Investment Opportunities In Hotel Industry in Myanmar Presentation by: Mr. Aung Myo Min Din Chairman of Myanmar Hotelier Association Tel and Fax: 09-5506609, 01-502906 ~ 7 E-mail: chairman@myanmarhotelier.org Website: www.myanmarhotelier.org
International Air Routes to Myanmar 1 Air Asia 2 Air China 3 Air India 4 Air KBZ 5 All Nippon Airways 6 Bangkok Airways 7 Biman Bangladesh Airlines 8 Cathy Dragon Air 9 China Airlines 10 China Eastern Airlines 11 China Southern Airlines 12 Emirates Air 13 Himalaya Airlines(H9) 14 Hong Kong Express Airways 15 Jet Star Air 16 Korean Airlines
International Air Routes to Myanmar 11 China southern Airlines 17 Malaysian Airlines 12 Dargon Air 18 Malindo 13 Jet star Asia 19 Myanmar Airways 14 Korean Air International 15 Malaysia Airlines 20 Myanmar National Airlines 21 16 Nok Air Myanmar Airways International 22 17 Qatar Nok Airways 23 18 Scoot Qatar Airllines 24 19 Silk Air Silk Air 25 20 Singapore SingaporeAirlines 21 Thai Airways 26 Thai Air Asia 22 Thai Air Asia 27 Thai Airways International 23 Thai Smile 28 Thai Smiles Airways 24 Tige Air 29 25 Thai Lion Vietnam Airlines Airlines 30 Vietjet Air 31 Vietnam Airlines Tige Air
Domestic Flights in Myanmar Myanmar National Airline Operate to Domestic Airport ATR-72, ATR-42, MA60, Beech 1900D, ERJ 190 - MannYadanarpon Airline(since 2013) Operate to Domestic & International Airport ATR 72-600 Yangon Airways (since 1996) Operate to Domestic Airport ATR-72 Air KBZ (since 2010) Operate to Domestic Airport ATR-72 Asian Wings (since 2010) Operate to Domestic Airport ATR-72, A321 FMI Air (since 2012) Operate to Domestic & International Airport CRJ200,ATR 72-600 Golden Myanmar (since 2013) Operate to Domestic Airport Airbus A320 - Air Mandalay (since 1994) Operate to Domestic Airport ATR-72, ATR-42 Apex Airline(since 2015) Operate to Domestic Airport ATR 72-600
Visitor Arrivals List Cambodia Malaysia Myanmar Philippines Singapore Thailand 2017 Jan-Jun Jan-May Jan-Jun Visitor Arrivals:Jan-Aug AOR:2016 Jan-Aug Jan-Jun Visitor Arrivals 2,662,679 10,820,000 1,760,000 4,470,880 11,734,650 17,323,640 AOR(%) N/A 72.80 44.0 66.08 90.00 75.97 Room Comparison of the countries Cambodia Malaysia Myanmar Philippines Singapore Thailand Area 181,03598km 2 330,803km 2 676,578km 2 300,000km 2 7,191km 2 513,120km 2 Hotel Rooms Supply As at Dec 2016 As at Sep 2017 As at Dec 2016 As at Dec 2016 Accredited Hotels Only As at Dec 2016 As at Dec 2016 Total no. of Hotels 647 3,264 1,432 482 413 9,287 Total no. of Hotel Rooms 36,236 241,350 56,429 55,638 63,850 390,000
International Visitor Arrivals to Myanmar Name Of Entry Points 2013 2014 2015 2016 2017 (Jan-August) Yangon Entry Point 817,699 1,022,081 1,180,682 1,180,144 728,010 Mandalay Entry Point 69,596 90,011 107,066 128,387 96,921 Mawlamyine/ Myeik/ Muse/Tachileik/ Myawaddy/ Tamu/Hteekhee 1,024 271 47,841 25,429 Nay Pyi Taw 11,842 19,261 13,835 16,224 11,024 Border Tourism 1,144,146 1,949,788 3,379,437 1,634,611 1,417,854 TOTAL 2,044,307 3,081,412 4,681,020 2,907,207 2,279,238 GROWTH 93% 51% 52% -38% 22%
Hotels, Motels and Lodging-House Business Licenses Hotel Apartment Rooms Local Investment 1486 54595 Foreign Investment 27 4842 State Own Hotel (Lease Out) 21 968 J.V 6 1137 Total 1540 61542
FDI Hotels in Country wide (Total) Sr. City Project Rooms Investment USD in Million 1 Yangon 43 9072 3648.2044 2 Mandalay 3 618 81.7300 3 Kawthaung 3 106 46.5310 4 Tachilake 3 290 37.2500 5 Nay Pyi Taw 1 88 9.0000 6 Bagan 1 127 22.0000 7 Myeik 4 440 51.5800 8 Dawei 1 800 125.0000 9 Pathein 1 155 16.0300 10 Kalaw 1 80 5.52 Total 61 11776 4042.8454
Permitted FDI Hotels Sir. Projects Rooms Investment US$(m) Remarks 1. 33 6241 1749.772 Completed 2. 11 2296 993.4454 Under Construction 3. 17 2670 1299.4088 MIC Permitted 61 11776 4042.4854
FOREIGN INVESTMENT IN HOTELS AND COMMERCIAL COMPLEX Sr. Country Number of Project Investment (USD in million) Remark 1. Singapore 31 2712.4834 2. Thailand 12 486.1610 3. Vietnam 1 440.0000 4. Hong Kong 5 187.7000 5. Korea 1 100.0000 6. Japan 4 73.6650 7. Malaysia 3 23.1360 8. United Kingdom 3 14.5000 9. Luxembourg 1 5.2000 Total 61 4042.8454
Top 10 Visitors by Nationality in 2011 No Country Pax % 1 CHINA 62018 15.85 2 THAILAND 61696 15.77 3 MALAYSIA 23287 5.95 4 KOREA 22524 5.76 5 JAPAN 21321 5.45 6 TAIWAN 15542 3.97 7 SINGAPORE 15391 3.93 8 INDIA 12318 3.15 9 HONGKONG 3280 0.98 10 BANGLADESH 1988 0.51 Source: www.myanmartourism.org
Top 10 Visitors by Nationality in 2012 No Country Pax % 1 THAILAND 94342 15.90 2 CHINA 70805 11.93 3 JAPAN 47690 8.04 4 KOREA 34805 5.87 5 MALAYSIA 30499 5.14 6 SINGAPORE 26296 4.43 7 TAIWAN 22060 3.72 8 INDIA 16868 2.84 9 HONGKONG 4826 0.81 10 BANGLADESH 1737 0.29 Source: www.myanmartourism.org
Top 10 Visitors by Nationality in 2013 No Country Pax % 1 THAILAND 139770 15.53 2 CHINA 90550 10.06 3 JAPAN 68761 7.64 4 KOREA 54934 6.10 5 MALAYSIA 39758 4.42 6 SINGAPORE 39140 4.35 7 TAIWAN 30699 3.41 8 INDIA 21042 2.34 9 HONGKONG 7874 0.87 10 BANGLADESH 1981 0.22 Source: www.myanmartourism.org
Top 10 Visitors by Nationality in 2014 No Country Pax % 1 THAILAND 198229 17.52 2 CHINA 125609 11.10 3 JAPAN 83434 7.37 4 KOREA 58472 5.17 5 SINGAPORE 47692 4.21 6 MALAYSIA 46534 4.11 7 TAIWAN 32664 2.89 8 INDIA 32306 2.85 9 HONGKONG 8522 0.75 10 BANGLADESH 3654 0.34 Source: www.myanmartourism.org
Top 10 Visitors by Nationality in 2015 No Country Pax % 1 THAILAND 204539 15.71 2 CHINA 147977 11.37 3 JAPAN 90312 6.94 4 KOREA 63715 4.90 5 SINGAPORE 45125 3.47 6 MALAYSIA 40852 3.14 7 TAIWAN 31735 2.44 8 INDIA 34628 2.66 9 HONGKONG 4237 0.33 10 BANGLADESH 2913 0.22 Source: www.myanmartourism.org
Top 10 Visitors by Nationality in 2016 No Country Pax % 1 THAILAND 243443 19.13 2 CHINA 183886 14.45 3 JAPAN 100784 7.92 4 KOREA 64397 5.06 5 SINGAPORE 50198 3.94 6 VIETNAM 48869 3.84 7 MALAYSIA 43931 3.45 8 INDIA 38537 3.03 9 THAIWAN 36118 2.84 10 PHILLIPPINE 16421 1.30 Source: www.myanmartourism.org
Myanmar Investment Commission Notification No. 13/2017 (1 st April 2017) In exercise of the power conferred under section 43 and sub-section 100 of the Myanmar Investment Law, the Myanmar Investment Commission has prescribed the investment promoted sectors with the approval of Union Government Classification of Promoted Sectors 1. Providing services by construction of hotels and resorts (ISIC 55102) 2. Transport services for tourists and sight-seeing (ISIC 5011) 3. Eco-tourism business (ISIC 50111)
Procedures /salient points for FDI in Hotels and Related Businesses 100% foreign owned Build-Operate-Transfer (BOT) System. Hotel Business can be done in JV with Government Organizations/ local citizens Land Lease Period: Initial (50)yrs + extendable (10) yrs x (2) times with MIC s permission Construction Period: (2) to (3) yrs for phase 1 (2) to (3) phases Land Use Premium: Depends on Location and Area of Land Annual Land Lease Rental Fee: (5)% of Gross Income (or) Minimum Guarantee Payment whichever is higher.
Procedures /salient points for FDI in Hotels and Related Businesses After having the agreement between the investor and government organization (or) private sector on the terms and conditions, the both sides have to draft B.O.T Contract and Lease Agreement. The draft BOT Contract- To be submitted to the Union Attorney General s Office for legal advice. Need to submit proposal of the promoter to make foreign investment in Myanmar to MIC with the draft B.O.T Contract, Lease Agreement and other required documents.
Procedures /salient points for FDI in Hotels and Related Businesses After having the Permission of Myanmar investment Commission, the BOT Contract and Lease Agreement shall be signed by the both parties. Apply for prior permission to establish Hotel Business from Ministry of Hotels and Tourism. Implement the construction of project. Obtain the license to operate the hotel business.