Despite the surge of Asian visitors especially from China, majority of upscale hotels continue to experience lower occupancy rates due to the downward trending number of western arrivals according to a recent property market report released by the global consultancy firm, Colliers International Myanmar. “The legalization of the Gambling Law may perhaps bode well for the industry in the long run although market remains underwhelming. The new law is expected to have significant impact on tourism.

However, more has to be done in bolstering the country’s overall tourism offerings such as branding and identity as well as infrastructure, amenities and facilities. Overall this should help streamline with the existing hotel and visitor landscape, and will eventually reinforce the success of multi-faceted hotel and gaming destinations,” said Mr. Hpone Myint Thu, Assistant Research Manager of Colliers International Myanmar.

Meanwhile, the occupancy rate did not show any signs of improvement despite the substantial 25% yoy reduction of ADR from USD113 to USD85 in Q2 2019. “The entry of more modern hotels will exert further downward pressure on daily rates for older upscale developments. These adjustments in ADR are likely to continue as more supply comes online in the next two years,” said Ms. Joan Mae Lee, Assistant Valuation Manager of Colliers International Myanmar.

“In collaboration with local as well as international investors, the government should focus first in strengthening infrastructure and policies to improve overall tourism activities, and perhaps eventually develop Myanmar’s potential to become a hotel and gaming destination in the long run. Once the infrastructure is in place, creating an enabling environment that promotes recreational activities should also be a major draw for travelers and casino-goers alike,” said Mr. Hpone.

Click here to download the Yangon Hotel Market Report Q2 2019.

For more information about the report of the Yangon property market phone or email Hpone Myint Thu from Colliers International Myanmar via the contact details below. 

Source: Colliers International Myanmar

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