ZDT gained popularity after Myanmar eased visa requirements for visitors from China by allowing visas on arrival in an attempt to boost tourism. 

The concept involves Chinese tourists buying cheap tour packages from companies registered in the destination country but owned by Chinese nationals with little or no involvement from local tour operators and businesses. The package involves travel itineraries, hotel bookings, restaurants and retail shops connected to these Chinese tour operators. 

This means that the local economy does not benefit much due to cash payments and skirted taxes and governments often lose out on tax revenue. 

Other strategies that are questionable include coercive sales techniques and unlicensed travel guides. 

In response to complaints from local tour operators, Business License Department Director U Myo Win Nyunt said changes were being made with the tourism committees of regional and state governments for a policy change. 

Colliers International said this type of tourism has not only challenged Myanmar, but also major tourist destinations such as Thailand and Indonesia.  

“The concern among the locals in affected countries is that the money spent during the trip hardly goes into the wallet of local businesses as most of the payments are made online through Chinese platforms such as Alipay and WeChat Pay,” Colliers stated.  

As a result, the payments are not also converted to local currency while tour operators avoid paying tax to the government.  

The decision to grant visas-on-arrival to citizens of China, Japan and South Korea was a response to declining visitors from western countries over the Rakhine crisis. The move came as the number of Chinese visitors was already strong. 

Colliers believes that a collaboration between the government and the private sector would be needed to tackle this issue in the long run.  

“We recommend hoteliers to provide payment channels friendly with Chinese visitors and align their marketing activities towards independent Chinese travelers and tourists from other countries that have recently received visa exemption.” 

During the four months of this year, Myanmar welcomed 650,000 Chinese visitors up 30% according to the Ministry of Hotels and Tourism. 

Sources: Myanmar Times, TTRWeekly, Minister of Labor Immigration and Population, Frontier Myanmar, Colliers International Myanmar

Similar to this:

2019 visitor numbers in Myanmar up 30% - CAPA

Recent easing of visa requirements has been effective in enticing Asian tourists back - Colliers International Myanmar

"Myanmar’s economy to grow by 6.4% over Sept 2018-2019"