TOURIST arrivals increased 22.8 percent in the first six months of 2011, but the rise was not all good news for the tourism sector.
According to the Ministry of Hotels and Tourism, only 5525 of the 172,244 tourists who visited the country from January 1 to June 30 came on group packages, down more than 60pc on the same period last year.
However, there was a 40pc increase in foreign individual traveller (FIT) arrivals, which totalled 106,970.
“In my company the number of booking is about the same as 2011 but this year I’ve received more FITs, who book flights and hotels rather than complete packages – I would say total bookings are now about 60-40 in favour of FITs,” said Daw Phyu Phyu Mar, the managing partner of Seven Star Tours in Hlaing township.
She said FITs were usually younger and more adventurous and that if the government reduced restrictions, such as visa and border crossing regulations, “we are likely to see more FITs come to Myanmar”.
Industry sources said the increase in FITs was in large part due to the end of a tourism boycott campaign and positive press following the general election and release of Daw Aung San Suu Kyi in November 2010. The campaign had been particularly effective in Western Europe, the United Kingdom and United States.
Arrivals from European countries totalled almost 40,000 in the first six months of 2011, a 44pc increase on last year, with France (9435 visitors) and Germany (6119) leading the way.
Daw Phyu Phyu Mar said her company has received a “good number” of bookings for the coming peak season, which runs from October through to March 2012.
“We’ve even had enquiries from Balkan states and other countries in eastern Europe such as Romania, Bulgaria and Ukraine. But because of the unstable currency exchange rate, we might see some cancellations later on.”
U Hpone Thant, the former secretary of Union of Myanmar Travel Association, said the figures showed travellers wanted freedom and flexibility, rather than the restrictions of joining a package tour where everything is organised.
However, he said group tour numbers could easily bounce back if tour operators designed more “interactive” packages and marketed them effectively.
“We need programs that are more than just pagoda, restaurant, hotel. People travel to interact with other cultures and experience the differences. Our tour programs are too conventional and don’t allow tourists to have an interactive experience. For example, instead of just getting tourists to watch a Myanmar traditional dance show, we should encourage them to get behind the curtains, talk with the performers or even teach them some rudimentary steps,” he said.
Daw Than Than Swe, manager of Diethelm Travels, said another ongoing factor that would hinder purchases of group packages was the exchange rate, which had made meals and land transportation more expensive this year.
“For the coming [peak] season, I think hotel room rates are likely to rise 15 to 25pc. Most domestic airlines will hike fares 10pc but for some remote destinations it might be even more than 10pc. [Land] transportation [are already] much higher in Mandalay, up about 25pc [since the start of 2011], and in Bagan and Inle up about 10pc,” she said.
This would eat into companies’ profits, because the packages are sold up to 12 months in advance. “We’ve already sold the packages so we can’t increase the price to take into account the changes in the exchange rate.”
Daw Phyu Phyu Mar said exchange rate stability was one of several factors needed to sustain growth in tourist arrivals, and recommended the drafting of a “master plan” for the tourism industry.
“We should not be satisfied with this increase in arrivals; tourist arrival numbers are still very small compared to neighbouring countries,” she said. “We need to examine and open up more sights for tourists, create new activities and attractions, and teach people in newly opened up places how to properly handle tourists.”
According to the Ministry of Hotels and Tourism, only 5525 of the 172,244 tourists who visited the country from January 1 to June 30 came on group packages, down more than 60pc on the same period last year.
However, there was a 40pc increase in foreign individual traveller (FIT) arrivals, which totalled 106,970.
“In my company the number of booking is about the same as 2011 but this year I’ve received more FITs, who book flights and hotels rather than complete packages – I would say total bookings are now about 60-40 in favour of FITs,” said Daw Phyu Phyu Mar, the managing partner of Seven Star Tours in Hlaing township.
She said FITs were usually younger and more adventurous and that if the government reduced restrictions, such as visa and border crossing regulations, “we are likely to see more FITs come to Myanmar”.
Industry sources said the increase in FITs was in large part due to the end of a tourism boycott campaign and positive press following the general election and release of Daw Aung San Suu Kyi in November 2010. The campaign had been particularly effective in Western Europe, the United Kingdom and United States.
Arrivals from European countries totalled almost 40,000 in the first six months of 2011, a 44pc increase on last year, with France (9435 visitors) and Germany (6119) leading the way.
Daw Phyu Phyu Mar said her company has received a “good number” of bookings for the coming peak season, which runs from October through to March 2012.
“We’ve even had enquiries from Balkan states and other countries in eastern Europe such as Romania, Bulgaria and Ukraine. But because of the unstable currency exchange rate, we might see some cancellations later on.”
U Hpone Thant, the former secretary of Union of Myanmar Travel Association, said the figures showed travellers wanted freedom and flexibility, rather than the restrictions of joining a package tour where everything is organised.
However, he said group tour numbers could easily bounce back if tour operators designed more “interactive” packages and marketed them effectively.
“We need programs that are more than just pagoda, restaurant, hotel. People travel to interact with other cultures and experience the differences. Our tour programs are too conventional and don’t allow tourists to have an interactive experience. For example, instead of just getting tourists to watch a Myanmar traditional dance show, we should encourage them to get behind the curtains, talk with the performers or even teach them some rudimentary steps,” he said.
Daw Than Than Swe, manager of Diethelm Travels, said another ongoing factor that would hinder purchases of group packages was the exchange rate, which had made meals and land transportation more expensive this year.
“For the coming [peak] season, I think hotel room rates are likely to rise 15 to 25pc. Most domestic airlines will hike fares 10pc but for some remote destinations it might be even more than 10pc. [Land] transportation [are already] much higher in Mandalay, up about 25pc [since the start of 2011], and in Bagan and Inle up about 10pc,” she said.
This would eat into companies’ profits, because the packages are sold up to 12 months in advance. “We’ve already sold the packages so we can’t increase the price to take into account the changes in the exchange rate.”
Daw Phyu Phyu Mar said exchange rate stability was one of several factors needed to sustain growth in tourist arrivals, and recommended the drafting of a “master plan” for the tourism industry.
“We should not be satisfied with this increase in arrivals; tourist arrival numbers are still very small compared to neighbouring countries,” she said. “We need to examine and open up more sights for tourists, create new activities and attractions, and teach people in newly opened up places how to properly handle tourists.”
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