Hotels face action if room rates too high
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Hotels fleecing the increasing number of tourists with high room rates will face action by the Ministry of Hotel and Tourism.
Amid the rising number of tourists visiting the country since 2011, the hotel and tourism business has been booming in 2012. However, in the peak season, rates have shot up exorbitantly due to the shortage of rooms, especially in Yangon, the former capital city, which sees the most number of foreign visitors.
The five-star Sedona Hotel has been charged with violation of hotel and tourism announcements.
“No other hotel has yet faced action,” a ministry official said.
The ministry made the announcement at a conference held in Naypyidaw at the end of July. It was attended by general managers of foreign investor hotels.
The ministry held the conference to raise the issue of exorbitant room rates, which are slowing down the hotel and tourism business. The ministry intends the standard room rate to be US$150 per room and the rate should be in keeping with Asean standards.
Any flouting of the ministry’s order could lead to heavy fines and cancellation of licence, while visa status could be made non-renewable in the cases of foreign direct investment general managers. According to the Build-Operate-Transfer system, foreign-invested companies will also face consequences.
