Colliers International Myanmar's latest Annual Review Ngwe Saung Hotel and Resort 2017 reveals Ngwe Saung remains an attractive holiday spot for locals, especially those based in Yangon. Demand appears to be positive with year-round hotel occupancy and average daily rate (ADR) settling at a healthy yet seasonal state. With the right infrastructure and strong consideration for different amenities and services, Colliers believes that Ngwe Saung can be a marked global destination going forward. 

Colliers Report At a glance:

• Myanmar's tourist industry forecasted to outperform 183 countries in 2017. 
• Hotel stock grew by an annual average of 12% from 2000 until the end of 2017.
• The 2017 low season occupancy rate hovered at 37%, the high season occupancy rate reached 89%.
• 2017 average occupancy rate stood at 68% by end of 2017.
• The year-round ADR stood at USD$110.

WILLIAMS MEDIA spoke to Paul Ryan Cuevas, Analyst for Colliers International Myanmar, Research and Advisory Department who said: "The opening of the country in 2011 caused a revival in Ngwe Saung’s tourism industry. As a result of the increased global awareness gained from both domestic and foreign travellers over the recent years, Colliers has witnessed a significant progress in Ngwe Saung’s hospitality sector."

The tourism and hospitality sector has played a crucial role in driving forward Myanmar’s economy since the start of national reforms in 2011. In fact, Colliers International Myanmar noted that the influx of both foreign and domestic travellers in the country for the past decade has led the World Travel and Tourism Council (WTTC) to forecast Myanmar's tourism industry to outperform 183 countries in 2017.

"Apart from the prominent destinations in the country like Yangon, Bagan, Inle Lake, Mandalay, Ngapali, etc. that have gained increased global awareness over the recent years, WTTC together with the Ministry of Hotels and Tourism has noted one more key location that has significantly contributed to the sector's continuous growth — Ngwe Saung," said Cuevas.

Source: Colliers International Myanmar Annual Review Ngwe Saung Hotel and Resort 2017

The report indicates that Ngwe Saung is among the most prominent beach destinations in Myanmar, alongside Ngapali and Myeik archipelago. As a result of the mounting traction from vacationers, the real estate services firm has witnessed a growing number of hotels in the area. "In the past, the hotel market in Ngwe Saung languished due to the country’s isolation with only limited supply of poor quality rooms catering to limited tourism traffic, mostly locals, as well as Chinese and Thai guests," said The Htet Oo, Research and Advisory Manager for Colliers International Myanmar. "The opening of the country led to a revival in the hotel sector and tourists started coming to Ngwe Saung as a springboard for discovering the island's tropical beach spots. In turn, a surge in hotel stock took place in four years from 2012 to 2015," she explained.

As recorded by Colliers, the earliest development built in the area was in 2000 with the opening of the first ever mid-tier hotel (Sunny Paradise Hotel) and 2-star hotel (Yuzana Resort), jointly launching a total of more than 170 units. "Following the easing of the country's sanctions in 2011, the highest additional stock was recorded in 2013 due to the completion of two notable hotels — Ocean Paradise Hotel and Ngwe Saung Yacht Club & Resort, collectively representing nearly 215 rooms," said Oo.

Source: Colliers International Myanmar Annual Review Ngwe Saung Hotel and Resort 2017

At present, the famed Ngwe Saung beach is offering a total of 25 hotels ranging from budget lodging to luxury hotel developments, representing more than 1,370 rooms. This stock grew by an annual average of 12% from 2000 until the end of 2017.

The latest developments introduced in the market are:

• K Resort
• RIA Resort
• Hotel @ The Sea
• JL Lodge

"While we have not recorded any future notable hotel projects, we see a potential strong demand likely bolster growth if developers aim at constantly differentiating their offerings," Cuevas mentioned.

He also noted that there remains a lack of modern hotel developments in Ngwe Saung with the big majority of the hotels adopting a tropical resort design defined with the use of more organic materials such as wood and lush greeneries.

"We advise developers to start incorporating contemporary yet sustainable architectural designs that capture both modern tropical and minimalist feel. We also recommend hotels to start introducing more lifestyle-oriented facilities and amenities like indoor fitness centres, spas, saunas, etc.," he said.

He also believes that the inclusion of shuttle services and technology-focused products and facilities like electronic key cards, integrated communication, guest apps, remote control systems, etc. could also aid in providing guests with a convenient and an unforgettable hotel stay.

Source: Colliers International Myanmar Annual Review Ngwe Saung Hotel and Resort 2017

As for Ngwe Saung's hotel demand, Colliers Hotel and Resort Annual Review observed a seasonal trend whereby tourist arrivals only surge during the peak season, especially during December holiday breaks and during the Thingyan festivities in April. "While most hotels temporarily shut down during the monsoon season (June-September), some remain moderately operating, catering mostly to domestic vacationers taking advantage of the promotional packages and rates," Oo explained.

In 2017, the low season occupancy rate hovered at 37% level, while the high season reached 89%. Overall, the average occupancy rate ended 2017 at 68%. Meanwhile, the year-round ADR stood at USD$110. Colliers supposes this rate will persist in the near to medium term as the firm has not documented any future supply to be built in the area.

Source: Colliers International Myanmar Annual Review Ngwe Saung Hotel and Resort 2017

"In turn, this should pose a green light for hotel developers to push for differentiation in terms of both services and offerings," Cuevas noted. "Hoteliers should promote tour packages that maximise guest experiences such as motorised boat tours, fishing village trips, as well as outdoor activities including windsurfing, scuba diving, etc. In general, these will help extend the length of stay and repeat visitation from guests."

"Looking ahead, for Ngwe Saung to become a marked global destination, the government needs to address the lack of infrastructure developments in the area (e.g. electricity source, road projects, etc.). Likewise, a strong consideration of diversification in offerings and amenities amongst hoteliers (e.g. introducing lifestyle-oriented facilities and/or excursion trips, etc.) will further facilitate growth in the area’s hotel market moving forward" Cuevas concluded. 

Source:  Colliers International Myanmar 

Click here to view Ngwe Saung Hotel & Resort Annual Review 2017.

For more information or to discuss the report, phone or email Karlo Pobre and The Htet Oo from Colliers International Myanmar via the contact details listed below.

Similar to this:

Competition eases for Yangon's serviced apartment sector, Colliers reports

YCDC announces partnership with IFC to reform Yangon's construction permit system

Ngapali hotel market buoyed by resort regulars despite decreasing occupancy rates - Colliers International