Myanmar’s cyclones to hit tourism hard

TravelMole guest comment by Parita Chitakasem – research manager at Euromonitor International

Damage caused by Myanmar’s cyclone, together with government resistance to co-operate with the international community, is set to deepen wounds of this already fractured tourism industry which has been wrought with debate and unrest.

Myanmar had always been subject to international condemnation towards its military government, and many tourists continue to shun Myanmar as a holiday destination.

Latest full-year records show that the market received less than 350,000 visitors in 2006, some distance behind its neighbours, China (over 56 million), Thailand (14 million), India (4.3 million) and Laos (1.2 million).

Tourism revenues had also just suffered a blow in the last quarter of 2007, due to monk-led protests. Arrivals plunged by almost half, whilst hotel occupancy rates dropped by 70%, with major players forced to drastically lower room rates.

The biggest loss in tourism decline is expected to be seen in the capital, Yangon. Tour groups and flights cancelled services out of fear that the city is damaged and hazardous, and market stalls and tourist attractions suspended services to tourists.

Arrivals to the city are projected to plunge by almost 70% over the next three to four months. Shortages of food, water and petrol will also result in embassies discouraging citizens from visiting the destination.

The government is once again in the international spotlight and criticism towards its slow response is hurting tourism prospects even further. With more attractive and dynamic destinations of Cambodia and Laos showing stronger promotional activity, Myanmar is set to lose out even further within the region, and is unlikely to recuperate its losses for several months.

To maintain tourism revenues, Euromonitor International expects the government to heighten its focus on boosting border tourism.

Major entry points such as Muse (bordering with China) will be key areas of development. Regions in the north, including the Kachin and Shan states, were unaffected by the cyclone tragedy, and as such, will also be earmarked for vast tourism development.

Whilst many travellers will boycott Myanmar, there will still be those who choose to ignore the human rights issues and visit Myanmar nevertheless.

Besides some travellers in Western markets, China and Thailand will be particularly strong supporters of Myanmar’s tourism recovery, as these two markets tend to accept the military regime and visit the country for gambling and shopping purposes.

Either way, regardless of when and to what extent the tourism recovers, the sad and fundamental issue we have been witnessing for the past 46 years will still remain, in that it will be the local communities which will suffer the most from any form of recovery.