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Myanmar hotels accused of tearing up contracts
Tour operators and representatives from Yangon’s foreign-owned hotels have failed to hammer out a solution to a dispute over room prices and contracts.
According to the Myanmar Times, over the past year Yangon’s handful of international-standard hotels have increased room rates significantly – in some cases 300%- to cater for higher demand from tourists and particularly business travellers.
However, agents are upset that the hotels have recently started refusing to set rates in advance for group tourists, a move that has made it difficult to set prices for packages.
"I want to say openly to Traders, Sedona, Park Royal and Chatrium Hotels: Please give us a contract. We can work together on the terms and conditions but please honour a one-year contract," said U Khin Zaw, chairman of Tour Mandalay.
"You can raise the price when we make the contract but don’t change the contract price later on," the tour operator added.
Abercrombie and Kent said many hotels were reissuing contracts "with considerably higher rates and very strict cancellation and deposit conditions".
Diethelm Travel CEO John Watson said some hotels were "tearing up their contracts and re-negotiating each booking – upwards".
Myanmar deputy minister for hotels and tourism U Htay Aung told a meeting between operators and representatives from Yangon’s foreign-owned hotels, "Myanmar tourism is just a starting to prosper. If we all cooperate we can work for good … tour operators and hotels are just like husband and wife."
A&K Australia’s managing director, Sujata Raman predicts it will take three or four years to build up the infrastructure to cope with current demand "and prices will continue to increase".
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