Hotel investment reaches US$2.7bn
Foreign investment in the hotel sector has reached US$2.7 billion, Htay Aung, minister for hotels and tourism, said at a cooperation signing ceremony between Hoang Anh Gia Lai Myanmar and the Spain-based Melia Hotels International.
“There are 47 hotels invested by foreign investors,” he said.
Hotel investment is largely coming from Singapore, Vietnam, Thailand, Hong Kong, Japan, Malaysia, the UK, Luxemburg and the UAE. There are other joint-venture operations with domestic businesses.
The hotel sector is booming with the increase in tourism.
Myanmar investment in the sector was Ks55 billion (US$55 million) in 2011 and the amount increased to Ks600 billion in 2014.
The Myanmar Investment Commission and the Hotels and Tourism Ministry are getting more hotel, motel and guesthouse proposals, according to Aung Zaw Win, the director general of the ministry.
The investment by local and foreign investors in the sector is expected to top US$3 billion in 2015.
A Myanmar Tourism Master Plan, which aims to promote Bagan, Inle Lake, Mrauk-U, Yangon and other popular tourist destinations, is being developed.
Myanmar received 3.5 million visitors and generated more than US$1 billion last year, according to the ministry.
Last week, the MIC gave the green light for hotel projects in Kyunphila, Ngaman and Boywe islands in Myeik Archipelago, Tanintharyi Region, according to the Myeik Division of the Hotels and Tourism Ministry.
“The land measurement tasks are already taking place. The Myanmar company will operate in partnership with a foreign counterpart,” said an official from the Myeik Division.
The 27 companies have proposed hotel projects in Kayinkwa, Samat, Ngakhinnyo, Kyunphila, Ngaman, Ngahtweyu, Ngalonelapel, Bonetkyaw, Hlainggu, Satan, Boywe and Domel islands, according to the regional government.
Altogether 13 hotels are due to be built on these islands and the MIC has given permits on Ngalonelapel, 155 island, Kayinkwa, Ngakhinnyo, Kyunphila, Ngaman and Boywe islands.
Kyunphila is located at 45 nautical miles northwest from Kawthoung and the Mokanint UAE Co Ltd and the Kyaw Win Phyo Company will implement a joint-venture hotel project on its 5,100-acre site.
There are more than 800 virgin islands in the Myeik Archipelago, making an attractive prospect to international visitors.
Currently, a trip to Myeik costs around US$800 due to the weak infrastructure.