocates sustainable tourism development using the CBT approach.

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Sample output to test PDF Combine only In 2010, 791,505 tourists visited Myanmar, with 295,174 foreign tourists entering the country via Yangon International Airport. In 2012, more than 1 million foreign tourists visited Myanmar and that figure is expected to rise to around 1.5 million in 2013. In 2013, the Tourism Master Plan was created, targeting 7.5 million arrivals by 2020. The number of foreign arrivals reached more than 2.04 million, counting both air and overland arrivals in 2013.

3.2 Tourism Policy and Institutional Development Convinced that the tourism industry could benefit the economy within a short period, it set up the Ministry of Hotels and Tourism under which the Directorate of Hotels and Tourism and the Myanmar Hotels and Tourism Services were formed. There are three operational departments under the Myanmar Hotels and Tourism Services which are the Hotel Department, the Myanmar Travels and Tours, the Restaurants and Beverage Enterprises. The Directorate of Hotels and Tourism is responsible for implementation of tourism policies laid down by the Tourism Council and the Ministry of Hotels and Tourism. It also has a duty to improve the quality and standard of tourism by conducting training courses, discussions, exhibition, issuing licenses for operations permitted under the Tourism Law, and to generally supervise all operations of the industry. The Myanmar Travel and Tours (MTT) is the main earner for the Ministry. It has opened duty free shops, set up hotels and arranged for the provision of necessary services at various tourist sites within the country. The Myanmar Travels and Tours (MTT) is one of its sub departments and it operates as a tour agency. The organization of the Ministry of Hotels and Tourism is shown in figure 3.1. Myanmar Tourism Law was promulgated in June 1990 and it revised and enacted as Myanmar Hotels and Tourism Law in 1993. The law is related for licensing of hotel and tourism business. Private sector participation has increased significantly due to promulgation of this law. The Myanmar Tourism Promotion Board (MTPB) was formed as a mechanism to promote Myanmar on the international tourist map. The MTPB is chaired by the Director General of the Department of Hotels and Tourism and officials from both public and private tourism organizations are included as members.

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Sample output to test PDF Combine only Figure (3.1) Organization of the Ministry of Hotels and Tourism

Source: Ministry of Hotels and Tourism of Myanmar, https://tourism.gov.mm/

The Myanmar Marketing Committee (MMC) for tourism industry was formed by Hoteliers, tour companies, airlines, car rental agencies and cruise ship owners in Myanmar. The MMC conducts familiarization trip for overseas tour agents and travel writers. It also organizes Myanmar tour companies to participate at various international travel shows and road shows. The Union of Myanmar Travel Association (UMTA) was formed in 2002 under the directive of the Ministry of Hotels and Tourism. The principal tasks of the association are to organize various travel and tour companies under one umbrella and work for the development of the travel and tour business in the country. It also undertakes various Human Resource Development (HRD) programs for capacity building of tourism professionals of the UMTA.

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Sample output to test PDF Combine only 3.3 Private Sector Participation The Myanmar Tourism Law was promulgated in June 1990 and revised and then enacted as the Myanmar Hotels and Tourism Law on 23rd October 1993. The procedures and orders relating to the licensing of hotel and tourism business by this law are to order for licensing of tour enterprise, hotel and lodging-house business, tour guide business, and tourist transport business. Since the promulgation of this law, private sector participation has become significantly increased. The number of licensed tour companies, tourist transportation and tour guides are shown in (Appendix 4, 5 and 6). Regarding the data from the Myanmar Tourism Statistics from 2008 to 2017 (Appendix – 4), there were three different types of licensed tour companies such as foreign companies, J.V company and Local Company. The largest numbers of companies were local companies and the total number of licensed tour companies decreased from 709 companies in 2008 to 591 companies in 2009. Rate of increase or decrease licensed tour companies was calculated based on the previous year to calculate the following year increased or decreased rate in percentages. In year 2009 it was decreased by -16.64 percent2 based on the year 2008. In year 2011, it was increased by 15.35 percent based on the year 2010. The rate of development reached to 26.05 percent in 2016. However, the total numbers of growth rate of licensed tour companies were declined from 26.05 percent in 2016 to 5.71 percent in 2017 (Appendix – 4). The total numbers of licensed tourist transportations and the situation of increase or decrease from the year 2008 to 2017, there were no development of licensed tourist transportation during the period from 2008 to 2011. The development of licensed tourist transportation businesses started from 11.24 percent in 2012 to 331.89 percent in 2016. It was declined to 20.72 percent in 2017 (Appendix -5). The licensed tour transportations were lower than the tourist arrivals in Myanmar. When the tourist arrivals increase to meet the Myanmar Travel and Tour Plan, still the transportation facilities were behind the targets. Total numbers of licensed tour guides who have got licenses; their development of licensed tour guides gradually started increased from 6.11 percent in 2012 to 23.4 percent in 2016. There was no development in the earlier period from 2008 to 2010 (Appendix – 6). The licensed tour guides were still the lower numbers to

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Sample output to test PDF Combine only be compared with the tourist arrivals rate into Myanmar. The privately owned tourism businesses or private participation in tourism, they can be seen as private participation in tourism businesses such as licensed tour guides, licensed tourist transportation and licensed tour companies. The trend lines indicated as licensed tour guide, tourist transportation and tour companies, seem to be lower and negative trend in 2009; positive trend in 2010 and it declined in 2011. The development of licensed tour transportation remained the same from 2012 to 2017. However, licensed tour guides and licensed tour companies were fluctuated up and down from 2012 to 2017. Since licensed tour guides and tour transportation businesses closely depend on licensed tour companies, when licensed tour companies declined, the related two businesses of licensed tour guides and transportation were stable and no growth from 2012 to 2017 (Figure 3.2).

Figure (3.2) Trend of the Development of Private Participation in Tourism

Source: Ministry of Hotels and Tourism, Myanmar 2018

The number of local private owned, licenses hotels, motels and inns were increasing from 1497 in the year 2010-2011 to 3088 in 2016-2017. Besides, the numbers of their rooms are also increasing from 47624 in 2010 to 117473 in 2017 (Appendix – 7). The private participation can be concluded that the development of tourism started developed in 2012, and kept increasing until 2017. Total number of hotels, motels and inns were gradually increased starting from 2010 to 2017 (Figure

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Sample output to test PDF Combine only 3.2). The private participation can be concluded that the development of tourism started in 2012 and keep increasing until 2017.

Figure (3.3) Trend of the Number of Hotels, Motels and Inns No. of Hotels, Motels and Inns 3500

3000 3088 2770 2500 2402 2000 2048 1714 1500 1497

1000

500

0 2010-2011 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Source: Myanmar Tourism Statistics

Total number of hotels, motels and inns gradually increased from 2010-2011 to 2016-2017 (Figure 3.3). Since the total number of hotels, motels and inns were increased, these hotels need to follow the ASEAN Green Hotel Standard (2012). The foreign investment in hotels and commercial complex from 2008 to 2017 could be found as hotel business as completed projects from US$774.219 million in 2008 to US$1749.992 in 2017; projects under construction were from US$348.500 million in 2008 to US$993.445 million in 2017; and the Myanmar Investment Commission approved projects were from US$ 206.710 in 2013 to US$1627.528 in 2017 (Appendix- 8).

3.4 Tourist Arrival in Entry Points Tourism development also depends on the tourist arrivals. Tourist arrivals are classified based on the entry points, these are Yangon entry point, Mandalay, Nay Pyi Taw, Border Gateway and the lower tourist arrival points in Mawlamyin, MeiK, Muse, Tachileik, Myawaddy, Tamue, and Kawthaung are combined as one group and data are not available (NA). In 2017, border gateways entry point had the highest

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Sample output to test PDF Combine only tourist arrivals and the second tourist arrival 1146069 came in Yangon and Mandalay entry point was the third largest tourist arrival reached to 157860; the Nay Pyi Taw entry point, tourist arrival started with 5521 in 2011 and increased up to 17077 in 2017 (Appendix-9). Figure (3.4) presents the total number of tourist arrivals in each entry point and border entry point is the highest and it reached 3379437 in 2015 and Mandalay entry point had the highest tourist arrival reached to 157860 in 2017.

Figure (3.4) Number of Tourist Arrivals in Each Entry Point

Source: Myanmar Tourism Statistics

3.5 Infrastructure Development Tourism development also depends on the development of its related infrastructure, namely transportation, electricity, communication and other tourism- related services such as restaurants, food and beverages, recreation programs, souvenir shops and availability of items for personal use. The lack of (soft and hard) infrastructure is significantly impeding a country’s development and reducing that country’s attractiveness for foreign investment. That is why infrastructure is very importance to develop nation’s economic growth and increase foreign investment. Developing countries can adopt tourism as an engine for faster economic growth. However, tourism cannot prosper without proper infrastructure. Therefore, the

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Sample output to test PDF Combine only modernization approach emphasizes the role of government in developing roads, airport, harbors, and electricity and so on. The government, in collaboration with the private sector, has constructed a new road transport network and also upgraded old ones since it took over the state power but most of the road transport is still weak for convenient utilization and time consuming to get to the destination. The national transport network (road and railway) of Myanmar is outdated. Maritime transport is well-regulated and competitive and is growing rapidly and boosting the international cargo business. There is a need for greater development and regulation for telecommunication services. On the other hand, there has been a substantial increase in mobile services in recent years. The current situation of telecommunication is only able to meet the minimum requirements for local and intercity services for business and government, yet not advanced enough to meet the communication needs of international business. In most sectors, the provision of infrastructure and services is dominated by state-owned enterprises, while the participation of private investment and foreign investment are allowed under certain restrictions. In 2012, the government has put forward some new legislations (i.e. the Central Bank of Myanmar Law 2013) to promote uniform treatment of all financial institutions, whether private or state- owned. Due to a lack of capacity itself, Myanmar is demanding more foreign financial investment and technical assistance to enhance its infrastructure construction. Concerning air transportation, the conditions of Yangon international airport terminal and runway were not fit for heavy aircraft such as Jumbo- jets and air- buses. Therefore, the Yangon International Airport and the Mandalay International Airport have now been constructed to meet international standards. The other domestic airports have also been expanded and upgraded; but there are only 3 airlines flying the domestic routes and 14 international airlines landing in Myanmar, rather less when compared to 21 airlines15 in Sri Lanka. Inadequate and shortage of aircrafts can pose difficulties for the visitors to access to their journey. Railroad conditions, it is still lacking in improvement because they are pre- World War II built tracks. The widths of tracks are of small gauge and are meant only for steam engines. Nowadays, in most of the countries, broad gauges of 1.4358-meter railroad tracks are built instead of 1.1-meter gauge in order for trains to run with high

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Sample output to test PDF Combine only speed. In Myanmar, since railroad traveling cannot be upgraded, only the obsolete compartments are mended again and again to maintain the railway system. Therefore, many visitors cannot rely on rail transportation. The government has continuously increased the number of city buses in Mandalay for local commuters. As the buses are crowded most of the time, tourists usually have to incur more expenses to visit route by relying on taxi trips. The Government of the Republic of the Union of Myanmar (GOM) is undergoing political, economic and social change. The tourism industry has been identified by the Government of Myanmar (GOM) as one of seven economic pillars to support reform processes, create jobs and stimulate the expansion of the wider economy. The 2013–2018 Myanmar Tourism Master Plan (MTMP), produced by the Ministry of Hotels and Tourism (MOHT), sets out a framework for sector expansion and calls for the design of a tourism human resource development strategy to facilitate its implementation. Tourism is a labour intensive industry, forecast in the MTMP’s high-growth rate scenario to generate over a million new jobs by 2020. Most of these jobs are direct employment in the food and beverage, transport services and accommodation sectors. The industry also generates indirect employment through a wide variety of supply chain activity: in comparable economies this is roughly equal to the direct employment generated, meaning Myanmar’s tourism industry could generate roughly two million new jobs (direct and indirect) by 2020. By 2030 Myanmar will likely be receiving upwards of 12 million international visitors per year, with the sector providing direct employment for over 2 million people, and a total employment figure of over 4 million jobs. This have been undertaken by each and every economic and social sector in order to enhance human resource development. One of the objectives of Tourism policy in Myanmar is to upgrade the level of technical education on tourism and training which helps the local people getting the employment opportunities. Human resource development includes such measures as employee mentoring, training and career development, performance management and development, coaching, key employee identification, tuition assistance, and many other areas of organizational development related to employees and their betterment in the workplace.

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Sample output to test PDF Combine only The Directorate of Hotels and Tourism (DHT), jointly with the Kandawgyi Palace Hotel Training Centre conduct the two months training courses on the basic hotel operations such as front office operations, housekeeping operations, food and beverage service and bartending, and food and beverage production regularly. The DHT, the Singapore Tourism Board (STB) and the Singapore Hotels and Training Education Centre (SHATEC) successfully collaborated to launch the training courses as the first joint ministerial working committee. The following Modular Diploma and Certificate courses were started to conduct as the first phase in 1999-2000, which are Diploma in Hotel Management, Certificate in Supervisory Skills, Certificate in Food Preparation, Certificate on Front Office Operation, Certificate on Communication Skill, Diploma in HRD for Hospitality, Supervisory and Trainers, Certificate in Tourism Statistics, Certificate in Tourism Marketing. The guide training school under the Ministry of Hotels and Tourism also engaged in the Human Resource Development (HRD) programs. It undertakes such courses as language guide training and other competency courses. TheUnion of Myanmar Travel Association (UMTA) also conducted seminars, workshops and training courses for the industry professionals. The Ministry of Hotels and Tourism has undertaken measures in developing common competency standard in hospitality industry with the aim of producing competent staff to service both the travel and hotel industries. Myanmar tourism is still in its infancy when compared to neighboring BIMSTEC countries, especially Thailand and India. Though the government is aware of the importance of human resource development, human resource in this tourism industry is weak in experience to reach International Standard. As tourism is a service sector, it is important to enhance all dimensions of tourism related work. To enhance human resources, hotel related courses were conducted jointly with foreign training centre but the training needs to be expanded to enhance bigger number of trainees. Myanmar also actively participated in the meetings on tourism cooperation on Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), The Greater Mekong Sub region (GMS) and Mekong Region Tourism Development Plan (2019). To promote Myanmar as a unique tourist destination, the Ministry with the collaboration of the private sector has participated in major travel

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Sample output to test PDF Combine only fairs all over the world. However, in spite of numerous meetings at various levels of expertise and authority, human resource development such as vocational training still need to be encouraged and enhanced in order to offer better services in various tasks of the whole tourism sector.

Information and Communication Development The ease and reliability of communication is especially critical for the business travelers. The infrastructure system of post and telecommunication services includes postal services, telephones, telexes, facsimile and other electronic machines, radio relay, and television relay. In 2001, the E-Commerce and Development Report (ECDR) analyzed e-commerce and tourism with a view to exploring how the tourism industry was starting to benefit from information technologies and the Internet, as well as the effects on developing countries’ competitiveness in tourism markets. Therefore, the internet has come to be one of the most important factors for the development of the tourism industry and gives potential tourists immediate access to information on destinations worldwide. Consumers are more and more looking for tailor-made vacations and expect to obtain related information online. The Internet has provided consumers with an increasing number of options for obtaining information and organizing their trips, more travel choices, and price transparency in an online highly competitive environment. Meanwhile, the Internet represents a solution for direct sellers (hotels, transportation companies) enabling them to enter the market without paying fees to third-party intermediaries, and search engines drive significant volumes of traffic direct to suppliers. Tourism business and leisure travel has increasingly become one of the largest, fastest growing sectors of the global economy and an important component of globalization itself. About 700 million people travel around the world every year, directly injecting more than 500 billion dollars into the international economy. Many more aspire to do so in rich and poor countries. The associated capital investment and the indirect expenditure in dozens of related economic sectors from basic agriculture to modem telecommunications make tourism a sector which punches massively above its obvious weight.

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Sample output to test PDF Combine only In Myanmar, accessibility and usage of the internet is still limited and rather expensive in installation and charges because there is only one internet service provider in the country, which is under the Ministry of Posts and Telecommunications.

Entry Visa as E-Visa In order to promote tourism and attract tourists, the Myanmar government has extended the validity of entry visa for tourists to 28 days and that of the business visa have been extended to 70 days since 1998. It has also practiced opening up some border crossing point in order to attract tourists from neighboring countries. New tourism locations have been developed to promote the tourist attraction. The e-visa was also launched in 2004. Entry visa to Myanmar can be applied at Myanmar Embassies and Consulate General Offices abroad. Overland entry is permitted to Thai and Chinese tourists with border passes and to third party tourists with visas at designated checkpoints along Myanmar- Thailand and Myanmar – China borders. Visa on Arrival is granted to package cruise liner and chartered flight tourists and to Foreign Independent Travellers (FITs) from places where there is no Myanmar representation applicable through any licensed tour agencies in Myanmar or direct to the Ministry of Hotels and Tourism. To be able to get visa on arrival, visitors to Myanmar need to make some prior arrangement before arriving at the entry points of the country. Those who come on a package tour can obtain the visa on arrival. Therefore, visitors who want to visit Myanmar urgently or immediately will find it hard to get visa on arrival because of the necessary prior arrangements.

3.6 Tourism Contribution to GDP in Myanmar WTTC recognises that Travel & Tourism's total contribution is much greater and aims to capture its indirect and induced impacts through its annual research. The direct contribution of Travel & Tourism to GDP reflects the ‘internal’ spending on Travel & Tourism (total spending within a particular spending by government on Travel & Tourism services directly linked to visitors, such as cultural (e.g. museums) or recreational (e.g. national parks).

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Sample output to test PDF Combine only The total contribution of Travel & Tourism includes its ‘wider impacts’ (i.e. the indirect and induced impacts) on the economy. The indirect contribution includes the GDP and jobs supported by Travel & Tourism investment spending. This is an important aspect of both current and future activity that includes investment activity such as the purchase of new aircraft and construction of new hotels; Government 'collective' spending, which helps Travel & Tourism activity in many different ways as it is made on behalf of the Domestic purchases of goods and services by the sectors dealing directly with tourists –including, for example, purchases of food and cleaning services by hotels, of fuel and catering services by airlines, and IT services by travel agents. The induced contribution measures the GDP and jobs supported by the spending of those who are directly or indirectly employed by the Travel & Tourism industry. The total contribution of travel and tourism to GDP was MMK 6,457.1 Billion and the growth rate of contribution changes was 12.97 percent in 2017 (WTTC, 2019). Growth in the number of foreign tourists is bringing major changes to the basic structure of Myanmar’s tour industry. This fact has encouraged growth in foreign direct investment in hotels and other tour related facilities as foreign investors take interest in the new economic developments. The total contribution of travel and tourism to GDP (in MMK) has been increasing gradually from MMK 927 millions to MMK 6,457.1 million (from 2010 to 2017) (Appendix – 10). The growth rate of tourism income contribution to GDP in MMK is calculate to prepare the trend analysis and Figure (3.5) indicates the trend of the growth rate of tourism contribution to GDP with Myanmar Kyats (MMK). The contributions to GDP were upward trend in 2011, 2012 and 2014. It declined from 2015 to 2017.

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Sample output to test PDF Combine only Figure (3.5) Trend of Tourism Contribution to GDP (in MMK)

Source: WTTC 2017/ MoHT 2018

The number of tour agencies and tour guides has increased dramatically, as well as the number of hotels. Meanwhile, contribution of domestic expenditure by foreign tourists to Myanmar’s GDP has risen from 2 3 percent of GDP in 2010 to 7,1 percent of GDP in 2017 (Appendix-10).

3.7 Tourist Expenditure and Length of Stay in Myanmar Tourist arrivals in Myanmar was classified by gender; 37 percentof tourist arrivals were female and 63 percent were male tourists (Figure 3.6).

Figure (3.6) Tourist Arrivals by Gender

Source: Myanmar Tourism Statistics MoHT (2017)

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Sample output to test PDF Combine only Tourist arrivals were classified by the age groups; the largest tourist arrivals were 60 percent of the total tourist arrivals were the age 21 – 50-year-old. 50 years and above were 35 percent of total tourist arrivals in Myanmar (Figure 3.7).

Figure (3.7) Tourist Arrivals by Age Group

Source: Myanmar Tourism Statistics MoHT (2017)

The average length of stay increased significantly between 2012 and 2016, from 7 days to 11 days (Appendix - 11). The longer stay and the lower average daily expenditure between 2015 and 2016 that can be explained by the already mentioned decrease in prices in 2016, when the offer of tourism services, especially in terms of accommodation, started to boom. Overall, international visitors to Myanmar are mainly middle-aged men (Figures 3.7). Nearly 70 percent of international arrivals in Myanmar originate from Asian countries (mainly Thailand and China), where the profile of outbound tourists is also dominated by middle-aged men. Looking at the European market, on the other hand, the typical traveller is slightly older. Additionally, the increased length of stay could indicate that tourists are slowly starting to add secondary destinations to their trips, beyond the classic highlights. Myanmar received a total of approximately US$ 534 Million in 2012, 926 Million in 2013, and the highest amount received 2122 Million in 2015 from tourism expenditure. It increased to 2197 million in 2016 as compared to the previous year 2012 total tourism expenditure increased to 27 percent. In line with strong annual growth rates, a significant increase in the average expenditure per person per day was also seen over the past four years, with the average spent increasing from US$ 135 in 2012 to US$ 154 in 2016 (Shen et al. 2018). In the same time period, the average length of stay increased from 7 days to approximately 11 days. It should be noted that

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Sample output to test PDF Combine only this average length of stay figure most likely excludes day trippers from border arrivals (Figure 3.8).

Figure (3.8) Trend of Tourism Expenditures

The average length of stay increased significantly between 2012 and 2016 from 7 to 11 days (Appendix -11). The longer stay and the lower average daily expenditure between 2015 and 2016 can be explained by the already mentioned decrease in prices in 2016, when the offer of tourism services, especially in terms of accommodation, started to boom. Additionally, the increased length of stay could indicate that tourists are slowly starting to add secondary destinations to their trips, beyond the classic highlights. Figure 3.8 presents the trend of tourist expenditure from 2012 to 2016. Received from tourist expenditures declined in 2014 and it was an increasing trend until 2016.

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Sample output to test PDF Combine only

CHAPTER IV TOURISM INDUSTRY DEVELOPMENT IN MANDALAY

4.1 International Tourist Arrival This thesis focuses on the development of tourism in Mandalay Division by using trend analysis with time series data sets to determine the tourism development in Mandalay. Secondary data are collected from the Ministry of Hotels and Tourism and the Central Statistical Organisation (CSO); these are accurate macro and micro economics databases. Total numbers of tourist arrivals in Mandalay, the data from 2006 to 2017 were collected from the Ministry of Hotels and Tourism website, Central Statistical Organisation and the Hoteliers Association in Mandalay. International tourist arrivals in Mandalay are stated in the following Table 4.1, there were strong demands started to visit Mandalay in 2010-2011 because the total numbers of tourist arrivals have started increased since 2010-2011. Tourist arrivals by air was 233,453 in 2006-2007, it reached 1,254,536 in 2016-2017; therefore, the rate of growth reached to 437 percent in 2016-2017; all calculation used the based year 2010-2011. Tourist arrival by sea increased from 162,130 (2006-2007) to 350,253 (2016- 2017); therefore, there were apparently increasing tourist arrival by air in 2016-2017. The tourist arrivals by land was the highest increasing from 257,966 (2006-2007) to 1,474,483 (2016-2017). Total number of tourist arrivals were 653,549 (2006-2007) to 3,079,272 (2016- 2017); the tourist arrivals were nearly 5 times larger in (2016-2017) to compare with the tourist arrivals in 2006-2007. The findings indicate that there was a development of the tourist arrival in different sources from 2006-2007 to 2016-2017.The highest numbers of the international tourist arrivals by land, they were from neighbouring countries like China and Thailand. The neighbouring countries visited more and more during the 2015-2016. Figure (4.1) presents the highest tourist arrivals by air and sea were in Mandalay in 2016-2017.

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Sample output to test PDF Combine only Table (4.1) Tourist Arrivals in Mandalay (2006 – 2017) Year By Air By Sea By Land Tourist Arrivals 2006-2007 233453 162130 257966 653549 2010-2011 334278 125223 333237 792738 2011-2012 334278 125223 333237 792738 2012-2013 681376 159643 498423 1339442 2013-2014 924401 253644 1126572 2304617 2014-2015 1123706 245897 2073406 3443009 2015-2016 1222417 318369 2738273 4279059 2016-2017 1254536 350253 1474483 3079272 Source: Ministry of Hotels and Tourism, Mandalay 2018

In Mandalay, there were the larger numbers of the international tourist arrivals by land, they are from neighbouring countries China and Thailand (Shen et al. 2018). According to Table (4.1), the total number of tourist arrival by land in Mandalay increased from 257,966 in 2006-2007 to 2,738,273 international visitors in 2016-2017. In the earlier years, the total number of tourist arrivals were very low. The number of tourist arrivals by air in Mandalay have increased since 2009; the total number of tourist arrivals increased from 233,453 in 2006-2007 to 1,222,417 in 2016-2017.

Figure (4.1) The Trend Tourist Arrivals in Mandalay Tourist Arrivals via Different Sources 3000000 2738273 2500000 2000000 2073406

1500000 1474483 1000000 1126572

500000 498423 333237 333237 318369 350253 162130257966 159643 253644 245897 0 125223 125223

By Air By Sea By Land

Source: Ministry of Hotels and Tourism, Mandalay 2018 (data not available for 2007-2008 and 2008-2009)

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Sample output to test PDF Combine only Figure (4.1) presents the tourist arrivals highly increased during the period from 2006 to 2016. The international tourist arrival by sea which was the lowest number of tourist arrivals, however, all sources of tourist arrivals were increased. Tourist arrivals by land indicated that many tourists came and visited Mandalay, however, tourist arrivals were declining in 2016-2017. It means that there were nearly 3 million tourists arrived at Mandalay in 2015-2016; it declined to around 1.4 million arrivals in 2016-2017. Regarding the targeted tourist arrivals by the Ministry of Hotel and Tourism in Myanmar, the expected total number of tourists are to meet 7 million targets by 2020. This study aims to contribute the development of tourism as one of the major fulfilment to have more tourist arrivals in Mandalay.

4.2 Hotels, Motels and Inns in Mandalay Table (4.2), during the study period from 2006-2007 to 2016-2017, total numbers of state owned hotels, motels and inns increased from 2 to 10. The total number of private owned hotels, motels and inns obviously increased from 173 to 416; and the total number of cooperative owned hotels, motels and inns increased from 3 to 9. Total numbers of hotels, motels and inns from the three sectors have been increasing year after year, the development has started in Mandalay since 2010-2011. The development of hotels, motels and inns in 2016-2017, reached to 435 and nearly 3 times higher than the total numbers 178 in 2010-2011. The cooperative owned hotels, motels and inns were not increased in the earlier year from 2006-2007 to 2009-2010. The cooperative owned hotels, motels and inns started increase from 2010-2011 to 20112-2013; after that period the cooperative owned sector slightly decline from 9 to 7 from 2013 to 2016; however, it increases from 7 to 9 in 2016 -2017. The development of hotels, motels and inns owned by privately was the most important contribution of the hotel and tourism sector in Mandalay.

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Sample output to test PDF Combine only Table (4.2) Hotels, Motels and Inns in Mandalay (2006 – 2017)

Source: Central Statistical Organisation, 2017

Figure (4.2) Ownership of Hotel, Motel and Inns in Mandalay

2% 2%

96%

State owned Private owned Cooperative owned

Source: Ministry of Hotels and Tourism, Mandalay 2018

Figure (4.2) presents the percentage of state owned, private owned and cooperative owned hotels, motels and inns in Mandalay in 2018. The biggest portion of hotels, motels and inns were owned privately; they were 96 percent of the total hotels, motels and inns in Mandalay. State owned and cooperative owned hotels,

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Sample output to test PDF Combine only motels and inns were very less number and around 4 percent of the total hotels, motels, inns are owned by the government in Mandalay.

4.3 Rooms of Hotels, Motels and Inns in Mandalay Hotels, motels and inns in Mandalay increased total number of hotel rooms to provide the accommodations to tourists to meet their lodging requirements because the number of tourist arrivals were increasing from starting from the year 2006-2007 to 2016-2017. The more tourist arrivals would need the more number of the hotel rooms required to developed in Mandalay. In Table (4.3), the total number of rooms available for the tourists in Mandalay; state own sector could not increase the total number of rooms available 250, remained the same from 2006-2007 to 2009-2010. Sate owned total number of hotels, motels and inns were increased to 630 rooms in 2010-2011. However, it declined to 509 in 2012-2013. As private owned rooms of hotels, motels and inns in Mandalay were 4900 in 2006-2007; the total number of rooms increased from 6801 in 2010-2011 to 17261in 2016-2017. State owned sector declined and the private owned sector developed. The total numbers of rooms of hotels, motels and inns owned by the cooperative organisation were only 33 and could not increase from 2006-2007 to 2009-2010, it was increased to 304 rooms in 2010-2011; declined again from 155 rooms in 2013-2014 to 104 rooms in 2016-2017. The total room numbers of hotels, motels and inns in Mandalay sharply increased from 7735 rooms in 2010-2011 to 17,888 rooms in 2016-2017. In general, there were no development from the period 2006-2007 to 2009-2010. The development of hotels, motels and inns and their rooms were started in the year 2010- 2011 and gradually developed until 2016-2017. Among the three sectors as state owned, private owned and cooperative sectors, the significant development was only in the private sectors (Table 4.3). Regarding the above presentations, the development of hotels, motels and inns and their rooms were much lower than the tourist arrivals in Mandalay division.

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Sample output to test PDF Combine only Table (4.3) Rooms in Hotels, Motels, and Inns, Mandalay (2006 – 2017)

Source: Ministry of Hotels and Tourism, Mandalay 2018

This study compares the trends of tourist arrivals and rooms available in Mandalay so that the development was to be clearly stated in Figure (4.3). There were no changes in the development from 2006-2007 to 2009-2010, the upward trends were shown starting the development from the period 2011-2012 to 2016-2017. The trend of the development of beds were much lower than the development of tourist arrivals.

Figure (4.3) Trends of Tourist Arrivals and Room Development in Mandalay

Source: Ministry of Hotels and Tourism, Mandalay 2018

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Sample output to test PDF Combine only

Figure (4.3) presents the trend of tourist arrivals and hotel rooms in Mandalay over the period from 2010 to 2011 to 2016-2017. The two trends were a big gap between the available number of rooms and the total number of tourist arrivals. Tourist arrivals declined in 2016-2017. Even those the total number of tourist arrivals were significantly declining in 2016-2017, the total number of available rooms for tourists were much lower than the total numbers of tourist arrivals in Mandalay.

4.4 Trend of Tourist Arrivals and No. of Beds in Mandalay The trend of tourist arrivals and the trend of beds available in Mandalay (Figure 4.4), indicates the big gap between the two trends. The trend of tourist arrivals was upward trends and reached to the total numbers of tourists 4,279,059; it was the highest number of tourist arrivals in 2015-2016. The number of beds was slightly upward reached to the total number of beds 33,658 in 2016-2017. Both numbers are the highest in 2016-2017. The situation was clearly indicated as the development of tourist arrivals were higher and the development of beds were very much lower situation from 2011-2012 to 2015-2016. Therefore. tourism development in Mandalay needs to provide more accommodations to meet the targeted tourist arrivals in future.

Figure (4.4) Trends of Tourist Arrivals and No. of Beds in Mandalay

Source: Ministry of Hotels and Tourism, Mandalay 2018

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Sample output to test PDF Combine only 4.5 Total Numbers of Beds in Hotels, Motels and Inns by Ownership In the Table (4.4), State owned hotel beds, private owned beds, cooperative owned beds and total beds available for tourists in Mandalay, are presented.

Table (4.4) No. of Beds in Hotels, Motels and Inns, Mandalay (2006 – 2017)

Source: Ministry of Hotels and Tourism, Mandalay 2018

According to the Table (4.4) public owned hotel beds; private owned beds, cooperative owned beds and total beds available presents the trend of tourist arrivals and number of beds available in Mandalay from the period 2006-2007 to 2016-2017; the beds available for the tourist arrivals were not changing from 2006-2007 to 2009- 2010. After that period the tourist arrivals were obviously increased and beds available in hotels, motels and inns were not significantly increasing. Therefore, the shortages of beds compare with the increasing number of tourist arrivals from 2006- 2007 to 2016-2017. However, tourist arrivals declined in 2016-2017. Mandalay has good safety to all travellers to promote and achieve developing tourism industry in Mandalay. It needs more available hotels, motels and inns, especially the state-owned hotels, motels and inns to provide more available rooms and beds. State owned are to provide good and safety services to the international tourists.

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Sample output to test PDF Combine only 4.6 Inbound and Outbound Tourists in Mandalay Table (4.5), there were inbound and outbound, numbers of travellers in Mandalay. Inbound and outbound travellers have been increasing year after year. Inbound travellers were 474,497 and Outbound travellers were 324,118 in Mandalay (2015-2016). Inbound travellers were 527954 and outbound travellers were 411009 in (2016-2017). Both inbound and outbound travellers increased in (2017 – 2018) and reached to 617,656 and 464,351 respectively in Mandalay. In Mandalay the total number of inbound travellers were more than the total number of outbound travellers in each financial year. This finding indicates that outbound tourism requires to develop more in Mandalay.

4.7 The Trend of Income from Tourism in Mandalay Figure (4.6) present that Mandalay hotels, motels and inns could earn income from tourism as local currency (MMK Lakhs). Income from tourism in US$ 10597212 for the period from 2015-2016 to 2017-2018. The income condition in Myanmar Kyats increased from Ks67346.48 (Lakhs) in 2015-2016 to Ks105318.89 (Lakhs) in 2017-2018. Tourist arrival in Mandalay decreased in 2016-2017, however income increased because of the inbound tours have been increased year after year, it might be the reason of the increasing income in Myanmar Kyats.

Figure (4.5) Income from Tourism in Mandalay (Kyats) Hotel and Tourism Income (Kyat) 120000 110704.68 100000

80000 77841.22 81822.83 67346.48 60000

40000

20000

0 2015-2016 2016-2017 2017-2018 2018-2019

Source: Ministry of Hotel and Tourism, Mandalay 2018

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Sample output to test PDF Combine only Table (4.5) Mandalay Inbound and Outbound Tourists in Numbers

2015-2016 2016-2017 2017-2018 No Month Inbound Outbound Income Ks US $ Inbound Outbound Income Ks US $ Inbound Outbound Income Ks US $ 1 April 36917 14274 4545.58 488125 46551 20262 7044.51 488030 50630 17496 8271.15 613076 2 May 38244 16184 4853.91 432381 43934 21080 6683.49 449646 49832 27076 8227.60 600490 3 June 36290 13621 4662.62 401538 39454 17908 5696.34 398370 44122 27365 7312.31 550177 4 July 38243 17048 4868.54 459854 43329 13748 6528.20 546236 47603 32432 7659.69 544460 5 August 37763 19020 5030.69 554247 42414 26228 6324.83 601304 47163 33309 7860.28 580307 6 September 38535 18392 4841.13 666889 40006 23131 5914.00 542083 46309 29672 7694.25 549956 7 October 42802 25438 5830.89 898994 45521 34207 7569.50 997264 58791 42746 10939.5 838826 8 November 36784 40719 5806.97 1586486 43998 52375 7809.55 1702201 53616 61067 10265.1 1939054 9 December 45238 41355 6928.79 1357344 48402 47945 8293.70 1345922 56963 48496 9309.44 926190 10 January 41090 40533 6879.92 1466830 43270 53051 8061.13 1500887 58072 56793 9671.41 1212200 11 February 40500 39150 6542.46 1216880 42542 55482 8050.85 1544732 47127 45747 8855.60 1006322 12 March 42091 38384 6554.98 1067644 48533 45592 8158.81 1124632 57428 42152 9252.51 1178490 Total 474497 324118 67346.48 10597212 527954 411009 86134.91 11241307 617656 464351 105318.9 10539548 Source: Ministry of Hotel and Tourism; Mandalay Hoteliers Association 2019

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Sample output to test PDF Combine only Table (4.6) presents the income from tourism in US$ from 2015-2016 to 2017- 2018. In 2016-2017 tourist arrivals were declined and revenue which was collected from Mandalay Hoteliers Associations. The reason of increasing income rather than decreasing as declining tourist arrivals in Mandalay for the period 2016-2017. The tourists might spend more US$ in Mandalay. The income from tourism in US$, it was US$11, 241,307 in the year 2016-2017.

Table (4.6) Tourism Income in Mandalay (in US$) 2015-2016 2016-2017 2017-2018 Month US$ US$ US$ April 488125 488030 613076 May 432381 449646 600490 June 401538 398370 550177 July 459854 546236 544460 August 554247 601304 580307 September 666889 542083 549956 October 898994 997264 838826 November 1586486 1702201 1939054 December 1357344 1345922 926190 January 1466830 1500887 1212200 February 1216880 1544732 1006322 March 1067644 1124632 1178490 Total 10597212 11241307 10539548 Source: Mandalay Hoteliers Association

In 2016-2017 tourist arrivals declined, however revenue from inbound and outbound were increased. The reason of increasing income rather than decreasing in Mandalay for the period 2016-2017, the hotels, motels and inns increased in Mandalay. Therefore, income from tourism was US$11, 241,307 in the year 2016- 2017; and US$10,539,548 in 2017-2018.

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Sample output to test PDF Combine only Figure (4.6) Trends of Monthly Income in US$, Mandalay (2015 – 2016) Hotels and Tourism Income in USD 2015-2016 1800000 1600000 1586486 1466830 1400000 1357344 1200000 1216880 1000000 1067644 898994 800000 600000 488125 666889 432381 554247 400000 401538459854 200000 0

Source: Mandalay Hoteliers Association, 2015-2016

Figure (4.7) presents the trend of monthly income in US$ increasing in 2015- 2016. The highest amount of income was US$1586486 in November. More income were earned in November, December, January and February.

Figure (4.7) Trends of Monthly Income in USD, Mandalay (2016 – 2017) Hotels and Tourism Income in USD 2016-2017 1800000 1702201 1600000 15008871544732 1400000 1345922 1200000 1124632 1000000 997264 800000 600000 488030 449646 546236601304 542083 400000 398370 200000 0

Source: Mandalay Hoteliers Association, 2016-2017

In 2016-2017, income from hotel and tourism increased as previous year; the highest income in November and the higher incomes were in December, January and February.

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Sample output to test PDF Combine only Figure (4.8) Trends of Monthly Income in USD, Mandalay (2017 – 2018) Hotels and Tourism Income in USD 2016-2017 2500000

2000000 1939054 1500000 1212200 1178490 1000000 1006322 613076 838826 926190 600490 550177 580307 549956 500000 544460 0

Source: Mandalay Hoteliers Association, 2017-2018

The trend of monthly Mandalay tourism income in USD were the seasonal trend and it indicated that every year from November to March are the upward trend and highest income from tourism. It can be observed the same pattern of trend in Figure (4.7), (4.8) and (4.9).

4.8 The Trend of Mandalay Tourism Income Development The trend of the development of tourism income compared for three years from 2015-2016 to 2017-2018. Every year, the upward trend of incomes were from October to February in Figure (4.9). The highest incomes were earned in 2017-2018.

Figure (4.9) The Trend of Tourism Income in US$, Mandalay Hotel and Tourism Income in US$ 6000000 5000000 4000000 3000000 2000000 1000000 0

2015-2016 2016-2017 2017-2018

Source: Ministry of Hotels and Tourism, Mandalay 2018

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Sample output to test PDF Combine only There was a development of tourism incomes in the years, from 2015-2016 to 2017-2018. Regarding the findings from the tourist arrivals and hotel rooms and beds in Mandalay over the period from 2010 to 2011 to 2016-2017. these two were a big gap between the total number of tourist arrivals and the available rooms of hotels, motels and inns; as well as the total number of beds in Mandalay Division. Tourist arrivals declined in 2016-2017, even those the total number of tourist arrivals were significantly higher than the total number of rooms for tourists. Regarding the findings, the development of tourist arrivals was obviously higher than the development of rooms and beds available in Mandalay. If the targeted tourist arrivals increase in the following years, there will be the significant development of tourism needed in Mandalay and still some more investment required for the development of hotels, motels and inns in Mandalay. Since the tourism development attaches with other industry sectors, this study suggest that the further researchers will have to conduct more studies in the other tourism related sectors in Mandalay.

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Sample output to test PDF Combine only

CHAPTER V CONCLUSION

5.1 Findings This study highlights the trend of the total number of tourist arrivals by land in Mandalay increased from 257,966 in 2006 to 2,738,273 international visitor arrivals in 2016. In the earlier years, the total number of tourist arrivals were very low, only 653549 tourist arrivals because of the tourism development depended on political and legal situation. In 2007 and 2008, there was tourist arrival rate and more hotel rooms available and less tourist arrival. The number of tourist arrivals by air in Mandalay have increased since 2009. Generally, tourism development and the development of tourist arrivals started from the financial year 2011-2012. The international tourist arrivals by sea which was the lowest number of tourist arrivals to compare with the other arrivals by air and land. However, all sources of tourist arrivals were increased. This study highlights the development of tourist arrival in Mandalay reached from 653549 to 4279059 in 2015-2016; it declined to 3079272 in 2016-2017. Therefore, the tourist arrival in Mandalay was consistence with the tourist arrivals in Myanmar. The tourism development in Mandalay has more opportunities because the trend of the development of the tourist arrivals was higher than the trend of the development of hotels, motels and inns; same situation as lower trend line of rooms available to meet the development of tourist arrivals. The tourist arrivals and the hotel rooms were unbalance development in Mandalay throughout the study period. Since the earlier period 2007 and 2008, there were less tourist arrival rates; and there were more hotel rooms available and less tourist arrival. Similarly, the tourist arrival and the hotel beds were not aligned in the earlier period. There were upward trend of tourist arrivals and rooms in hotels, motels and inns starting from 2011-2012 to 2016- 2017. The development of tourist arrivals and tourism business were developed during that period, however, the tourist arrivals were larger number than hotel rooms and hotel beds available in Mandalay, from 2011-2012 to 2015-2016. The tourist

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Sample output to test PDF Combine only arrival decreased in 2016-2017. Findings indicate that the same pattern of the development of hotel rooms and hotel beds, the development of hotel business could not meet the development of tourist arrival throughout the year from 2010-2011 to 2016-2017. Since ASEAN tourism market has been expending and many neighbouring countries such as China and Thailand were increasingly visiting in Myanmar and reached in Mandalay because the development of tourist arrivals by land was the highest number in 2016-2017. Hotel business in the state-owned sector and cooperative sector were lower to compare with the private owned hotel business in Mandalay. There are only two 5 Stars hotels, therefore, state owned and private owned sectors can facilitate joint venture with the international hotels to develop the international standard hotels in Mandalay. There total contribution of travel and tourism income to GDP was 6.8 percent of total economy in 2017-2018. The development of tourist arrival in Mandalay was around 60 percent and the growth rate of hotel rooms and hotel beds were only 4 percent; therefore, the two developments were a big gap in the study period. In 2013, The development of tourist arrivals was much higher than the development of accommodation in Mandalay. The hotel business or the development hotel beds was slightly increased to 44 percent. In 2017, there were no development rate of hotel beds and tourist arrivals; it was needed to develop again. Regarding the development situation of tourist arrivals and the development of hotel bed were unbalance and inconsistent situation during the study period. Findings indicate that tourist arrivals need to be developed as well as hotels and have to be promoted in Mandalay.

5.2 Suggestion Tourism has become an important sector that has an impact on the development of Mandalay. The main benefits of tourism are income creation, generating of jobs and foreign currency exchange inflows in Mandalay; it is also the most important source of social welfare. The ability of the national economy to get the benefit from tourism depends on the availability of investment; to develop the necessary infrastructure so that its ability to supply the needs of tourists, although Myanmar possesses great tourist potential and it has many attractions in a variety of heritage culture, even though much of the tourism businesses need to be promoted to

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Sample output to test PDF Combine only meet the international standard. The tourism development in Mandalay is an important which has a large value chains such as transportation, hotels and accommodation, food and beverages, handicrafts production, tourism education, and banking services. The development tourism development can create more income and can generate more job opportunities. The Ministry has partnered with existing training providers and the Myanmar Travel and Tours has to deliver basic training via a six-week hospitality training course to the 11 ‘tourism zones’ including Mandalay. These training has yet to align with the ASEAN competency standards. There will be another room to conduct research regarding the human resources if aligns with their tourism education to meet ASEAN standards. Tourism industries in Mandalay need to build more hotels and to fulfil the targeted more tourist arrivals in Mandalay. For the development of tourism industry in Mandalay, not only increasing hotels but also for following infrastructures need to be promoted; these are transportation such as planning for more airline, railway, ship and road package tours. Security system and safety systems are required. Electricity, water supplies and green environment are to be cared. Therefore, the development of tourism industry and its related businesses in Mandalay can be implemented by private sector, state owned, in the form joint venture, public private partnerships (PPP). In 2015, the majority of visitors to Myanmar were from Asia with Thailand 16 percent as the top Asian source market followed by China 11percent. Myanmar saw the largest increase of visitors from China at a rate of17.8percent over 2014. European travellers remain the main regional source market due to early exposure of Myanmar as a tourist destination in the European countries. In 2015, total airport arrivals through Yangon, Nay Pyi Taw, Mandalay, Mawlamyine and Myeik gateways reached 1.31 million. As the main transportation hub, arrivals through Yangon account for 91percent of the total airport arrivals. There are four main purposes of visit, namely tourist visa (42percent, individual and group), business travellers 16percent, entry visa for visiting friends and relatives 5percent and all other categories37percent.Compared to other destinations in the region, Myanmar’s average travel expenditure can be considered high. For instance, the average spending per tourist per day in 2015 is US$140 in Thailand, US$154 in Indonesia and US$126 in Vietnam. Coupled with a long average length of

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Sample output to test PDF Combine only stay, traveling in Myanmar can be considered expensive for its tourism products at the current stage of development. Tourism related industries such as food and health also need to be developed to have more tourists in Myanmar. It should be noted that majority of the hotel rooms across the country fall into the budget to mid-scale segment and are unbranded (run by local owners/operators). Hence, the quality of the hotels may not be standardized across the country. Most internationally branded hotels are located in Yangon and Nay Pyi Taw to cater to commercial demand and government requirements. Mandalay has limited presence of branded hotels in the leisure destinations as these markets have only recently opened up and gained recognition amongst international travellers. Myanmar holds largely untapped potential as a new tourism destination in Southeast Asia. The progressive moves to assist in the smooth development of the tourism industry, it would take time for the government to implement the changes, and investors are still waiting for policies to be clearer. However, as the business environment and tourism attractions improve further, Myanmar should expect new investment opportunities to arise, especially in the ecotourism destinations. Tourism is a developing industry in many countries, they see the promotion of tourism as a development strategy of their economy. The development of tourism not only creates growth in the tertiary sector, but it can also have a positive multiplier effect and cause development in the primary and secondary sectors as well. tourism creates jobs in the tertiary sector, it also encourages growth in the primary and secondary sectors of industry. This is known as the multiplier effect in which its simplest form is how many times money spent by a tourist circulates through a country's economy. Money spent in a hotel helps to create jobs directly in the hotel, but it also creates jobs indirectly elsewhere in the economy. The hotel, for example, has to buy food from local farmers, who may spend some of this money on fertiliser or clothes. The demand for local products increases as tourists often buy souvenirs, which increases secondary employment. There are many benefits of using tourism as development studies because tourism can create jobs, both directly (e.g. tour guides and people working in hotels) and indirectly (e.g. taxi drivers and maintenance staff employed by hotels), further research in the development of employment study can be conducted as further

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Sample output to test PDF Combine only research. The further research can be conducted to study the development of cottage industry or handicraft industry related to small scale enterprise development studies in Mandalay division. The development study of transportation that can support the tourism industry. infrastructure improvements such as roads, airports, railways, electricity and water supply, all get improved as a result of tourist investment. Tourism development strategy can improve international relations, attracts foreign direct investment and increase entrepreneurship. Locals see opportunities to improve personal wealth, regarding the tourism skill development studies might be one of the further researches. New skills and technology introduced through the tourism sector can then be used in other aspects of the economy. As mentioned above the development of one sector can have positive effects in other sectors as well. Therefore, the development studies in each industry sector could be several further research by linking with the tourism development.

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Sample output to test PDF Combine only

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Sample output to test PDF Combine only REFERENCES

Ashraf, H. and Mathur, P. (2003). Human Resource Development in Tourism Industry, New Delhi: Excel Books. Battaglia, M., Daddi, T., & Rizzi, F. (2012). Sustainable tourism planning and consultation: evidence from the project INTER. ECO. TUR. European Planning Studies, 20(2), 193-211. Cortes-Jimenez I, Pulina M, RieraiPrunera C, Artis M. (2009). Tourism and exports as a means of growth.Research Institute of Applied Economics: accessed January 15, 2013: Culpan, R. (1987). International tourism model for developing economies, Annals of Tourism Research, Vol. 14, 541-552. Dekle, R., Eaton, J., & Kortum, S. (2007). Unbalanced trade. American Economic Review, 97(2), 351-355. Dritsakis, N. (2004). Tourism as a Long-run Economic Growth Factor: An Empirical Investigation for Greece, Tourism Economics, 10 (3), (September 2004):305-316. Durbarry, R., (2004). Tourism and Economic Growth: The Case of Mauritius, Tourism Economics, 10, (3): 389-401. Gharbin, E. K. J. (2009). The role of African performance arts and arts and the significance of the human factor in the development of the tourism industry of Oguaa and India. Hillery, M., Nancarrow, B., Griffin, G., & Syme, G. (2001). Tourist perception of environmental impact. Annals of Tourism Research, 28(4), 853-867. Jigang, B., &Jiuxia, S. (2007). Differences in Community Participation in Tourism Development Between China and the West. Chinese Sociology & Anthropology, 39(3), 9–27. Kimaro, J. (2012). The role of transportation system in promoting tourism development, attracting more tourists through better transportation system, LAMBERT Academic Publishing, 978-3-659-29751-9. Lee C-C, Chang C-P. (2008). Tourism development and economic growth: a closer look at panels. Tourism Management 29:180–192

Sample output to test PDF Combine only Lopez, J., &Bhaktikul, K. (2018). Sustainable Environment and Tourism Industry: An Institutional Policy Analysis of Northeastern Thailand. Polish Journal of Environmental Studies, 27(1), 31–37. Macola, G., Unger, L. (2018). Tourism Value Change Report: Myanmar. Majia, J. (2018). Words from the Fire: Poems by Jidi Majia. University of Hawaiʻi Press. McKinnon RI. (1964). Foreign exchange constrains in economic development and efficient aid allocation. Economic Journal 74:388–409. Meehan, E. R. (2008). Tourism, Development, and Media.Society, 45(4), 338–341. Ministry of Hotel and Tourism (2017). A review of tourism education and training providers Myanmar-Luxembourg Development Cooperation, Non-paper- 5April2017-Myanmar-tourismindustry_2.pdf. (n.d.). Ministry of Hotel and Tourism (2018). Myanmar Tourism Statistics, (Various Issues 2016, 2016, Mandalay). Ministry of Hotel and Tourism (2018). Myanmar Tourism Statistics, (Various Issues 2017, 2017, Mandalay). OECD (2014). OECD Tourism Trends and Policies 2014, OECD Publishing, Paris. OECD (2015). “A Review of Effective Policies for Tourism Growth”, OECD Tourism Papers, 2015/01, OECD Publishing. Ohno, Y. (2019). Comparing cooperation between Vietnam-the Netherlands and Vietnam-Japan to understand how water flows are shaped by development activities. Rasidah, H., Jamal, S. A., & Sumarjan, N. (2014). A Conceptual study of perceived value and behavioral intentions in green hotels. Australian Journal of Basic and Applied Sciences, 8(5), 254-259. Routledge, P. (2001). “Selling the rain”, resisting the sale: Resistant identities and the conflict over tourism in Goa. Social & Cultural Geography, 2(2), 221–240. Shen, E., Leng H. M, CHEE, C. Y. (2018). In Focus: Myanmar, HVS Global Hospitality Report is the property of HVS International. Tasci, A. D., & Gartner, W. C. (2007). Destination image and its functional relationships. Journal of travel research, 45(4), 413-425. Zhenhua, L. (2003b). Sustainable Tourism Development: A Critique AU. Journal of Sustainable Tourism, 11(6), 459–475.

Sample output to test PDF Combine only WEBSITES

http://dx.doi.org/10.1787/ tour-2014-en http://www. ub.edu/irea/working papers/2009/200910.pdf. https://doi.org/10.1007/s12115-008-9111-7 https://doi.org/10.1080/00131857.2015.1135410 https://doi.org/10.1080/09654313.2012.650908 https://doi.org/10.1080/09669580308667216 https://doi.org/10.1080/14649360120047823 https://doi.org/10.15244/pjoes/75198 https://doi.org/10.2753/CSA0009-4625390301 https://tourism.gov.mm/.../HRDSAP-Strand-6-EDUCATION-AND-TRAINING- FINA. https://www.adb.org/projects/46293-001/main. https://www.asean.org/storage/2012/05/ASEAN-Green-Hotel-Standard https://www.wttc.org/economic-impact/country-analysis World Travel and Tourism Council, 2018, https://www.wttc.org/economic- impact/country-analysis World Travel and Tourism Council, 2018, https://www.wttc.org/economic- impact/country-analysis

The World Travel and Tourism Council, 2018, https://www.wttc.org/economic- impact/country-analysis Ministry of Hotel and Tourism (2017), A review of tourism education and training providersMyanmar-Luxembourg Development Cooperation, https://tourism.gov.mm/.../HRDSAP-Strand-6-EDUCATION-AND- TRAINING-FINA.. ADB (2019). Greater Mekong Sub-region Infrastructure for inclusive Close Project, Prepared by Ministry of Culture, Sports and Tourism, Socialist Republic of Viet Nam for the and the Asian Development Bank. https://www.adb.org/projects/46293-001/main ASEAN Green Hotel Standards (2012), ASEAN National Tourism Organisation. https://www.asean. org/storage/2012/05/ASEAN-Green-Hotel-Standard

Sample output to test PDF Combine only Appendix - 1

World Travel and Tourism GDP Growth vs Economic GDPGrowth

Source of data: World travel and tourism council, 2018

Appendix - 2

Contribution to Global Travel & Tourism GDP Growth, 2018

25% 45%

12% 6% 4% 4% 4%

China USA India Turkey France Japan Source of data: World travel and tourism council, 2018

Sample output to test PDF Combine only Appendix - 3

Contribution of Travel and Tourism to GDP Contribution of Travel & Tourism to GDP % 1 Qatar 7.8 2 Myanmar 6.9 3 India 6.8 4 China 6.6 5 Azebaijan 6.4 6 Anguilla 6.3 7 Uzbekistan 6.2 8 Benin 6.1 9 Bangladesh 6.1 10 Kyrgyzstan 6.1 Source of data: World travel and tourism council, 2018

Sample output to test PDF Combine only Appendix - 4

Licensed Tour Companies No. Types of Owner 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1 Foreign Company 1 1 1 1 1 1 1 1 1 1 2 J.V Company 16 16 17 15 17 25 33 39 42 40 3 Local Company 692 574 640 743 1008 1324 1589 1906 2410 2552 Total 709 591 658 759 1026 1350 1623 1946 2453 2593

Rate of increase/ 11.34 -16.64% 15.35% 35.18% 31.58% 20.22% 19.90% 26.05% 5.71% decrease % Source: Myanmar Tourism statistics- various issues1

1Source: Myanmar Tourism statistics- various issues

Sample output to test PDF Combine only Appendix - 5

Licensed Tour Transportation No. Type 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1 Coach (26-50 Seater) 88 76 73 63 61 62 129 208 264 360

2 Mini Bus (21-25 Seater) 27 29 38 27 27 24 55 60 1194 1277

3 Van (7-20 Seater) 16 15 3 13 16 17 31 69 322 454

4 Saloon (3-5 Seater) 21 21 18 19 23 17 30 39 104 139

5 Motor Boat 52 29 34 12 22 46 24 56 33 44

6 Boat 12 16 16 17 17 19 21 30 16 14

7 Yacht 30 30 34 26 31 15 18 21 163 243

8 Hot Air Balloon 1 1 1 1 1 1 2 3 3 3

Total 247 217 217 178 198 201 310 486 2099 2534

Rate of increase/decrease -12.15% 0.00% -17.97% 11.24% 1.52% 54.23% 56.77% 331.89% 20.72%

Source: Myanmar Tourism Statistics

Sample output to test PDF Combine only Appendix – 6

Licensed Tour Guides No Type 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 . 1 English 3182 2920 2598 1931 2058 2187 2296 2349 2586 2815 2 Japanese 598 548 484 343 350 403 384 352 335 342 3 French 283 293 280 231 246 277 282 278 272 295 4 Chinese 214 203 171 125 139 132 131 123 124 146 5 Thai 122 114 108 106 108 132 138 150 163 206 6 German 217 241 235 219 230 264 268 261 261 271 7 Russian 26 37 36 35 40 64 69 66 70 77 8 Italian 38 48 44 43 48 68 68 64 63 65 9 Korean 20 22 20 21 24 29 30 26 30 46 10 Spanish * 101 101 106 110 111 110 106 106 108 11 Regional Guides * * * * * * 1070 1855 2939 3449 Total 4700 4527 4077 3160 3353 3667 4846 5630 6949 7820

Rate of increase/ -3.68% -9.94% -22.49% 6.11% 9.36% 32.15% 16.18% 23.43% 12.53% decrease * Data not available Source: Myanmar Tourism Statistics

Sample output to test PDF Combine only Appendix – 7

Licensed Hotels, Motels, and Guest Houses in Myanmar No. Particulars 2010-2011 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 1 No. of hotels, motels, and inns 1497 1714 2048 2402 2770 3088

2 No. of rooms 47624 58932 74592 91210 104562 117473 Source: Myanmar Tourism Statistics

Sample output to test PDF Combine only Appendix - 8

Foreign Investment in Hotels and Commercial Complex B.O.T Contract Completed Project Projects under construction MIC Permitted Signed Year No. of No. of No. of US$ No. of US$ (millions) US$ (millions) US$ (millions) projects projects projects (millions) projects 2008 30 772.419 5 348.500 * * * *

2009 32 862.669 5 288.500 * * * * 2010 31 855.919 5 288.500 * * * * 2011 31 855.919 5 288.500 * * * *

2012 30 828.419 5 288.500 1 300.000 * * 2013 30 828.419 6 882.020 * * 3 206.710 2014 33 1267.862 11 1054.470 * * 2 235.226 2015 34 1774.992 11 772.595 * * 3 130.793

2016 33 1749.992 11 857.545 * * 12 476.888

2017 33 1749.992 11 993.445 * * 20 1627.528 * Data not available, Source: Myanmar Tourism Statistics 2017

Sample output to test PDF Combine only Appendix - 9

Tourist Arrival in Entry Points

Source: Myanmar Tourism Statistics 2017

Sample output to test PDF Combine only Appendix - 10

Contribution of Travel and Tourism to GDP (in MMK) Date MMK (Millions) Growth Rate Change, % 2008 1,066.00 19.02%

2009 1,080.10 1.33%

2010 927.00 -14.18%

2011 1,197.40 29.17%

2012 2,046.90 70.95%

2013 2,399.80 17.24%

2014 3,598.30 49.94%

2015 5,080.30 41.18%

2016 5,715.50 12.50%

2017 6,457.10 12.97% Source: World Travel & Tourism Council, Myanmar Annual Research Key Highlights

Sample output to test PDF Combine only Appendix - 11

Trend of Tourist Expenditure and Length of Stay Year 2012 2013 2014 2015 2016 534 926 189 2122 2197 Tourist expenditures Millions Millions Million Millions Millions Average expenditures per person per day 135 145 170 171 154 (US$) Average length of stay 7 7 9 9 11 Source: Myanmar Tourism Statistics 2017

Sample output to test PDF Combine only Appendix - 12

Map of Mandalay Region

Sample output to test PDF Combine only Appendix - 13

Sources of Tourist Arrivals Year By Air By Sea By Land Tourist Arrivals 2006-2007 233453 162130 257966 653549 2010-2011 334278 125223 333237 792738 2011-2012 334278 125223 333237 792738 2012-2013 681376 159643 498423 1339442 2013-2014 924401 253644 1126572 2304617 2014-2015 1123706 245897 2073406 3443009 2015-2016 1222417 318369 2738273 4279059 The lenh2016-2017 1254536 350253 1474483 3079272 Growth Rate 437% 116% 472% 371%

Appendix - 14 List of Hotels in Mandalay No. Description Stars Location

1 RuparMandalar Resort 5 Town Centre

2 Sedona Hotel Mandalay 5 Town Centre 3 Mandalay Hill Resort 4 Town Centre 4 Hotel By the Red Canal 4 Town Centre 5 Nadi Myanmar Hotel 3 Town Centre 6 Mandalay Swan Hotel 3 Town Centre 7 Mandalay City Hotel 3 Town Centre 8 Mandalay View Inn 3 Town Centre 9 Sunrise Hotel Mandalay 2 Town Centre 10 Emerald Land Inn Hotel 2 Town Centre 11 Silver Swan Hotel 2 Town Centre 12 Silver Star Hotel 2 Town Centre

Sample output to test PDF Combine only Appendix - 15

Rooms in Hotels, Motels and Inns in Mandalay Sr. No. Year Number of Hotel Rooms 1 2006 5083 2 2007 5083 3 2008 5083 4 2009 5083 5 2010 5083 6 2011 7735 7 2012 7735 8 2013 9176 9 2014 12900 10 2015 15053 11 2016 16833 12 2017 17888

Sample output to test PDF Combine only Appendix - 16

Growth Rates of Tourist Arrivals and Beds in Mandalay Growth Rate of Total No. of Growth Rate Year Tourist Arrivals Tourist Beds of Beds Arrivals 2010-2011 792738 21% 15436 52% 2011-2012 792738 0% 15436 0% 2012-2013 1339442 69% 18318 19% 2013-2014 2304617 72% 25739 41% 2014-2015 3443009 49% 30045 17% 2015-2016 4279059 24% 33658 12% 2016-2017 3079272 -28% 35928 7%

Sample output to test PDF Combine only Appendix - 17

Hotels and Tourism Income in Mandalay

Hotels and Tourism Income in USD 2015- 2016- 2017- 2015- 2016- 2017- Month Month 2016 2017 2018 2016 2017 2018 April 488125 488030 613076 April May 432381 449646 600490 May -11% -8% -2% June 401538 398370 550177 June -7% -11% -8% July 459854 546236 544460 July 15% 37% -1% August 554247 601304 580307 August 21% 10% 7% September 666889 542083 549956 September 20% -10% -5% October 898994 997264 838826 October 35% 84% 53% November 1586486 1702201 1939054 November 76% 71% 131% December 1357344 1345922 926190 December -14% -21% -52% January 1466830 1500887 1212200 January 8% 12% 31% February 1216880 1544732 1006322 February -17% 3% -17% March 1067644 1124632 1178490 March -12% -27% 17%

Sample output to test PDF Combine only Appendix - 18

Tourism Education and Training Provided by MOHT

Student characteristics Course length No of No students Provider Location programme/s Curriculum (graduates, (weeks/hours) intakes per intake matriculants, workers) Summit Tailor made and English Graduates, Mandalay Mandalay ready-made 4 months 5, 7 10, 20 language matriculants, staff TXT courses Graduates, Tour guide 3 months 2 10, 15 matriculants, staff Sharing (by?) Mandalay experienced Philanthropic Hotel staff international Graduates, Mandalay 3 months 2 80 Hotel training standard matriculants, staff Training employees and managers Mandalay Tourist Skilled tourist Graduates and Guide ASEAN Toolboxes 10 + 8 weeks Mandalay guide training 2 20 licensed tour Vocational with internship on the job programme guides Training Hub (MTGVTH)

Sample output to test PDF Combine only Student characteristics Course length No of No students Provider Location programme/s Curriculum (graduates, (weeks/hours) intakes per intake matriculants, workers) Graduates, Hotel ASEAN level MHVT Mandalay 10 Weeks 15 - 20 15 - 20 matriculants, Operation syllabus workers Graduates, As needed for Hotel Mandalay Own developed on job staff matriculants, the job ordinary level Myanmar Hotel staff, Hospitality F/O, F&B, Customized from 1 month/100 university Professional Mandalay 4 150 H/K ASEAN Toolbox hrs students/ Association graduates (MHPA) MOHT developed, Matriculated with Mandalar Mandalay BA Tourism upgraded by 4 year 4 70 moderate/high Colle LuxDev marks. Diploma Mandalay 9 months 4 70 Graduate Tourism

Sample output to test PDF Combine only Student No characteristics Course length No of students Provider Location programme/s Curriculum (graduates, (weeks/hours) intakes per matriculants, intake workers) Hotel and Mandalay Vocational Basic Hotel Management, Vocational training Int'l Bakery & Pastry course, Training Int'l cookery course, Int'l School hotel operations course, Int'l Mandalay front office course, Int'l food and beverage service course Int'l Housekeeping operations course travel Agency course Basic Tour operation training Basic tour guide training Tour guide refresher training Int'l Hotel and tourism English course Basic food safety & hygiene course Management training course Familiarization training for national skill level assessment

Mandalay Mandalay Philanthropic Hotel Philanthropic Training School Hotel Mandalay Cooking course, Front office Training course, F&B production School course, English for hospitality

Front Office 74 Mandalay Training

Sample output to test PDF Combine only Appendix - 19

Mandalay Inbound and Outbound Tourists in Numbers

2015-2016 2016-2017 2017-2018 No Month Inbound Outbound Income US $ Inbound Outbound Income US $ Inbound Outbound Income US $ 1 April 36917 14274 4545.58 488125 46551 20262 7044.51 488030 50630 17496 8271.15 613076 2 May 38244 16184 4853.91 432381 43934 21080 6683.49 449646 49832 27076 8227.60 600490 3 June 36290 13621 4662.62 401538 39454 17908 5696.34 398370 44122 27365 7312.31 550177 4 July 38243 17048 4868.54 459854 43329 13748 6528.20 546236 47603 32432 7659.69 544460 5 Augest 37763 19020 5030.69 554247 42414 26228 6324.83 601304 47163 33309 7860.28 580307 6 September 38535 18392 4841.13 666889 40006 23131 5914.00 542083 46309 29672 7694.25 549956 7 Ocotober 42802 25438 5830.89 898994 45521 34207 7569.50 997264 58791 42746 10939.5 838826 8 November 36784 40719 5806.97 1586486 43998 52375 7809.55 1702201 53616 61067 10265.1 1939054 9 December 45238 41355 6928.79 1357344 48402 47945 8293.70 1345922 56963 48496 9309.44 926190 10 January 41090 40533 6879.92 1466830 43270 53051 8061.13 1500887 58072 56793 9671.41 1212200 11 February 40500 39150 6542.46 1216880 42542 55482 8050.85 1544732 47127 45747 8855.60 1006322 12 March 42091 38384 6554.98 1067644 48533 45592 8158.81 1124632 57428 42152 9252.51 1178490 Total 474497 324118 67346.48 10597212 527954 411009 86134.91 11241307 617656 464351 105318.9 10539548 44% 119% 4% 125% 16% 130% 13% 141% 12% 92% Source: Mandalay Hoteliers Association 2019

Sample output to test PDF Combine only Appendix - 20 Mandalay Hotels, Motels and Rooms in Numbers Hotels Motels Total No. of Rooms of No Township Rooms of Rooms of No. of Hotel No. of Motel Hotel, and Hotel, and Hotel Motel Motel Motel 1 Chanayethazan 101 4661 17 363 118 5024 2 Aungmyethazan 28 1332 10 224 38 1556 3 MahaAungmye Township 30 1517 5 56 35 1573 4 13 567 7 91 20 658 5 5 204 2 33 7 237 6 PhaTainGyi 1 25 1 25 7 Amaya Puya 0 Mandalay 178 8306 41 767 219 9073

Sample output to test PDF Combine only Hotels Motels Total No. of Rooms of No Township Rooms of Rooms of No. of Hotel No. of Motel Hotel, and Hotel, and Hotel Motel Motel Motel 1 Pyinoolwin 44 1192 12 180 56 1372 2 Mogok Township 3 120 3 120 47 1312 12 180 59 1492

3 Kyaukse 4 139 1 24 5 163 4 Sintgaing Township 2 41 2 41 4 139 3 65 7 204 5 Myittha 7 228 4 70 12 298 6 Thazi 2 26 2 26 7 228 6 96 13 324 7 Myingyan 3 96 1 12 4 108 3 96 1 12 4 108 8 Yamethin 1 31 1 31 9 Pyawbwe 2 33 2 33 3 64 3 64 10 Bagan/ Nyaung-U 53 2515 32 504 85 3019 11 8 202 3 34 11 236 Nyaung-U Township 61 2717 35 538 96 3255 Mandalay Division 300 12798 101 1722 402 14520

Sample output to test PDF Combine only Appendix - 21 The Growth Rates of Tourist Arrivals and Rooms in Mandalay Total Room Tourist Tourist Arrivals Total Rooms Growth Arrivals Growth Rate Rate 2010-2011 792738 21% 7735 52% 2011-2012 792738 0% 7735 0% 2012-2013 1339442 69% 9176 19% 2013-2014 2304617 72% 12900 41% 2014-2015 3443009 49% 15053 17% 2015-2016 4279059 24% 16833 12% 2016-2017 3079272 -28% 17888 6%

Appendix - 22

The Growth Rates of Tourist Arrivals and Beds in Mandalay

Tourist Growth Rate of Total No. of Growth Rate Year Arrivals Tourist Arrivals Beds of Beds

2010-2011 792738 21% 15436 52% 2011-2012 792738 0% 15436 0% 2012-2013 1339442 69% 18318 19% 2013-2014 2304617 72% 25739 41% 2014-2015 3443009 49% 30045 17% 2015-2016 4279059 24% 33658 12% 2016-2017 3079272 -28% 35928 7%

Sample output to test PDF Combine only