Proudly prepared by:

Proudly prepared by:

2012-13 2013-14 2014-15 2015 (April to Dec) Agriculture 10 20 40 0 Fisheries 6 89 27 0 Mining 15 33 6 2 Manufacturing 401 1,827 1,502 724 Power 364 47 40 47 Oil & Gas 309-3,220 2,049 T&C - 1,190 1,679 1,599 Hotel and Tourism 300 435 358 113 Real Estate - 441 781 240 Industrial Estate 10 Others 15 16 357 132 Total 1,419 4,098 8,011 4,916 Source - DICA

2012-13 2013-14 2014-15 2015-16 ( Till Dec'15) China 232 56 511 670 India 12 26 209 222 Japan 54 56 86 197 Singapore 418 2,300 4,297 2,998 Thailand 1 529 166 88 Malaysia 4 616 7 9 ROK 38 81 300 35 USA - - 2 3 UK 233 157 851 59 Vietnam 329 142 175 3 Taiwan - 1 5 6 Hongkong 85 107 626 145 Total 1,419 4,098 8,011 4,916 Source - DICA

MYANMAR TOURISM INDUSTRY (2014) REVENUES $ 1.78 billion TOURISM FDI $2.4 billion INT L VISITORS 989,000 people AVERAGE EXPENDITURE PER DAY $170 AVERAGE LENGTH OF STAY 9 days OUTBOUND TOURISTS 565,000 people HOTEL ROOMS 43,000 rooms HOTEL ROOMS IN YANGON 13,000 rooms

Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Earnings (USD m) 164 182 165 196 254 319 534 926 1,789 Average Expenditure per person per day 94 98 95 95 102 120 135 145 170 Hotel Landscape in Myanmar S. No Place Number Rooms 1 Yangon 287 13,146 2 Mandalay 142 5,809 3 Naypyidaw 58 4,884 4 Bagan 77 2,484 5 Nyaung Shwe 66 2,004 6 Ngwesaung 23 1,264 7 Tachileik 25 1,135 Total 1,106 43,243

2012-13 2013-14 2014-15 2015 (April to Dec) No Of Ventures Amount No Of Ventures Amount No Of Ventures Amount No Of Ventures Amount 1 300 5 435 5 358 1 113

Ngwesaung 2% Chaungtha 1% Ngapali 2% Nyaung Shwe 9% Bagan 16% Yangon 54% Mandalay 16% Tourists to Myanmar by Type Packaged Tours 23% Foreign, Independent Travellers 42% Business Trip 20% Social & Others 15% Source: NCRA Research

< 20 20-50 > 50 Age Male Female Gender Package Independent Business Social Type of Travel 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: NCRA Research

1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Ministry of Hotel & Tourism

Type 2008 2009 2010 2011 2012 2013 Package Tours, Yangon 48,656 66,552 87,932 103,590 131,115 148,557 Foreign Independent Travelers, Yangon 61,884 79,074 109,222 134,956 232,715 294,218 Business Travel, Yangon 36,392 42,553 48,549 69,943 114,456 151,320 Entry Visa, Yangon 21,827 26,217 28,240 33,273 37,778 45,556 Others 19,007 20,021 23,303 22,981 43,546 178,038 Yangon Total 187,766 234,417 297,246 364,743 559,610 817,689 Package Tours, Mandalay 2,278 2,847 4,817 12,786 16,109 50,065 Foreign Independent Travelers, Mandalay 2,944 5,555 8,257 12,844 16,346 19,653 Business Travel, Mandalay 186 205 104 196 244 529 Entry Visa, Mandalay 145 254 264 607 1,072 12,215 Mandalay Total 5,553 8,861 13,442 26,433 33,771 82,462 Border Entry (Muse) 76,676 65,591 67,531 58,935 57,999 97,220 Border Entry (Moreh) 0 0 0 0 0 31,242 Border Entry (Myawwaddy) 309,152 295,337 265,588 236,312 230,298 752,839 Border Entry (Kawthoung) 152,083 158,341 147,698 129,946 177,317 262,845 Total 731,230 762,547 791,505 816,369 1,058,995 2,044,297 Source: Ministry of Hotel & Tourism

160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Thailand China Japan South Korea United States Malaysia Singapore France 2008 2009 2010 2011 2012 2013 Majority of international visitors are from neighbouring countries. Around 15% of visitors are from Thailand, and 12% are from China. In total, two-thirds of international visitors to Myanmar come from other Asian countries. Source: Ministry of Hotel & Tourism; NCRA Research

% of total supply in Myanmar 2013 30% 29% 25% 20% 11% 13% 11% 10% 8% 8% 5% 7% 6% 0% Hotels Rooms Yangon Mandalay Bagan Taunggyi/Inle Lake Naypyitaw

2014 Border Visitors 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - Muse Moreh Myawaddy Kawthoung Tachileik Four border gates between Thailand and Myanmar Myawaddy-Mae Sot, Htee Khee-Phunaron, Kawthaung-Ranong Tacheleik-Mae Sai Mae Se in Kayah under development

No of Tourist 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - Yangon Mandalay Naypyitaw Mawlamyine

Hong Kong 5% Others 2% Japan 12% Thailand 15% Singapore 38% Vietnam 28% Hoang Ang Gia Lai (HAGL) One of the largest investors is Vietnam s HAGL, which has invested $440 million in Yangon property market. The mixed-use HAGL Centre in Yangon developed on an eight-hectare land in two phases. The first phase includes a 412-room hotel which will be operated by Spanish hotel chain Melia Hotels International

French hotel-chain Accor is the most aggressive entrant to hospitality sector in Myanmar. Its investments in Myanmar are: 366-room Max Novotel in Yangon 121-room Inlay Lake Myat Min Hotel, which opened in Jan 2014 300-room Pullman Yangon Myat Min Hotel, to be opened in 2016 100-room Sebel Yangon Myat Min long-stay Hotel, near the Yangon International Airport, to be opened in 2016 280-room Novotel Mandalay Mingalar Hotel, to be opened in 2016 168-room MGallery Hotel in Naypyidaw

Hotel Traders Hotel Sedona Hotel Novotel Hotel Park Royal Hotel Chatrium Hotel Inya Lake Hotel Kandawgyi Palace Hotel Green Hill Hotel The Governor s Residence The Strand Hotel The Savoy No. of Rooms Operator 496 Shangri-La International Group 366 Keppel Land 366 Accor Group 359 Pan Pacific Hotel Group 303 Chatrium Hotels and Residences 239 General Hotel Management 208 Htoo Trading [SDN] 108 Best Western 48 Orient Express Hotel 32 General Hotel Management 30 Uniteam Marine

Accommo dation Transport Tour Food Retail Service Hotel Buses Operator Restaura nts Hotel Shops Outlets Resorts Airlines Guide Tea Shops Souvenir Ships SMEs B&B,Inns Cruises Car Rental Street Vendors Markets Internet Cafes Homesta ys Taxis

Cultural Nature Adventure Cruise & Yacht MICE

Travel & Tourism GDP Contribution (US $ bn) 90 80 70 60 50 40 30 20 10 0 Indonesia Thailand Malaysia Philippines Vietnam Cambodia Myanmar Source : World Travel & Tourism Council (WTTC)

No of Tourist 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - Thailand Cambodia Malaysia Vietnam Laos Myanmar Source : World Travel & Tourism Council (WTTC)

Scenario Conservative Mid -Range High 2015 2020 2015 2020 2015 2020 International Arrivals 1,087,900 1,752,074 1,186,800 2,953,138 1,285,700 4,773,714 Daily Spending ( USD) 170 200 170 200 170 200 Length of Stay (Days) 9 9 9 9 9 9 Total Spend (USD) 1,664,487,000 3,153,732,892 1,815,804,000 5,315,648,717 1,967,121,000 8,592,685,382 10 % 20 % 30 % McKinsey predicts that Myanmar will attract 13.5 million visitors staying an average of seven nights by 2030. Assumptions are that tourist arrivals will increase at 27 percent each year for the first six years starting in 2010 and then at 18 percent each year to 2030. (This was the growth rate Cambodia experienced between 2000 and 2010). By 2030, tourism services could contribute $14.1 billion to GDP and employ around 2.3 million people, according to McKinsey report.

Vessal Itinerary Length of Trip RV Mahaythi Yangon-Twante-Yangon DayTrip RV Mahaythi Yangon-Maubin-Yangon 1/2 RV Mahaythi Yangon-Maubin-Kyaiklat-Phyarpon-Yangon 1/2 RV Mahaythi Yangon-Maubin-Sabaeyoo-Pathein-Ngwesaung 3/4 RV Mahaythi Yangon-Pyay 8 RV Mahaythi Pyay-Bagan 6 RV Mahaythi Bagan-Kalewa 7 RV Mahaythi Bagan-Mandalay 3 RV Mahaythi Mandalay-Bamaw 6 RV Mahaythi Mandalay-Pyay 8 RV Mahaythi Pyay-Pathein, NgweSaung 8 RV Mahaythi Pathein-Yangon 4 RV Pandaw 1947 Mandalay-Bagan 4/5 Pandaw II Yangon-Mandalay 13 Pandaw II Mandalay-Bagan 8 Pandaw II Mandalay-Pyay 8 Malikha Mandalay-Bagan ½ PV Paukan Bagan-Mandalay ½ Pandaw 1947 Yangon-Bagan-Mandalay-Sagaing 5 Pandaw 1947 Yangon-Prome-Magwe-Mingun-Sagaing 10 Pandaw 1947 Mandalay-Bamaw-Mandalay 8 Road to Mandalay Mandalay-Bhamo-Bagan 11 Road to Mandalay Mandalay-Bagan-Mandalay 7 Road to Mandalay Bagan-Mandalay-Bagan 7 Road to Mandalay Bagan-Mandalay 4 Road to Mandalay Mandalay-Bagan 3

No. of River Cruise Income per passenger Net Income (US$) Passengers (US$) 2009 1,438 345,896 $240 2010 4,547 1,203,945 $265 2011 12,437 1,735,290 $140 2012 14,635 2,341,315 $160 2013 15,809 4,906,305 $310 2014 18,077 8,416,289 $465 Yachting Tours There are twenty -one licensed yachting tours in Myanmar. No. of Yachting Tour Visitors Net Income (US$) Income per Yachting Tourists (US$) 2009 1,444 192,800 134 2010 1,417 139,410 98 2011 1,091 121,860 112 2012 1,158 155,392 134 2013 2,157 257,051 119 2014 2,562 387,462 151

In early 2013, FMI and Yoma Strategic took over 75% stake in Shwe Lay Ta Gun, the operator behind Balloons over Bagan. The 75% stake cost $10.7 million a multiple of 7.5x earnings. Balloons over Bagan was founded in 1999 and has eleven balloons in operation. Oriental Ballooning Myanmar owned by Amata Group flights in Mandalay,Bagan, Inle, Pindaya & Ngapali. In addition, Golden Eagle Ballooning, which is a subsidiary of Golden Express Tours, which is the first balloon tour operator in Myanmar since 1999.It operates three balloons in Bagan The Department of Civil Aviation in Myanmar has warned that it will only maximum of 20 balloons in one destination.

revenues ($) 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000-2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 No. of Ballooning Tourists % CHG Net Income (US$) Income per Ballooning Tourist (US$) Ballooning Tourists as % of Total Int l Visitors to Myanmar 2009 2,940 NA 719,586 245 1.21% 2010 4,886 66% 977,200 200 1.58% 2011 5,919 21% 1,441,651 244 1.52% 2012 8,024 36% 1,979,014 247 1.36% 2013 11,362 42% 3,109,856 274 1.46%

S No Route No Of Flights Capacity Occupied Occupancy Rate 1 Bangkok -Yangon 5,362 999,011 595,359 59.59% 2 Singapore -Yangon 2,302 422,741 304,444 72.02% 3 KL-Yangon 1,516 242,016 174,007 71.90% 4 Kunming -Yangon 756 101,610 54,501 53.64% 5 Nanning-Yangon 64 7,680 3,006 39.14% 6 Guangzhou-Yangon 360 47,730 30,512 63.93% 7 Taipei-Yangon 300 47,400 35,380 74.64% 8 HK-Yangon 245 42,140 32,990 78.29% 9 Kolkata-Yangon 103 14,832 9,503 64.07% 10 Gaya-Yangon 150 24,024 18,761 78.09% 11 HCMC-Yangon 151 27,784 19,897 71.61% 12 Chiangmai-Yangon 173 11,418 6,551 57.37% 13 Chiangmai-Mandalay 42 2,940 890 30.27% 14 Seoul -Yangon 515 104,994 60,820 57.93% 15 Tokyo-Yangon 365 73,730 41,360 56.10% 16 Doha-Yangon 208 22,880 19,365 84.64% 17 Dhaka-Yangon 101 16,362 5,454 33.33%

2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2008 2009 2010 2011 2012 2013p Source: MOHT, NCRA

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2008 2009 2010 2011 2012 2013p Source: MOHT, NCRA

Airline Airline Code Date of Establishment Fleet Size Air Bagan [SDN list] W9 2004 6 Air KBZ K7 2010 6 Asian Wings Airways YJ 2010 4 Air Mandalay 6T 1994 3 Myanma Airways UB 1948 12 Myanmar Airways International 8M 1998 9 Yangon Airways [SDN list] YH 2011 3 Golden Myanmar Airlines Y5 2012 3 FMI Air (Charter) FMI 2013 3 Yadanarpon Airlines 7Y 2014 2 APEX Airlines SO 2015 2 TOTAL 53 Source: NCRA Research

The main domestic route is between Yangon and Mandalay, followed by the route between Yangon and Heho. Over 250 flights are made between Yangon and Mandalay per week in peak season, Over 150 flights are made between Yangon and Heho. Over 800 domestic flights are made weekly in Myanmar. Most planes are ATR short haul planes. Average occupancy rates of 80%, Taking into account seasonality, over 2.5 million seats are flown and over 2.2 million passengers are served on Myanmar s domestic air route annually.

Town Agoda Travelocity Lonely Planet Tripadvisor Airbnb Asia Web Direct Yangon 107 11 23 62 14 8 Mandalay 38 40 2 Bagan 33 1 Nay Pyi Daw 24 Nyaung Shwe 31 Ngwesaung 7 Pyin Oo Lwin 19 Ngapali 14 Kalaw 16 Kyaikhto 4 Total 354 12 19 232 14 11 Source: NCRA Research

Connectivity Human resource Infrastructure

Mandalay Inle Golden Rock Bagan Yangon Ngapali

Myiek Pyin Oo Lwin Putao Kalaw Ngwe Saung Hpa-An

Source : World Travel & Tourism Council

1) Industry-led Hotel School The project, to be supported by Singapore s Hotel and Tourism Education Centre, involves the development and management of a hotel school to provide quality pre-employment training and education for local residents 2) Dusit Hotel School and Hotel, Yangon The project includes the construction of a privately operated tourism and hospitality training facility and associated hotel 3) Tourism University in Yangon The project will strengthen the tourism department at Yangon University to improve national tourism education standards and expand access to quality higher education in tourism 4) Kaw-Hmu Hospitality and Catering Training Academy This project aims to help youth in Kaw-Hmu Town become skilled, independent, and successful leaders in the hospitality industry.

1) Number 4,846 Licensed tour guides 2,296 English 138 Thai 131 Chinese 2) Training Controlled by the central government Conducted by the Tourism Training School under the Ministry of Hotels and Tourism The 10-week accreditation training costs USD 1000 3) Private Training Quality Issue No Hands- On experience No practical standards of short courses Focus on shorter, more-focused & intensive training

1) Ecotourism Development This project will develop a National Ecotourism Strategy to promote forms of tourism that support biodiversity conservation, local income generation 2) Support for Handicraft and Organic Food Production producers of handicrafts and local food and beverages to improve skills and processes related to the quality, design, production, packaging, and marketing of their products 3) Lac Kwin Tourism Project, Pindaya generate income and employment opportunities for local residents by diversifying Pindaya s tourism offerings and strengthening linkages between tourism and agriculture.

1) Develop river piers and seaports with passenger facilities at key locations Bagan, Inle Lake, Kawthaung, and Mandalay) prepare feasibility studies for development of river piers and seaports that are linked to destinations 2) Direct International Flights prepare a review of current policy on international flights into the two airports- Bagan and Heho assess the capacity of tourism-related management systems and the accommodation subsector to cope with direct flights from international sending markets 3) Upgrade domestic airport terminals and services based on the recommendations of the aviation industry review upgrade infrastructure and services at domestic air terminals; promote public private partnerships for the management and upgrading of terminals or development of new facilities

billyselig@newcrossroadsasia.com +95 (0)9 2501-51557 fatinmattar@newcrossroadsasia.com +65 9172-8080 vijaydhayal@newcrossroadsasia.com +95 9255-901514