Hotel investors join in Myanmar market
Hotels and Tourism deputy minister, Tin Shwe, reported that Myanmar’s tourism industry is now booming to the point the ministry must ease conditions for foreigners to invest in in new hotels.
“European and Asian hotel investors are now the priority,” he explained to local media just days after the ministry organised a briefing on hotel joint ventures that attracted 600 business executives from Thailand alone.
Hotel representatives from Thailand were interested in joint venture rules and incentives once a hotel is open Their wish list would include repatriation of profits and tax holidays.
Joint ventures are the only option open to foreign investors in the hotel industry. Usually the local partner will either own the building or land, while foreign investors bring in the cash to convert existing premises into hotels or build a new hotel from scratch.
“At present, a Vietnamese firm is constructing a hotel at an estimated cost of US$400 million… so the Ministry of Hotels and Tourism also invited Thai entrepreneurs for a briefing to explore opportunities,” the deputy minister added.
Eight international companies have already invested more than US$1.7 billion in hotels.
Ministry of Hotels and Tourism director, Hlaing Oo, said: “Nay Pyi Taw, Mandalay, Bagan and Inlay regions have seen a massive influx of tourists on top of the high volume in Yangon.”
“This is encouraging foreign companies to make huge investments in the hotel sector, mainly for five- and four-star hotels in Yangon. The top investor in this sector is Singapore.”
Singapore leads with investments totalling US$880.46 million, followed by Vietnam with US$440 million, Thailand with US$235.75 million and Japan with US$183.10 million.
Myanmar’s hotel and tourism industry is fifth among the top sectors that attract the most foreign investment. Others are energy, oil and gas, manufacturing and mining.
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