Myanmar Now Facing Hotel Oversupply

Myanmar’s tourism has improved in the last few years that many expecting the tourism boom to continue. Therefore, developers of Myanmar hotels are building left and right but the problem now is that there are too many hotels in the country while the number of arriving foreign visitors did not reach the expected target number by the government’s tourism department.

According to the managing director of one of the hotels in the country scheduled to launch, Su Su Tin, it was 2011 to 2013 when the tourism boom started and it was during that time that there is not enough supply of hotel rooms to cover the demand. Developers than started to build hotels left and right because of the sudden increase in interest from the investors who are hoping to answer the demand.

The investors were motivated further by the announcement made by MoHT or Ministry of Hotels and Tourism that they are devising a 2013 master plan for the tourism sector. The plan is to encourage around 7.5 million visitors to come to the country by the year 2020.

In the previous year, Yangon International Airport only recorded 5.9 million passengers entering the country and the foreigners are 66 per cent in number. Looking at the year-on-year growth, 8.5 per cent is already a considerable number but this is still not close to the expectations of the industry experts.

The problem that hotel managers now have is how to increase the number of tourists coming to the country in order to answer the problem with oversupply. According to the figures released by MoHT, 1,628 hotels as well as guesthouses are recorded in the first quarter of 2018 and there is a lineup of hotels from major developers that are expected to launch within the year.

Majority of these hotels expected that the tourism industry is going to spike up. Now, the expectations are not coming true therefore, unnecessary stress has fallen on the hoteliers. Regardless, managers of Myanmar hotels are keeping a positive attitude about it as they can improve their service quality, charge competitive prices and offer attractive packages.

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