Global consultancy firm Colliers International has warned that Yangon's tourism industry is unlikely to return to pre-pandemic levels in the near term.

According to a recent property market report from Colliers Myanmar, the citywide average hotel occupancy rate fell to 14 per cent in the third quarter, down by 30 per cent year on year.

Research Manager Hpone Myint Thu said it had become clear that a full recovery was likely to be a tedious process, despite calls to partially ease travel and flight restrictions amid stricter health and safety protocols.

"The tourism industry, which contributed almost 7 per cent of the total GDP in 2019, may not return to pre-pandemic levels, at least in the near term,” he said.

"Building consumer confidence should be coursed through stricter health and hygiene measures such as rapid tests and constant temperature checks for guests, intensive cleaning routines with limited exposures, and more spacious layout arrangements in common areas as new norms.

"Beside extensive discounts, hotels can also offer advance bookings with flexible check-in dates, additional vouchers for food and beverages as well as more in-room facilities and amenities to encourage indoor recreational activities.

"All these will somehow keep occupancy and revenue levels afloat.”

Colliers International Myanmar Valuation Manager Christine Remolano the underperforming industry had been placed under further strain by a decline in visitor arrivals.

“The average daily rate stood at USD82 despite the growing pressure for discounts following a significant decline in visitor numbers," she said.

"The Department of Immigration reveals that as of July this year the total visitor arrivals dropped by more than 65 per cent YoY.

"Looking closely, the number of additional visitors arriving between February and July was merely 60,000, putting more stress on the industry."

Click here to download a copy of the report.

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