Myanmar tourism needs new infrastructure and laws

With over 20 years in the industry, Sabei Aung, managing director of Nature Dream Travels and Tours Co, has witnessed rapid changes in the industry. She said it is high time to strike a balance between supply and demand as an influx of tourists is expected after the National League for Democracy swept the election.

"Shortly before the election, investment in the industry was postponed. Overseas tour companies also waited for the results. Now that the NLD will form the new government, the new boom time is on the horizon, starting next month," she said.

"Myanmar can be one of |the biggest tourist markets in Asean."

Myanmar has enjoyed a surge in tourists since it opened doors to foreigners. Last year, the number reached 3.08 million. This year, it is expected to hit 4.5 million, revised down from the target of 5 million because of the floods.

According to the Hotels and Tourism Ministry, as of September, the country had 48,425 hotels and guestrooms, 5,649 tour guides and 444 transport companies.

Sabei Aung said only 30 per cent of the rooms met international standards, but the government concentrates only on creating hotel zones without taking quality into account. During the Thein Sein administration, new tourist destinations were unveiled, but road development leading to the destinations progressed slowly.

Domestic airlines, some operating with just one plane, are short on capacity. The number of qualified tour guides and rental car companies is also insufficient. The industry needs a proper human resource development strategy, inland and overseas, and must embrace IT in the working system. Credit cards are accepted at few hotels and restaurants.

This begs immediate improvement or the country would face serious bottlenecks to further developing the industry.

The new government should also improve the data collection system. The old government inflated tourist numbers by 60 per cent by including those crossing the border into the country on a day pass, she said. The actual number should be only 1.5 million this year, increasing to 2 million next year.

"The authorities want the tourist arrival list to increase year by year. So they made the fake list. It is important for the new government to take care of this. The data are important for investors," she said.

The Hotels and Tourism Ministry has issued licences to 1,235 properties, mostly local operators.

Among foreign investors, Singapore controls the biggest share of the hotel industry with US$1.53 billion (Bt55 billion) in assets at the end of September, followed by Vietnam’s $0.44 billion, Thailand’s $0.34 billion and Hong Kong’s $0.15 billion.

In total, foreign investors own 47 hotel projects worth $2.64 billion. Only one new project was approved this year.

"The new government needs to strike a balance between the FDI (foreign direct investment) policy and the national interest. They need to set proper policy guidelines so that foreign investment will not hurt local business. The government needs short-term targets as well as long-term prospects," she said.

Sabei Aung’s petition to Parliament recently led to the drafting of a new tourism law. The law is expected to be approved by the new government, to replace the old one passed in 1996. In the law would be proposals to improve investor protection, financial infrastructure for small operators and protection of local communities.

She welcomed foreign investment for the sake of competition and competitiveness, but foreign ownership should be limited by a specific timeframe, say 10 years. Local communities should also |be included for sustainable results.

Under the tourism master plan, new destinations in Kayah State will be introduced. Crony companies are now investing in new properties, chasing away original occupants, she said.

"This led to bad feelings towards tourism among the locals. They should be made stakeholders of the properties and they should be the first to be offered jobs," she said.

The law is urgent to ensure equal benefits for stakeholders – hotel owners, travel and tour companies, tour guides, local residents and everyone concerned, she added.

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