A Study of Factors Affecting Tourism Development and Economic Development in Yangon, Myanmar

A STUDY OF FACTORS AFFECTING TOURISM DEVELOPMENT AND ECONOMIC DEVELOPMENT IN YANGON, MYANMAR

MR. TUN WIN THAN

ID: 6117190028

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF SINBUSINESS ADMINISTRATION (INTERNATIONAL PROGRAM) GRADUATE SCHOOL OF BUSINESS, SIAM UNIVERSITY, BANGKOK, THAILAND

2019

Abstract

Research Title: A Study of Factors AffectingTourism Development and Economic Development in Yangon, Myanmar Researcher: Mr. Tun Win Than Student ID: 6117190028 Degree: Master of Business Administration (InternationalProgram) Major: Hotel and Tourism Management

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(Dr.Tanakom Limsarun)

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Myanmar has emerged as a popular tourist destination and experienced rapid growth in tourism sector after its political reform. However, due to some factors affectingits tourism sectors, the growth has declined 10 Shme e.tlenl. This ,\'11,dy aimed to investigate the facUJts a.ffel'ling lhuti.it'm development and economic development in Yangon, Myanmar. Documentaryresearch format has been used for this study focusing on four.factors: 1) Regional confhcts, instabilities or civil wars in the regions o_fMyanmar, 2) Transportation in Myanmar 3) Accommodation in Myanmar, 4) Human resource for the tourism industry in Myanmar. All of these factors have been found to affect tourism and economic development in Yangon, Myanmar. The researcher suggests that the government and the related stakeholders should end civil wars and other conflicts to secure peace, improve infrastructure, including roads, railways and water ways for transportation and build hotels for better accommodations and enhance human resources for the tourism industry. This study is contributed especially to the government of Myanmar, researchers and other related stakeholders.

Keywords: Yangon, Economic Development, Tourism Development

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ACKNOWLEDGEMENT

First of all, I would like to express my special thanks to my father U Maung Saw Nyut and my late mother Daw Hla Hla Yai for giving me a golden life, letting me grow up with principles of moral ethics and encouraging me not to surrender any difficulty in life.

Secondly, it is my best and sincere thanks to my advisor and teacher Dr.Tanakorn Limsarun. Research is my valued subject as well as my lifelong process. So, that I had opportunity to learn research methodology with him is proudly valuable to me. In addition, without his advice, this research will not be complete. Therefore, my best and sincere thanks is to my advisor and teacher Dr.Tanakorn Limsarun

Here, it is impossible to leave my Sayataw Baddanta Aggavamsa (Mahasaddhamma Jotikadaja), Khemavamsa Monastery, Bauk Thee Su, Sittwe, Rakhine (Arakan) state, Myanmar; my Sayataw Baddanta Dhammasami(Dhammacariya), Pin Wa monastery, Pyi Daw Thar, Sittwe, Rakhine (Arakan) state, Myanmar; my Sayataw Baddanta Sobhita, Tow Ra Satipattham Gu Monastery, Rwar Thar Yar, Sittwe, Rakhine (Arakan) state, Myanmar; my Sayataw Baddanta Ukkansa (Sasanadaja Dhammacariya), Tejacakki Vipassana Kammatham Monastery, 8-mile, Mayangone Township, Yangon and my Sayataw Baddanta Jotika (Sasanadaja Dhammacariya), Jetawan Aung San Pariyatti Sar Than Teik, South-Okkalapa Township, Yangon to say thanks for their moral and spiritual teaching and other supporting. Thank all my Sayataws.

Thirdly, I would like to express my special acknowledgement to my brother-in-law Ko Hla Kyaw Maung and my elder sister Ma U San Yei for their unwavering support in my every need. It is also my sincere thanks to my younger sister Ma San San Aye for looking after Father and late Mother while she was alive on behalf of me when I am away from home.

Finally, my heartfelt thanks is to each and every former and current members of Arakan Student Monks Association in Thailand (A.S.M.A), especially my Sayataw ASHIN PYINNYARSARA BODHI (Sasanadaja Dhammacariya, M.A (Buddhist Studies)), Patron of A.S.M.A; my Sayataw Panna Linkara (Sasanadaja Dhammacariya, B.A (Buddhist Studies), M.B.A (HR)), Patron of A.S.M.A; my Sayataw Viyata (B.A, (Buddhist Studies), M.B.S (Buddhist Studies), M.B.A (HR)), current President of A.S.M.A and my Sayataw Revata (B.A (Eng.), M.B.A (Hotel & Tourism Mgmt.), former secretary of A.S.M.A. for their brotherly helps to fulfill my education in Thailand. Thank all members of A.S.M.A.

No Content Page . a. Acknowledgement I b. Abstract II 1. Introduction 1 1.1.Research Background 1 1.2.Problem to be investigated 3 1.3.Objective of the Study 4 1.4. Scope of the Study 4 1.5.Significance of the Study 4 2. .Literature Review 5 2.1.Yangon 5 2.2.Tourism development 6 2.3.Economic Development 8 3. Past Researches 9 4. Findings of the Study 11 Figure 1 11 Explanation of Figure 1 11 5. Conclusion and recommendations 12 6. Research Limitations and Suggestion for Future Studies 15 - References 15

Introduction

Myanmar (Formerly Burma) is a Southeast Asian nation. It is bounded to the west by India, Bangladesh, the Bay of Bengal and the Andaman Sea and to the East by China, Laos and Thailand (Khin Zaw, Crow & Myo Aung Myanmar, 2017) and covers an area of about 675,000 Square Kilometers (over 260,000 Square miles) (Win Ko Ko, 2016).

Yangon (Formerly Rangoon) is the largest commercial city of Myanmar, and it is one of the places where tourists mostly arrive at (Janeya, 2017 & Eurocham Myanmar, 2018). Although the government moved to Nay Pyi Taw in November 2015, Yangon is still the country’s largest and most economically important city (Huijun, Leng & Yean, 2016).

Tourism is a significant driver of economic and social development. It stimulates Gross Domestic Product (GDP) growth in host countries, contributes sustainably to government Tax revenues and results in improvements in necessary infrastructures (World Bank Group, 2017 & Athanasopoulou, 2013). Therefore, tourism is one of the most important economic activities in the world today (MoH, 2017).

1.1. Research Background

Tourism, nowadays, is one of the largest, fastest growing and dynamic economic sectors attracting economic activities (Meyer, & Meyer, (2015). As one of the world largest economic sectors, Travel & tourism creates jobs, drives exports, generates prosperity across the world. In the analysis of the global economic impact of travel & tourism, the sectors show to account for 10.14% global GDP and 313 million jobs or 9.9% of the total employment, in 2017(WTTC, 2018). The More the tourist travel to a country, the more job opportunity and income ( Saechau, Ei The Nge Nge, Phrombun, Han Min Htun &Mouton, 2015). For developing countries, it is used as a tool to create new economic activities, to promote economic development and to alleviate poverty. (Meyer,.& Meyer,. 2015). 2

For example, in Thailand, it has put a lot of efforts on promoting its leisure travel and business travel and is becoming more and more popular and is one of the top five tourist destinations in Asia ( Saechau, Ei The Nge Nge, Thanaphun, Han Min Htun & Mouton, 2015). According to the Public Relation Department (Thailand), from January to October 2018; 31.35 millions of international tourists arrive in Thailand, accounting for an increase of 7.84 percent of over the same period of 2017 and during the period, 1.63 trillion baht in tourism revenue, up by 9.98 percent, is generated (PRD Thailand, 2018). Therefore, tourism is one of the largest, fastest growing and dynamic economic sectors attracting economic activities and tourism development is a must to carry out for especially developing countries.

Among the developing countries, Myanmar is also one like Thailand. Myanmar has the potential to attract 26 million tourists in a year just as Thailand did in 2013. In 2010, Myanmar had the lowest number of tourist arrivals of any association of Southeast Asian Nations (ASIAN) country at just 310,000 compared to 1.2 million tourists in Laos and 15 million in Thailand. However, since then after political reforms in Myanmar, it has emerged as a hot tourist destination, experiencing rapid growth in tourism demand (Pompa & Bissinger, 2014). Myanmar possesses great tourist potential and many attractions to be made further accessible in the future (MoH, 2017). In accordance with the World Travel and Tourism Council, Total GDP contributed to Myanmar by Travel and Tourism was MMK 6,468.9bn in 2017 (6.6% of GDP), is expected to grow by 5.4% to MMK 6,815.2bn (6.5% of GDP) in 2018 and forecast to rise by 7.0% pa to MMK13,371.3bn by 2028 (7.0% of GDP) (WTTC, 2018).

Yangon (Formerly Rangoon) is the largest and the old capital city of Myanmar with a population of over seven million (Pwc Myanmar, 2018). On March 27th 2006, the new capital city was christened Nay Pyi Taw, but Yangon (the old capital city) is still commercial city of Myanmar (Nan Pin Tip, 2016 & Rhoden, 2014) and home to the main gate of foreign visitors, with its busy markets, numerous parks and lakes and the glided Shwedagon Pagoda in which the relics of the Lord Buddha are shrined and dates back to the 6th century (Janeya, 2017). According to Myanmar Ministry of Hotel and Tourism; 3,443,133 visitors arrived in Myanmar in 2017; among them; 1,146,069 visitors came in Myanmar through Yangon Entry 3

Point; out of 1,146,069 visitors who came in Myanmar through Yangon Entry Point, 424,332 are tourists; 196,644 business travelers and 525,093 others (MoH, 2017).

Furthermore, today, tourism is a multi-dollar industry and it is usually one of the top three industries throughout the world, regardless of the country's level of development (Bojanic & Lo, 2015). For example, Cambodia, one of the ASIAN developing countries gained total GDP of KHR29,131.2bn from Tourism in 2017 (WTTC, 2018) and ranked No.15 in the list of 20 countries most reliable on tourism(Smith,2018).

1.2 Problem to be investigated

Travel and tourism supported total GDP of USD 8272.3bn to the world in 2017 (WTTC, 2018). Therefore, today, tourism is a multi-dollar industry and it is usually one of the top three industries throughout the world, regardless of the country's level of development (Bojanic & Lo, 2015). For example, Cambodia, one of the ASIAN developing countries gained total GDP of KHR29,131.2bn from Tourism in 2017 (WTTC, 2018) and ranked No.15 in the list of 20 countries most reliable on tourism(Smith,2018).

In line with the facts mentioned above, tourism is one of the industries which play a vital role in the development (Bhat, Firdous & Ah Tali, 2018). In Myanmar, there is a high potential for tourism development with its diversity of landscapes, cultural sites, and ethnicities but currently, some factors affecting tourism development are also there (Eurocham Myanmar, 2018). For example, tourism development sector has not been discussed in the parliament (Win Ko Ko,2016), there is lack of tourism information sharing online, there are not sound banking systems (BIF,2016), there are poor infrastructure, limited funding(May Thet Hnin, 2017), the lack of promotion and marketing strategy, a lack of capacity and coordination throughout the public and private sector (Eurocham Myanmar,2018), need of more local involvement (Ei Thandar Tun, 2015), double taxation, the lack of vocational training and education for tourism, systematic capacity building and the inability to manage existing and potential tourist destinations (Ei Ei Thu, 2018), conflicts that make tourism growth to decline (May Thet Hnin, 2017) and shortage of Yangon accommodation and prices are a big challenge to visitors (Janeya,2017). 4

1.3 Objective of the Study

The objective of this research is to identify the most possible factors affecting tourist satisfaction in and attraction to Yangon. Tourist attraction is the raison d’etre of tourism (Frempong, Dayour & Bondzi-Simpson, 2015) and tourist satisfaction is the pulling power to attract (Agrawal, 2016). Therefore, tourism development in Yangon is related to tourist satisfaction in and attraction to Yangon, and to satisfy tourists in Yangon and to attract tourists to Yangon, there may be some issues or barriers which need to be addressed for the tourism development and economic development in Yangon, Myanmar. Out of these issues or barriers, the researcher will investigate and reveal some most potential issues or barriers in order that the government of Myanmar, researchers and other stakeholders can see and solve them, and contribute to the tourism development and economic development in Yangon, Myanmar.

1.4 Scope of the Study

Documentary research format is used for conducting this study, over 60 papers already published around the year 2014 to 2019 retrieved from Siam Library, Research gate, Wiley online and many other websites are reviewed and over 50 reliable papers were referenced in this study. Also, according to the research format or to be a solid research, literature review, findings of the Study and applicable recommendation are built into this study.

1.6 Significance of the Study

It is significant that this research will be contributed to the government of Myanmar, researchers and other related stakeholders. Tourism development plays a vital role in the economic development of many countries seeing the fact that total contribution of travel and tourism to World GDP was USD 8,272.3bn (10.4% of world GDP) in 2017, neighboring countries of Myanmar, Thailand received THB 3,229.8bn (21.2% of country GDB), India 5 received NIR1,5239.6bn (9.4% of country GDP), China received CNY9,119.7bn (11.0% of country GDP), Laos received LAK16,764.7bn in 2017 (13.7%of country GDP),Bangladesh received BDT850.7bn (4.3% of country GDP) and Myanmar received MMK6,468.9bn (6.6% of Country GDP) respectively from the tourism industry in 2017 (WTTC, 2018).

This research will explore some most possible factors affecting tourism development which plays a vital role in economic development in Yangon, Myanmar, and applicable recommendations for the factors will be included in this research. Therefore, this research is significant to be contributed to the government of Myanmar, researchers and other related stakeholders.

2. Literature Review

2.1 Yangon

Yangon, formerly known as Rangoon, is the largest city in Myanmar, formerly known as Burma. (Sritarapipat &Takeuchi,2017). It is the city with 736,0703population (91.0 is Buddhists, 3.2 Christians, 4.7 Muslims, 0.5 Hindus, 512Animists, 0.1 other religions, and 1923 no-religions) (Department of Population, Ministry of labour, Immigration and Population, Myanmar, 2016) and forms four districts: northern district, southern districts, eastern district and western district. Eight townships are included in the northern district; fourteen townships in the eastern district; thirteen townships in the western districts and ten townships in the southern district (UNDP Myanmar, 2015).

Yangon has a large number of colonial buildings which has now become offices or a place to stay. The commercial core is centered on the Sule Pagoda, which is reputed to be over 2,000 years old. The city is also home to the glided Shwedagon Pagoda, Myanmar’s most sacred Buddhist pagoda, constructed more than 2600 years ago (Oak Kar Pain Soe & Romsaitong, 2018).

Historically to say in brief, Yangon’s mythology begins with the tale of two merchant brothers, Taphussa and Bhallika from the legendary land of Ukkala. When the two merchant 6 brothers traveled to India with five hundred carts of their goods to sell, they bumped into and paid respect to the Gotama Buddha. The Gotama Buddha also gave them his eight hair relics. When they arrived back at their country Ukkala, they enshrined the eight hair relics on a special hill called Singuttara (Rhoden, 2014), where is about the center of a small fishing village called Dagon dominated by the Mon in the early 11th century (Nang Pin Tip, 2016). Dagon is called “Tiggun” by the Mon, “Tergu” by the Karens and “Dagon” by Burmese in their own pronunciation. But, Alaung Phaya alias U Aung Zeya changed “Dagon” to Yangon

(Burmese ရ倹ကုန္) meaning “ all enemies are gone” after the conquest of Dagon in 1754 (Khin

Maung Saw, 2016).

Now, Yangon is the country's economic center and reliable for 23% of the country's GDP over the past five years. The headquarters of major banks, financial institutions, the newly established stock exchange, the main airport and seaport in Myanmar are there. Moreover, Yangon has over 360 hotels, motels, and inns providing 18200 rooms of which around 4500 units are upper scales hotels and the average daily rate of upper scale hotel was USD 112 at the end of 2017, a decline from USD 150 in 2015. The average daily rate for midscale hotels can range from USD 50-70 depending on availability and the season (PWC Myanmar, 2018). For most tourists, Yangon is the first city that they will land by plane (Oak Kar Pain Soe & Romsaitong, 2018).

2.2 Tourism development

The Tourism Organization defines Tourists as people who travel to and stay in place outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited (Parvez & Shakil, 2016) and tourism is defined as temporary, short term movement of people to the destinations outside their places of residence or work and activities during their stay at these destinations include movements for all purposes as well as day-visits or excursions (Aruljothi & Ramaswamy, 2014) 7

According to Lwoga (2011), the ancient travel period seems to have begun since the period of human movement from one place to another occurred since the beginning of humankind, about 8 to 5 million BC and early tourism period seems to have emerged in 14 to 16 centuries AD (Lwoga, 2011). Tourism that has started in that period is seen to have developed a lot and can forecast to develop more and more year by year in view of that travel and tourism total contribution of GDP to the world was USD 7,170.3bn (9.8% of world GDP) in 2015; USD7,613.3(10.2% of world GDP) in 2016 and USD8,272.3 (10.4% of World GDP) in 2017 increasingly year by year (WTTC, 2016, 2017& 2018).

In Myanmar, though tourism was introduced to it since the period of high colonialism of Southeast Asia (1870-1940) (Nang Pin Tip, 2016), any concrete tourism development was not seen for decades because her government military junta closed her from outside world from 1962 to 1988 by using a severe visa policy and the political instability and turmoil inside Myanmar occurred from 1989 to 2010. However, after its political reform in 2010, tourism development can be seen faster than before. According to the statistics of Myanmar Ministry of Hotel and Tourism, total yearly tourist arrivals from 2008 to 2015 are: 731,230 in 2008; 762,547 in 2009; 791505 in 2010; 816369 in 2011; 1058995 in 2012; 2044307 in 2013; 3081412 in 2014 and 4681020 in 2015. So, the year 2010 to 2015 tourist arivals can be said to be the boom of tourism in Myanmar (Michalon, 2017 & MoH, 2010 & 2015).

However, according to the Ministry of Hotel and Tourism of Myanmar, tourism sector declined 38 percent in financial year 2015-2016 (MoH, 2016) due to the conflicts, instabilities or civil wars in the regions and states of Myanmar (Ei Ei Thu, 2018, Kyaw Ye Lynn, 2017, Khine Kyaw, 2018, World Bank Group, 2018, Moe Myint, 2018 & May Thet Hnin, 2017). Moreover, Yangon, the commercial city, is the main gateway to Myanmar (Janeya, 2017) and according to Janeya (2017), BIF (Myanmar) Burma, (2016), Ei Ei Thu (2018), Nesbitt (2016), Khine Kyaw (2015), Sithu Aung Myint, 2018 and Phe Nyi (2015), accommodation in Myanmar is a major challenge for tourist satisfaction and tourism development in and around Yangon. In addition, according to BIF Burma (Myanmar),2016, Janeya, 2017, Phe Nyi,2015, Deboonme & Khine Kyaw, 2015, Sithu Aung Myint, 2018, transportation in Myanmar is one of the main impediments to tourism development and economic development in Yangon, Myanmar. Furthermore, according to BIF Burma 8

(Myanmar) (2016), Khine Kyaw, (2015), Ei Ei Thu, (2018), May Thet Hnin (2017) and Promchertchoo (2016), human resource for the industry is in a serious need with growth of tourism.

There are not only many strengths and opportunities for further tourism development of Yangon, Myanmar but also many weakness and threats for the destructiveness of tourism development of Yangon. (Cros, 2016). If the government can properly manage the city's heritage assets, Yangon can become a major destination in its own right (Thant Myint U, Moe Moe Lwin, Mann & Chan, 2016).

2.3 Economic Development

The definition of economic development is “the process by which a community creates, retains, and reinvests wealth and improves the quality of life”. Economic development examines more factors than economic wealth and growth, and focuses more on the development of people than of things. Economic wealth is measured as the gross domestic product, the total value of goods and services produced by a country in a year, currently usually in US$ (Davison, 2015).

World economic situation has been seen in the negative situation of a series of global broad-based economic crisis, due to global financial crisis of 2008-2009, the European sovereign debt crisis of 2010- 2012 and the global commodity price realignments of 2014- 2016. However, it has been seen to be going toward a positive situation and world economic growth is expected to remain steady at 3.0 percent 2018 and 2019 as the crises subsided in 2017 (UN, 2018).

In Myanmar, after economic reform in 2011, it invited more Foreign Direct Investment (FDI), changed trade policy, set monetary and finance policy and conducted national workshops in various economic sectors (Moe Myint Kyaw, 2014). Therefore, Myanmar economy achieved high growth of real GDP that exceeded 7% during the fiscal years 2012 to 2014 for the first time since the reform in 2011. After that, it declined to 5.9% in the fiscal year 2016 due to a decrease in exports and procedural delays after the establishment of the 9 new administration. However, it expanded to 6.7% in the fiscal year 2017 and is expected to increase by 7% again in the fiscal year 2018 and after (Takeyama, 2018).

Moreover, some economic developments in 2017/18 are that rice exports were high, gas exports were strong, garments accessed to new markets, the kyat and foreign exchange reverse levels both strengthened slightly and so on (World Bank Gouup, 2018).

Furthermore, particularly In Yangon, the former capital and the commercial hub of Myanmar, over the past six years, total investment into Yangon was USD 25.84billions, accounting for almost half the total approved investments of USD 52.88 billion in the country. And, totally out of 2,233 enterprises in Myanmar, 64% are in Yangon. In 2017, Yangon Bus System (YBS) and Water Bus service were launched and many economic sectors such as infrastructure, capital market, Banking, Real estate, Insurance, Finance company and tourism are also seen to be changed. Over the past five years, Yangon’s GDP grew at between 10% and 8.5% (PWC Myanmar, 2018).

3. Past Researches

There may be many past researches related to this topic but just some of the freshest and possible related researches conducted by senior scholars would like to be mentioned here.

Those are: 1) The first past research related to this topic is titled "A study of the development of the tourism sector in Yangon, Myanmar" conducted by Ven. Janeya (2017). What this research is different from mine is that this research was done in a quantitative research method and in this research, the researcher Ven. Janeya concludes that the shortage of Yangon accommodation and its high prices are big challenges. As most of the local airline prices are high, the visitors like to use the buses and other transportations instead. A good system of information and technology is needed to give fully functions to visitors. Moreover, the research recommended transport infrastructure, lodging facilities, human resource, and tourist security at tourist destinations of Yangon need to be developed and hotel fees are also the ones to be decreased from the peak prices (Janeya, 2017). 10

2) The second past research related to this topic is titled “The Analysis of International Tourism in Yangon Region of Myanmar” conducted by Mr. Phe Nyi (2015). This research was also conducted in quantitative method and the researcher concluded that Yangon tourism industry had to focus on improving better transport, cleanliness, easy information, service facilities, modern infrastructure, services and transportation, safety and security and recommendation for policies. Moreover, the researcher recommends that Yangon tourism industry need to improve more important factors-- attractions, services & transportations & safety and security than the recommendation for policies (Phe Nyi,2015).

3) The third past research related to this topic is titled “A Study of Economics, Political and Environment factors Affecting tourism Development in Myanmar” conducted by Sai Woon Hein (2017). This research was conducted in a review of the previous paper related to the topic and in the quantitative method. In this research, the researcher concluded and recommended that infrastructure, roads, transportation system, improvement in Civil war conditions, the establishment of ecotourism and biodiversity need to be improved (Sai Woon Hein, 2017).

4. Findings of the Study

Figure 1

1) Conflicts, Civil Wars or

Instabilities in the Regions of Myanmar 2) Accommodation in

Myanmar (Ei Ei Thu, 2017), May Thet Hnin, 2017) (Khine Kyaw, 2018), Kyaw Ye Lyn, 2017), (BIF Burma (Myanmar),2016), (Theingi Win Tin, 2019) (World Bank (Ei Ei Thu, 2018), (Janeya, Group, 2018) (Moe Myint, 2018) 2017), (Phe Nyi,2015), (Nesbitt 2016) (Deboonme & Khine Kyaw, 2015), (Sithu Tourism Development Economic Developmentin Aung Myint, 2018) in Yangon Yangon

(Wiriyapong, 2015) WTTC (2018), WTTC (2018), Eurocham Eurocham Myanmar, Myanmar, (2018), BIF (2018), BIF Burma Burma (Myanmar), 3) Transportation in (Myanmar), (2016), (2016), Nesbitt, (2016) Myanmar Nesbitt, (2016) (BIF Burma (Myanmar),2016), (Janeya, 2017), (Phe 4) Human Resource for the tourism

Nyi,2015), (Deboonme & industry in Myanmar Khine Kyaw, 2015), (Sithu Aung Myint, 2018) (BIF Burma (Myanmar),2016), (Janeya, (Wiriyapong, 2015) 2017) (Ei Ei Thu, 2018) (May Thet Hnin, 2017) (Promchertchoo, 2016) (Deboonme & Khine Kyaw, 2015) (Wiriyapong, 2015

Explanation of Figure 1

First of all, in reference with World travel and tourism council, (2018), Eurocham Myanmar, (2018) & BIF Burma (Myanmar), (2016) and Nesbitt, (2016), tourism development is, no doubt, contributes to economic development in Yangon, Myanmar. 12

After reviewing the papers, the four most possible factors that currently affect tourism development and economic development in Yangon, Myanmar are found in this study.

The first of those factors is conflicts, civil wars or instabilities in the regions of Myanmar in reference with Ei Ei Thu, (2017), May Thet Hnin, (2017) Khine Kyaw, (2018), Kyaw Ye Lyn, (2017), (Theingi Win Tin, (2019) and World Bank Group, (2018).

The second of those factors is accommodation in Myanmar in reference with BIF Burma (Myanmar), (2016), Ei Ei Thu, (2017), Janeya, (2017), Phe Nyi,(2015), Nesbitt (2016), Sithu Aung Myint, 2018 and Deboonme & Khine Kyaw, (2015).

The third of those factors is Transportation in Myanmar in reference with BIF Burma (Myanmar), 2016, Janeya, 2017, Phe Nyi, 2015, Deboonme & Khine Kyaw, 2015, and Sithu Aung Myint, 2018.

The fourth of those factors is human Resource for the tourism industry in Myanmar in reference with BIF Burma (Myanmar), (2016), Janeya, (2017), Ei Ei Thu, (2017) May Thet Hnin, (2017), Promchertchoo, (2016) andDeboonme & Khine Kyaw, (2015).

5. Conclusion and recommendations

Tourism had become a major driving force in the economy of Myanmar (Nesbitt, 2016). However, tourism sector declined 38 percent in financial year 2015-2016 (MoH, 2016) due to the conflicts, instability and civil war in the regions and states of Myanmar, especially in Rakhine state according to the references. Myanmar's tourism development depends much on internal peace (Theingi Win Tin, 2019). So, conflicts, civil wars and instabilities in the regions of Myanmar are the first factor that affects tourism development and economic development in Yangon, Myanmar. Peace and tourism is intertwined. Tourism is for peace (Ei Ei Thu, 2017).Myanmar needs peace in order for it to achieve sustainable development (Presse, 2016). The conflicts need to solved one way to another to become one united country (Oak Kar Pain Soe & Romsaitong, 2018). Therefore, the researcher’s recommendation to the government of Myanmar (GOM) and the related stakeholders is that they should put more effort on ending civil wars and other conflicts and on achieving 13 national reconciliation and peace nationwide. The tourism industry hopes the government makes good its promise to really work hard to achieve peace not only in the northern Rakhine State but throughout the country (Ei Ei Thu, 2017).

Moreover, the decline in tourist arrivals in Myanmar is not only due to conflicts, instability and civil war in the regions and states of Myanmar, especially in Rakhine state, but also due to many other factors including the limited amount of budget accommodation (Sithu Aung Myint, 2018), For example, most reliable hotels in Yangon are pricy four and five star hotels, there is still a lack of credible and affordable guesthouses or hostel options available for budget tourists, (Ei Ei Thu, 2018). In 2015, as of September, Myanmar had 48,425 hotels and guestrooms and only 30 per cent of the rooms met international standards (Deboonme & Khine Kyaw, 2015). Moreover, with the rapid influx of tourists to Myanmar in recent years, a strain has been put on supporting infrastructure such as airport capacity (Nesbitt, 2016). This is the second factor that affects tourism development and economic development in Yangon, Myanmar according to the references. So, Myanmar’ tourism industry needs to improve the standard of accommodation and Hotel fees also need to decrease from the peak prices (Janeya, 2017). There should also be cheaper hotels and guesthouses and small and medium enterprises should be encouraged to build cheaper hotels and guesthouses to accommodate budget tourists (Sithu Aung Myint, 2018)

The main reasons of the decline in tourist arrivals in Myanmar are also the low number of international carriers serving Myanmar compared to other regional destinations, the high cost of domestic air travel for foreigners because of discriminatory pricing (Sithu Aung Myint, 2018). With no high competition, Yangon’s local hotel and airlines are double priced than Thailand and other neighboring ASIAN countries (Janeya, 2017). Growing threat is also seen in terms of bottlenecks in traffic in big cities as the economy expands quickly (Wiriyapong, 2015). This is the third factor that affects tourism development and economic development in Yangon, Myanmar according to the references. So, government of Myanmar or related stakeholders must make Yangon to adapt faster, particularly in terms of transport (Wiriyapong, 2015). Yangon’s local train MRT needs to be upgraded and road system to easily access. Myanmar’ tourism industry needs to improve the standard of transportation (Janeya, 2017). The government of Myanmar (GOM) and the related stakeholders should 14 improve road, rail and water transport as a key strategy to boost tourism (Ei Ei Thu, 2018) and the infrastructure such as road and hotels should be built (Oak Kar Pain Soe & Romsaitong, 2018).

Furthermore, tourism is extremely labour intensive and a significant source of employment (Aynalem, Birhanu &Tesefay, 2016). In Myanmar, travel and tourism generated 570,000 jobs directly in 2017 (2.5% of total employment) and this was forecast to grow by 2.2% in 2018 to 582,500 (2.6% of total employment (WTTC, 2018). However, as tourism in Myanmar grows rapidly, the industry is facing a major challenge—the lack of skilled workforce in all destinations (BIF Burma (Myanmar) 2016). The biggest challenge for Myanmar tourism in the coming years lies in the supply and quality of human capital to ensure long-term stability (Wiriyapong, 2015). This is the fourth factor that affects tourism development and economic development in Yangon, Myanmar according to the references. The industry needs a proper human resource development strategy, inland and overseas. This begs immediate improvement or the country would face serious bottlenecks to further developing the industry (Deboonme & Khine Kyaw, 2015). Myanmar tourism Master Plan recognizes the need to invest in human resource development and has set it as one of its strategic priority programs (BIF Burma (Myanmar) 2016) and few training centers for the locals to cater for the demand are found. A huge amount of manpower is required but demand and supply are imbalanced (Promchertchoo, 2016). There is a lack of quality hospitality education in Myanmar while many hotels and tourist facilities offer sub-par services. Now is the time to establish university courses and training schools as more skills, including English proficiency, and a more hospitality-oriented mindset among staff are desperately needed (Wiriyapong, 2015). The tourism sector is the most promising business in Myanmar. GOM and the related stakeholders should act more aggressively in the development of training centers for the people in this highly-demanded employment sector (Promchertchoo, 2016). To analysis the cause of the decline, the authority needs to monitor for the further development of the tourism market. It needs to develop transport infrastructure, lodging facilities, human resource and tourist security at destinations of Yangon (Janeya, 2017).

6. Research Limitations and Suggestion for Future Studies

In conducting this research, the researcher confronted many limitations. The first one is that the researcher could not find the specific data of specific regions in Myanmar because the government is lack of releasing enough information. For example, if the researcher needed the particular data of Rakhine state about how many tourists arrived there in 2018, he could not find it. The second one is that apart from the fourth factors which the researcher pointed out as the factors most possibly affecting tourism development and economic development in Yangon,Myanmar though there may be many other factors, the researcher could not study these factors and the affecting raking of these factors.

Suggestions for the future study are that as mentioned above there may be many other factors affecting tourism development and economic development in Yangon in a review of the previous papers about this topic. Future studies should also be conducted about these factors. Moreover, by taking a little bit more time, this topic should be further studied both in desk-based research and primary research to become more perfect research. Furthermore, Yangon is the main gate to other destinations around Myanmar and tourism development in the other destinations is related to Yangon; therefore, the future studies should also be conducted on other destinations

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BIOGRAPHY

Name: Mr. Tun Win Than

Date of Birth: March 25, 1990

Place of Birth: Kin Seik Village, Mrauk-U Township, Rakhine (Arakan) State, Myanmar (Burma)

Ethnicity: Rakhine (Arakan)

Nationality: Myanmar (Burma)

……………………………………………………………………

Educational Background

2014 – 2018: B.A (Eng.), (1st Hons.)

Faculty of Humanities,

Mahachulalongkornrajavidyalaya University,

Wang Noi, Ayutthaya, Thailand

2018 — 2020: M.B.A (Hotel & Tourism Mgmt.)

Siam University, Bangkok, Thailand