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Asia Pacific (http://travel.cnn.com/asia) | Myanmar (http://travel.cnn.com/myanmar)

Myanmar hit by severe hotel shortage

The country is high on the must-see destinations list. But there's simply no room at the inn
By Kate Whitehead
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26 February, 2013
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With Yangon hotel occupancies at peak levels, hotel workers have reason to smile.

Myanmar might be on the hot list of places to visit, but visitors should be wary of touching down in Yangon without a hotel reservation. The surge in visitor numbers in the last few years has vastly outstripped hotel room supply, and the city is struggling to meet demand. Its an issue thats not going away any time soon -- the major hotel shortage is expected to continue for the next five to 10 years. Visitor numbers have been steadily increasing for some time. Between 2009 and 2011, international visitor figures grew about 25 percent each year. Last year saw a 54 percent increase in arrivals, as the country undertook economic and social reforms. More on CNN: Myanmar records one million tourists, surge in tourism income (http://travel.cnn.com/myanmar-records-one-million-tourists-67-percent-increase-tourismincome-037441)

What does all this mean for travelers? Not only do they need to book well ahead, they've got to be prepared to pay comparably big bucks for a room. Two- and three-star hotels are charging more than US$100 a night for average rooms.

Rising accommodation costs

Average daily rates increased 350 percent from 2007 to 2012, according to a report by Jones Lang LaSalle Hotels. The companys senior vice president Andrew Langdon has direct experience. When he visited Yangon in 2011, Shwedagon Pagoda, one of Yangon's most popular tourist attractions. he stayed in a four-star hotel and paid US$70 a night. He returned in December 2012 and paid US$260 for the same room. In the space of about 12 months the rate had gone up almost 400 percent -and its going to go higher, says Langdon. Its a simple matter of supply and demand. In 2012, hotels were running at an average 70 percent occupancy. This year, occupancy is expected to run at 80 percent, according to Jones Lang LaSalle research. Meanwhile, last years room rates were up 50 percent on 2011. That will likely increase another 20-25 percent this year. Myanmars Ministry of Tourism estimates there are 8,000 hotel rooms in Yangon, of which 1,500 to 2,500 are of international standard. The few name brand hotel groups that do have a presence are almost exclusively Asian -large American and European hotel groups have been kept out by strict economic sanctions. Thomas Henseler, general manager of one of Yangons most exclusive hotels, The Governors Residence, recommends guests book at least six months in advance. More on CNN: Myanmar: Is now a good time to go?
(http://travel.cnn.com/explorations/escape/myanmar-now-good-time-go-680954)

Last year was extremely busy with average occupancy for the year going up from 55 percent in 2011 to 75 percent in 2012, says Henseler. Among the current crop of big brand hotels are the Parkroyal from Singapore, The Chatrium Hotel from Thailand and the Sedona Hotel from Malaysia. Hong Kong-based Shangri-La Hotels & Resorts is one player that's ahead of the game. In 1996, the group opened a 22-story property in Yangons central business district -- Traders Hotel Yangon. A year later, the group built two 21-story towers near Kandawgyi Lake, intended as serviced apartments. The project was put on hold as the Asian financial crisis struck, but last year work restarted on the project, which will put 240 two-, three- and four-bedroom apartments on the market. More on CNN: Aung San Suu Kyi draws thousands to Myanmar's first literary festival (http://travel.cnn.com/aung-san-suu-kyi-draws-thousands-myanmars-first-literary-festival137776)

No room at the inn? Build more inns

The Shangri-La apartments are scheduled to be completed in mid-2013, says the hotels general manager Philip Couvaras. The serviced apartment market is strong, according to Langdon. Yangon has only a handful of quality serviced apartments and they're running at 100 percent occupancy, with a waiting list of more than 100 people.

This isn't Bangkok. Showing up and winging it isn't wise in Yangon.

A friend told me that there are lots of new expats being sent there, theyre in their early thirties and theyre being given a US$10,000 per month housing allowance because thats what it costs to rent anything decent there, says Langdon. Other upcoming hotels include the 270-room Centrepoint Towers Hotel, set to open in April, and the 100-room Nawarat Hotel in Hlaing Township, which is also scheduled in the spring. Vivienne Gan, public relations vice president at Langham Hospitality Group, says the group is looking at a number of sites in Yangon. But hotels take time to build -- three years on average -- and even those groups that manage to buy the land soon or do a joint venture hotel still wont be up and running until 2016 at the earliest. The message to tourists is clear: book your accommodation well before you fly, especially during the peak season from November to February. There have been reports of unprepared visitors who have found themselves on the streets or knocking on monastery doors, but this isn't only ill advised, it's against the law. International visitors are required to register with local authorities before they arrive at a private residence. Myanmar Travel agent Nway Nway stresses the importance of booking a hotel room in advance. In truth, we dont allow our tourists to stay in local houses or monasteries for their own security, she says. Have you visited Myanmar recently? Share your experiences in the comments box below.

Kate Whitehead is a Hongkonger and has made the city her home since she was eight. She (/kate-whitehead-521766) escaped for university and returned after her masters degree and was on staff at the Hong Kong Standard and the South China Morning Post. Most recently, Kate was the editor of Cathay Pacifics inflight magazine, Discovery.
Read more about Kate Whitehead (/kate-whitehead-521766)

Tags:

MYANMAR (/SHANGHAI/TAGS/MYANMAR) , HOTELS (/SEOUL/TAGS/ASIA-HOTELS) ,

DESTINATIONS (/BANGKOK/TAGS/DESTINATIONS) ,

ASIA

TRAVEL NEWS (/TOKYO/TAGS/TRAVEL-NEWS)

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8 comments Leave a message...

Newest Community Mit c h
4 months ago

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Recently came back from Myanmar and its true..Prices are outrageous..Usually could get by with only a room with a fan but when its 40C, AC was needed..Paid 60 to 100 dollars for a room that would cost you 30 to 40 dollars in Vietnam..Since Obamas visit, prices have skyrocketed..A beautiful country with even nicer people,all this will soon change..Some say myanmar is like Thailand was 40 years ago..
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moriac

4 months ago

Try getting to mrauk oo and you will see how free the country is long live the moustache brothers in mandalay
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moriac

4 months ago

Travel free stay in small places where the profit doesn't go to the generals try royal ruby yangon
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5 months ago

Ric hard Nay Lin

US 10000 per month for sevice apartment ? This is totally wrong. You only have to pay about 3000-4000 USD at most for best ones. For a standard apartment, you only have to spend 1200-2000 USD per month.
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Mas aru Tak ek awa

6 months ago

Davidji

It's true that rent is getting expensive but not that extreme of $10,000 a month, yet. If you are looking for a decent apartment for 10 to 20 minutes drive from downtown, I am finishing to furnish one in western standard and rent will be $4000 a month now.
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6 months ago

Its the same in any country going through a resources and tourism boom. In Papua New Guinea you can pay U.S $250.00 a night for a very ordinary room, assuming the hotel isn't full, and a couple of thousand a week for a very ordinary apartment. New apartments are running well over a million dollars. Check before you book a trip to these places.
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verahue@hot mail. c om

6 months ago

This quote: A friend told me that there are lots of new expats being sent there, theyre in their early thirties and theyre being given a US$10,000 per month housing allowance because thats what it costs to rent anything decent there, That's a nonsense quote and silly to print it. I live in Yangon. Some people might also say you can't get anything "decent" in Toledo for under $10,000 a month.
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S hout Travel

6 months ago

"the 270-room Centrepoint Towers Hotel, set to open in April". This hotel will not open before October at earliest.
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