Myanmar Hotel IndustryBurma Hotel Industry
Hotel in Myanmar
Burma used to be an unfamiliar, unpopular, forgotten land between two of Asia's most important destinations: During the high seasons, only a few hundred thousand would make the effort to go there, which is made more serious by the boycotts, the complex borders and travelling limits and the precarious monetary environment. In only a few years Myanmar has developed from flower to flower.
Myanmar has had between 200. Thousand visitors who arrive at Yangon International every year. Yangon was the only point of arrival to Myanmar until 2013, but from August 2013 four borders with Thailand were opened for tourist traffic. As of 2011, the number of visitors increased drastically and in the high seasons there was a scarcity of hotel rooms.
2013 proved to be the peak of room rates. Since then, the hotel environment in Myanmar has changed as many new properties have been constructed. A 50% increase in the number of tourists compared to the previous year is a thing of the past and further expansion will be stepped up. In the following chart, the number of tourists arriving at Myanmar's Yangon and Mandalay airport from 2006 to 2017 (left) and the number of hotel rooms in Myanmar (right) are shown.
Rural frontier visitors are excluded from these figures. The Myanmar Travel Graphic from 2008 to 2017. Right: The number of hotel rooms in Myanmar. Burma touristic dates of arrivals. The Ministry of Hotel and Touristic Statistical Office. Bagan greeted 280 in 2016. In 2016 there are about 650 in Siem Reap (Angkor), but less than 100 in Bagan.
Christmas/New Year can be very crowded in the small cities around Bagan or the Inle Sea, but most of Myanmar is not yet overcrowded by people. Comparison of Angkor and Bagan visitors (2011-2017). Myanmar needs to significantly upgrade its facilities if it is to face competition from Angkor Wat tourist destinations in Cambodia.
The city has a large multinational airfield, while Bagan (NYU) is a small airfield that is only serviced by domestic airlines. Construction of new establishments is greatly restricted by the archaeological zone of Bagan, where new establishments are outlawed. In most cases, the new hotel zones that the Myanmar administration has created around Mandalay, the Inle Sea and Bagan have not been very successful.
In 2012, for example, the federal administration started a hotel zoning program in the southeastern part of Inle Sea. The new hotel area, which is clearly viewable from Google Earth through the new streets on the bulldozer mounds, is more than twenty kilometers away from Nyaung Shwe and thus quite insulated.
There are only two new hotels in 2017 and it is clear that this hotel area is not a big success. The peasants were protesting that they were purchased at very low land costs, and arable land and a slope were demolished, left with a large open wounds clearly seen from the sea.
Time line of tourist statistics and hotel market developments. Myanmar's hotel prices more than more than doubled in 2012 and in 2013 room prices trebled over 2011. The Sedona Hotel in Yangon, for example, has risen from US$50 per overnight stay in 2009 to US$280 in 2013. It seems that the unbelievable increase in hotel room prices has stabilised.
The number of hotel rooms rose by 44% from 25000 to 36000 in 2013. Many newly opened establishments have helped improve the hotel environment, but many travellers are complaining about expensive rooms. Yangon has many new properties and hotel utilization has fallen. Yangon hotel room prices have fallen.
Hotel room rates have increased in Nyaung Shwe, Inle Sea, as there are a very small number of them. Last year's large number of open air hotel, hostel and guesthouse establishments seems to have remedied the lack of accommodations this year ('2015 - 2016).
Since its peak in 2013, the room occupancy of 20 properties in the Yangon downtown(*) has fallen by around 30 per cent. Above all, it is the luxurious hotel sector that has significantly reduced its room prices. Mandalay hotels' room occupancy has fallen by about 20 per cent on a year-on-year basis.
Since 2015, the mid-price of rooms in Nyaung Shwe (Inle Lake), where many contemporary properties were constructed between 2014 and 2016, has declined by around 30 per cent. Room costs in other cities and communities have declined much less. Myanmar's room price is still falling. Cities such as Mawlamyine and Pyin-U-Lwin have many new properties, but no significant drop in room-price.
In Ngapali there are new middle class and budgeted accommodation; and room prices in Ngapali and Mrauk-U are falling for apparent reason. Hotel conditions from 2011 - 2017. Over the last six years, the number of hotel rooms in the major cities (the Big 4) has doubled or tripled, except in Bagan, where the government is limiting the construction of new hotel accommodation in the archaeological area.
There were only 731 establishments in Myanmar in 2011, doubling to 1590 by 2017. Inclusion of Bagan on UNESCO's World Heritage Site map has been the subject of a federal election drive in a vulnerable area after the Ministry of Culture decided to take legal recourse against properties constructed within the Bagan Temples Group.
In March 2016, the Bagan Heritage Committee withdrew the licence for 25 hotel properties under development. Proprietors can request the development as a dwelling but cannot work as a hotel. The Ministry of Hotel and Tourist Affairs.
Mrauk-U has not had any new hotel buildings since 2011, while Hsipaw now has 381 rooms instead of 52 in 2011. Hotel prices are even higher than in the neighbouring states such as India, Thailand or Cambodia. The hotel room prices (in US dollars) have fallen in the last 5 years, especially the prices for luxurious inns.
Yangon and Mandalay luxurious resorts, which trebled their room prices in 2013, have significantly reduced their room prices. Myanmar has a restricted number of rooms and will continue to be an expensively populated city; in some other countries, such as Shan State, the cost of accommodation can be much lower.
For the above factors, room rates in Bagan are falling less rapidly. Travellers should plan their holidays with care - spend more in less expensive locations and less in the bustling city of Yangon. Prospects for travellers are good: the downtrend in room rates will persist in the coming years.
Accommodation is still being constructed, while the number of tourists seems to be increasing only slowly in 2018; it is likely that Myanmar's hotel offer and demands will make it less expensive. com - Collier's International Upper Scale Hotel Market Report 2015: Utilization continued to decline for the third year in a row, curbing averaging room bookings. fronttiermyanmar. net - Yangon residents benefit from a free fall in hotel bookings. www.hvs. com/article - Hotel Valuation Services:
Detailed hotel marketing review. Myanmar Responsible Business. org - Oct 2016: The hotel policy is broken: here is how to fix it. oxfordbusinessgroup.com - 2016 was a disillusioning year; room prices in Myanmar's hotel industry are declining.