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Yangon University of Economics Master of Development Studies Programme YANGON UNIVERSITY OF ECONOMICS MASTER OF DEVELOPMENT STUDIES PROGRAMME CHALLENGES AND OPPORTUNITIES OF TOURISM DEVELOPMENT IN MYANMAR AMONG CLMV COUNTRIES (CAMBODIA, LAO PDR, MYANMAR, VIETNAM) KHINE MYINTZU TUN EMDevS – 9 (15th Batch) NOVEMBER, 2019 1 YANGON UNIVERSITY OF ECONOMICS MASTER OF DEVELOPMENT STUDIES PROGRAMME CHALLENGES AND OPPORTUNITIES OF TOURISM DEVELOPMENT IN MYANMAR AMONG CLMV COUNTRIES (CAMBODIA, LAO PDR, MYANMAR, VIETNAM) A thesis submitted in partial fulfillment of the requirements for the Master of Development Studies (MDevS) Degree Supervised by: Submitted by: Dr. Khin Thida Nyein Khine Myintzu Tun Professor Roll No.9 Department of Economics EMDevS-15th Batch Yangon University of Economics (2017-2019) NOVEMBER, 2019 i YANGON UNIVERSITY OF ECONOMICS MASTER OF DEVELOPMENT STUDIES PROGRAMME This is to certify that this thesis entitled “Challenges and Opportunities of Tourism Development in Myanmar among CLMV countries” submitted as a partial fulfilment towards the requirements for the degree of Master of Development Studies, has been accepted by the Board of Examiners. BOARD OF EXAMINERS 1. Dr. Tin Win Rector Yangon University of Economics (Chief Examiner) 2. Dr. Nilar Myint Htoo Pro – Rector Yangon University of Economics (Examiner) 3. Dr. Kyaw Min Htun Pro – Rector (Retd.) Yangon University of Economics (Examiner) 4. Dr. Cho Cho Thein Professor and Head Department of Economics Yangon University of Economics (Examiner) 5. Dr. Tha Pye Nyo Professor Department of Economics Yangon University of Economics (Examiner) NOVEMBER, 2019 ii ABSTRACT Being recognized the noticeable change of Globalization, Tourism Development is the fruitful result of business movement from globalization rapidly. Within ASEAN, Cambodia, Lao PDR, Myanmar and Vietnam (CLMV) countries have the most potential in tourism development. This thesis identify CLMV countries tourism development and examine the challenges and opportunities of current Myanmar Tourism development. The study found out that after emerging from decades of conflict, CLMV prioritized tourism in national socioeconomic development plans and moved forward the regional economic integrations. In Myanmar, enriching natural and cultural assets, broaden of Inbound Tourism Markets and noticeable changes in visa policy are opportunities of current tourism sector but there are 3 major challenges which are poor infrastructures and maintenances, unskilled labors in employments and unprogressive policy and regulation within country. The thesis suggested that challenges will be partially overcome by welcoming SME business and more investment in infrastructures, providing TVET vocational schools around the country and investing and uplifting ICT development within the region. iii ACKNOWLEDGEMENTS First and foremost, I would like to express my deep gratitude to Master of Development Studies Programme Committee, Yangon University of Economics for providing me with the opportunity to undertake this research. I am deeply grateful to Dr. Tin Win, Rector and Dr. Ni Lar Myint Htoo, Pro – Rector of Yangon University of Economics for giving me the permission to carry out this research work, a partial fulfillment towards the degree of Master of Development Studies. I would like to express my great gratitude to Dr. Cho Cho Thein, Head of Department of Economics and Programme Director of Master of Development Studies Programme, for her guidance, and instructions. My special thanks go to my supervisor Dr. Khin Thida Nyein, Professor, Department of Economics, for her practical advices and valuable guidance, valid suggestions and inspirational advice to accomplish my thesis. Finally, I would like to special appreciation to my beloved colleagues from my workplace, Melia Yangon Family and my class mates of Master of Development Studies Programme, 15th batch for their understanding and support to each other. In addition, as for the data and the presentation of this thesis, I am the most responsible person for what I have prepared and presented in my thesis. iv TABLE OF CONTENTS Page ABSTRACT iii ACKNOWLEDGEMENTS iv TABLE OF CONTENTS v LIST OF TABLES vii ABBREVIATIONS viii CHAPTER I. INTRODUCTION 1.1 Rationale of the Study 1 1.2 Objective of the Study 3 1.3 Method of Study 3 1.4 Scope and Limitation of the Study 3 1.5 Organizations of the Study 4 CHAPTER II. LITERATURE REVIEW 2.1 History of Tourism 5 2.2 Sustainable Tourism Development 7 2.3 Importance for Socio Economic Growth 9 2.4 Reviews on Previous Studies 13 CHAPTER III. OVERVIEW OF CLMV’S ECONOMY 3.1 Countries Profile and Geography 15 3.2 Government Reforms of CLMV 18 3.3 Economic Overviews of CLMV 20 3.4 Economic and Social Content 23 v CHAPTER IV. TOURISM DEVELOPMENT IN CLMV COUNTRIES 4.1 Overview of Tourism 26 4.2 Factors of Tourism 31 4.3 Components of Tourism Sector 36 4.4 Government Policy and Strategic Plan 42 4.5 Survey Analysis 45 CHAPTER V. CONCLUSION 5.1 Findings 53 5.2 Suggestions 55 REFERENCES APPENDIX vi LIST OF TABLES Tables Page 2.1 Baseline Issue and Suggested Indicators 7 3.1 Profile and Geography of CLMV Countries 16 3.2 Government Reform Status in CLMV Countries 18 3.3 GDP and Growth Rate of CLMV (current prices in Millions/USD) 21 3.4 Services Sector Percentage in Countries GDP 22 3.5 Economic and Social Indicators, 2017/2018 24 4.1 Accommodation and Licensed Tour Agency of CLMV, 2017 28 4.2 Competitiveness Rankings for Infrastructure, Health and Hygiene 30 4.3 Tourism Services Intensity and International Visitor Arrival 30 4.4 Tourism’s Contribution to Gross Domestic Product and 32 Employment, 2015 4.5 International Visitor Arrivals, 2008 – 2017 (‘000) 32 4.6 Visitors Trends of CLMV, 2017 33 4.7 International Inbound Scheduled Air Passenger Traffic, 36 2012-2014 4.8 Visa Openness, 2013-2017 38 4.9 International and Communication Technology – Key Indicators 39 2014/2015 4.10 Natural and Cultural Protected Areas in ASEAN 41 4.11 Strategic Direction of Government Tourism Sector Strategies 45 4.11 Characteristics of the Respondents 47 4.12 Respondents’ view on importance of Infrastructure 48 4.13 Classification on different Infrastructures Needs 49 4.14 Classification of Tourism Market and others Supports 50 4.15 Importance of ICT in Tourism Sector 51 vii ABBREVIATIONS ASEAN : Association of South East Asia Nations APTA : Asia-Pacific Trade Agreement CLMV : Cambodia, Lao PDR, Myanmar, Vietnam C.S.O : Civil Society Offices CPV : Communist Party of Vietnam CPP : The Cambodia People’s Party GDP : Gross Domestic Product GMS : Grate Mekong Sub region ICT : Information and Communication Technology Lao PDR : Lao People’s Democratic Republic LPRP : The Lao People’s Revolutionary Party MTF : Myanmar Tourism Federation MOHT : Ministry of Hotels and Tourism NLD : National League for Democracy PRC : People’s Republic of China SMEs : Small – Medium Enterprises TVET : Technical and Vocational Education and Training TH : Thailand UNEP : United Nations Environment Program UNESCO : United Nations Educational, Scientific and Cultural Organization UNWTO : United Nations World Tourism Organization WTO : World Trade Organization WTTC : World Travel and Tourism Council viii CHAPTER I INTRODUCTION 1.1 Rationale of the Study The world is globalized. Globalization means the integration of national economies into expanding international markets (Investinganswers, 2019). It made happened the expanding of global market economy, larger scale of trading among countries and regional development. Tourism is essential in Global nowadays. Tourism development increases the direct and indirect revenue for country, openness of economies and financial flow for the Nations. Moreover, the creating more job opportunities for local citizens and promoting local culture and heritage are included in the result of tourism development. In 2016, Travel & Tourism generated US$7.6 trillion (10.2% of global GDP) in total and 292 million jobs, equivalent to 1 in 10 jobs in the global economy. The sector accounted for 6.6% of total global exports and almost 30% of total global service exports. It has been expected the tourism sector to support over 380 million jobs by 2027 (WTTC, 2017). The objective of United Nation World Tourism Organization is to maximize the contribution of tourism to socio-economic development, while minimizing its possible negative impacts. By maximizing tourism's development potential, it needs transformative agenda and take concrete actions moving forward to ensure tourism is key in the implementation of the 17 universal Sustainable Development Goals (UNWTO, Tourism and SDGs, 2015). Asia and the Pacific is the second most visited region in the world after Europe and has been the fastest growth in recent years. In 2016, the region enjoyed a remarkable 9% increase in international arrivals, the highest across world regions, to reach 308 million international tourists. Between 2005 and 2016 Asia outperformed all world regions in terms of growth, with arrivals increasing an average 7% per year. Within Asia and the Pacific, the 10 Southeast Asian countries that comprise Association of South East Asian Nations (ASEAN) are among the world’s fastest-growing tourist destinations. ASEAN received 108 million international visitors in 2015, up more than 45% from just 6 years earlier. International visitor arrivals in ASEAN are expected to continue 1 increasing by 5.1% per year and reach 187 million in 2030 (UNWTO Asian Tourism Trends, 2017 Edition). Cambodia, Lao PDR, Myanmar, and Vietnam joined ASEAN in the 1990s (known as CLMV) are strategically located between
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