Yangon's hotel market witnessed a 6 per cent year-on-year (YOY) increase in the citywide occupancy rate.

Regardless of the 2 per cent YOY increase in the average daily rate, occupancy managed to trail upwards. This can be explained by the lack of supply combined with the improvement in foreign arrival levels.

Forecast at a glance:

• Demand: Visitors from Asia, especially from Thailand and China, dominated the latest foreign arrivals. Colliers estimates that foreign arrivals should grow by 2-4 per cent in 2018 amid the government's tourism development plans and initiatives.
• Supply: Yangon’s upper-scale hotel room stock remained at more than 4,800 rooms. By year-end, Colliers expects the new supply to add a record of more than 1,200 rooms.
• Occupancy Rate: Citywide occupancy reached 47 per cent amid the increase in ADR. The anticipated sizeable stock in the second half of the year will likely exert downward pressure on occupancy.
• Average Daily Rate (ADR): Colliers recorded a 2 per cent YOY increase in ADR. Colliers expects a 3-4 per cent decline in ADR as substantial supply comes online over the next two years. 

Colliers International Myanmar projects the entry of 12 upscale hotel projects in 2018-2020 will exert downward pressure on both occupancy and daily rates - especially for older developments as newer hotels offer more competitive rates.

In a recent conference, Vice President of Myanmar, U Henry Van Thio made the announcement to loosen visa procedures for China, Japan, and South Korea. 

Related reading: Myanmar grants Visa-free entry for Japan and South Korea

Colliers are optimistic that foreign arrivals will continue to rise given the sustained interest from Chinese, Thai, and American tourists, and the rising numbers of arrivals from Myanmar's emerging tourist markets like India, and Malaysia.

Click here to view Colliers International Myanmar Hotel Market Quarterly Report Q2 2018.

For more information or to discuss the report, phone or email Karlo Pobre Deputy Managing Director or The Htet Oo, Manager for Research and Advisory for Colliers International Myanmar via the contact details listed below. 

Source: Colliers International Myanmar

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