A recent announcement confirms that the forecasts made in June, during the third annual Hospitality and Tourism Conference are absolutely right. “Unprecedented growth in tourism and business visitors will spur demand for hotel space”. Now, just 6 months after the event, which was held in Naypyitaw, Myamnar, foreign investment in hotel projects has risen to approximately $2.7billion.
Singapore is the largest investor to-date with US$1.53billion, followed by Vietnam and Hong Kong. There is also significant investment from the United Kingdom and the United Arab Emirates.
It is not surprising to see Singapore heading this list. Singapore is often used as a conduit for other nation’s investments. You may have seen our recent blog reporting Singapore as the winner, again, in the World Bank annual survey. This is due to many factors including bank facilities, ease of doing business, regional hub head offices, access to funding and excellent bilateral links. Our offices in Singapore work with many of these companies and indeed together we introduce and help companies to benefit from opportunities in Myanmar and help them establish a presence here.
The growth in investment in Myanmar is significant. The number of hotel projects has risen from 36 to 47. In 2010 there were 791,000 foreign tourists. In 2014, 3 million. In 2014 there were 820,000 visitors to Yangon (approximately 50 percent growth on figures for 2013). Forecasts for visitor numbers to the country now approach 5 million. The Myanmar Ministry for hotels and tourism have confirmed there were 3.5 million visitors in 2014 generating over US$1 billion.
Reports show there are 1186 hotels and guesthouses with approximately 47, 000 rooms. This shortfall is itself fuelling further business visitors, here to review investment opportunities. Many are our clients establishing a presence in Myanmar. The investment projects are substantial. You may have seen one of our earlier blogs announcing the US$550 million investment in the HAGL Myanmar Project.
Investment in industry has also risen fast as investors are increasingly confident in Myanmar’s future prosperity.
FocusCore is at the forefront helping companies, investors and staff to move to Myanmar. We decided to open offices here in early 2014, knowing companies would be increasingly pressed for time to establish a presence in Myanmar. We make your move efficient and also provide valuable insight into the rules and regulations and practises to allow you to focus on your business and thrive.