Surge of domestic investment in hotels, tourism accelerating
Published on Friday, 29 August 2014 22:12
Investment by Myanmar nationals in the hotels and tourism industry has reached nearly US$690 million, making it their third most heavily invested industry, according to the Directorate of Investment and Company Administration (DICA).
Local businesspeople have been pouring money into the industry for the past three years by constructing hotels and related buildings following an easing of licensing by the Myanmar Investment Commission (MIC).
DICA said its figures counted cumulative investment up till the end of July.
As of the end of June the number of permitted hotels reached 1,019, with most in Yangon and Mandalay, according to the Ministry of Hotels and Tourism.
More than 2 million tourists visited Myanmar last year and 3 million are expected this year.
The number of licensed hotels, motels and guesthouses has increased steadily since 2010 when there were only 700 in the country. Fifty were added in each of the next two year, and 123 were added last year, bringing the total to 923. In the first six months of this year the number shot up by 96 to 1,019.
Investment by Myanmar nationals in hotels and tourism accounts for 14 per cent of their total investment in the 11 industrial categories that the MIC uses to classify investment.