As Myanmar’s economy continues to grow, foreign investors will always have ample opportunity to establish their business presence. In the next few months, follow us as we look into Myanmar’s individual services sector, highlighting their specific challenges, opportunities and its general outlook in the long term.
Sectors we have covered:
Banking and Finance – The Economic Driver, Challenges, Opportunities and Forecast
Telecommunications - More than Just Talk-time, Challenges, Opportunities & Outlook
Transportation - Better Transport to Boost Economic Growth, Challenges, Opportunities and Outlook
Retail – Myanmar's Economy Fueling the Retail Boom, Challenges, Opportunities and Outlook
A Look into Myanmar's Services Sector: Hotels & Tourism
This post is the second in a 2-part article addressing Myanmar’s Hotel & Tourism sector. It will explore the Opportunities, Government Support and Outlook of the sector.
Click here to read part 1 – Introduction and Infrastructure Constraints
Sectors we have covered:
Banking and Finance – The Economic Driver, Challenges, Opportunities and Forecast
Telecommunications - More than Just Talk-time, Challenges, Opportunities & Outlook
Transportation - Better Transport to Boost Economic Growth, Challenges, Opportunities and Outlook
Retail – Myanmar's Economy Fueling the Retail Boom, Challenges, Opportunities and Outlook
A Look into Myanmar's Services Sector: Hotels & Tourism
This post is the second in a 2-part article addressing Myanmar’s Hotel & Tourism sector. It will explore the Opportunities, Government Support and Outlook of the sector.
Click here to read part 1 – Introduction and Infrastructure Constraints
Opportunities
To address these challenges, foreign investors are invited into Myanmar to lend their expertise in the development of tourism infrastructure, as with other growing industries seeking to tap on foreign knowledge and technical know-hows. Typically the set-up of tourism businesses are permitted under a foreign-local Joint Venture, however 100% foreign ownership are also allowed for hotel operators running accommodation rated 3 star and above.
Myanmar's uniqueness in the region is that it retains the colonial legacy of historic architecture. With several colonial properties in Yangon in need for restoration, opportunities exists for the right investors to develop hotels, restaurants and other retail projects. Moreover the Myanmar tourism industry is booming with an annual increase of visitors, as more international investors are attracted to the hospitality sector.
Government Support
The Ministry of Hotels and Tourism has granted more licenses to tourist operators, whose business practices does minimal or no harm to the natural environment. The Ministry also recognizes that such move to grant more licenses create job opportunities for the local community.
Apart from the granting of licenses, Myanmar's tourism authorities and associations must collaborate with private sector and neighboring countries to develop unique tourism corridors and improve connectivity to Myanmar's picturesque countryside.
With ancient cities and timeworn pagodas, Myanmar has manifested itself as a travel destination for tourists and both rural and urban businesses and residents can benefit from tourism efforts across the country.
As revealed in the 2014 Population and Housing Census, rural population stands at 66.45 percent of the total population in Myanmar, thus the government would like to prioritize that the economic and social benefits of tourism efforts reach these rural areas.
In view of preserving rich culture and biodiversity, the government highlighted ecotourism and its sustainable development to leverage on booming interest in this area of tourism. In addition, the Ministry is also looking into other ways to support enterprises within the hotels and tourism sector.
Outlook
Globally, the tourism industry is an economic generator uplifted by the growing middle class and the rise of low-cost carriers, and this is especially so in Asia. Above all, the tourism industry needs to be sustainable – either in tourist arrivals or quality of attractions – through extensive careful planning. This is to avoid inefficacies and overdevelopment.
Myanmar's tourism industry has much to develop and learn from its neighboring countries, who have over time develop their individual tourism niches. This is why the consistent efforts for systematic development of the tourism industry is essential.
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Editor’s Note: For those who have missed out on the first post of this 2-part article, click here to read Part 1 – Introduction and Infrastructure Constraints or click below for the other services sectors:
Banking and Finance – The Economic Driver, Challenges, Opportunities and Forecast
Telecommunications – More than Just Talk-time, Challenges, Opportunities and Outlook
Transportation – Better Transport to Boost Economic Growth, Challenges, Opportunities and Outlook
Retail – Myanmar’s Economy Fueling the Retail Boom, Challenges, Opportunities and Outlook