|
|
|
Myanmar introduces rate cap for hotels
Rahul Khanna, Yangon, July 6, 2012 |
| |
|
MYANMAR’s Ministry of Hotels & Tourism has introduced a rate cap of US$150 per room per night for hotels under its Foreign Direct Investment (FDI) scheme.
The ministry implemented the rate cap in the wake of complaints from both local and international travel companies about how indiscriminate room pricing was harming the image of Myanmar’s tourism industry (TTG Asia e-Daily, May 4, 2012).
Minister of Hotels & Tourism, U Tint Hsan, also warned that hotel room rates in Myanmar should not be overpriced compared to neighboring countries – especially those in ASEAN.
“If the FDI hotels fail to follow the ministry’s ruling, we will take some serious steps such as not recommending the visa extension of general managers from FDI hotels, and will also review the extension of the lend lease period,” he said.
Ma Sabei Aung, managing director, Nature Dream Travels & Tours Burma, said: “My company lost many tour bookings due to this unpleasant situation. How can we sell our tours if (the hotels) are increasing their room rates so frequently?”
“We were really worried that we would lose our partner agents from overseas if this situation was allowed to continue,” she added. |
| |
|
| |
| RATE THIS ARTICLE |
|
|
| |
| COMMENTS |
|
|
It is called \"supply and demand\" ... Does one see Hong Kong, Singapore or Bangkok limiting hotels what they can charge a guest or meeting planner? Hotels have been making little or no real profit in Myanmar for years and the tour operators have been taking advantage of this situation to excel in business ... Now the moaning starts and the in-bound agents raise enough stink to have the government intervene relative to pricing caps. Travel organizations always demand lower rates when the tourist situation in a country is bleak and when things turn around the agents demand that rates stay the same because \"we supported the hotels when they needed business\". There is no loyalty from either the supplier or the provider. This is a shame! Rate caps will not encourage other hotel companies to invest but they might ... The more hotels then the greater the supply and in turn reduction in rates that the operators are moaning about. |
|
Posted by: Kent Maury |
06-07-2012 20:14:35 |
|
|
|
This is great news. As tour operators with a new (and successful) program to Myanmar, we were going to cancel our program due to the draconian measures imposed by these hotels. We were facing a huge increase in cost, plus requirements of large non-refundable deposits on space, all of this without a single guarantee from hotels to honor their contracts. No serious tour operators can serve their clients these conditions. Let\'s hope the new rules control these outrageous opportunistic practices, so we can continue promoting Myanmar as the great Asian destination that it most certainly is! Peggy M. Goldman, President, Friendly Planet Travel, Inc. www.friendlyplanet.com |
|
Posted by: Peggy M Goldman |
06-07-2012 23:45:37 |
|
|
|
As a tour operator favouring Myanmar, I concur with hotels now cashing in by increasing their room rates - but there must be a reasonable ceiling. The Park Royal Hotel in Yangon was doing good formerly selling its rooms at US$55 per night including a good buffet breakfast. Suddenly the room rate shot up to US$250. Is this reasonable? By all means up 100% to make up for the old woes; but increasing it by 5 times is scandalously greedy and reprehensibly opportunistic. Every hotel in Yangon had a merry and drastic upswing since two months ago. And the reservation always tried to sell the higher category rooms by saying the standard/superior/deluxe rooms are fully booked. A big kudo for the Ministry of Tourism in putting a brake on spiraling free-for-all room prices. (seaover@ksc.th.com) |
|
Posted by: Gilbert Khoo |
07-07-2012 01:03:57 |
|
|
|
Kent, understood, but the rate increases should occur gradually and not so abruptly. Most importantly, hotels should never invalidate contracts they\'ve agreed to. Operators have already booked tours at set prices before the hotel increases, so when hotels cancel the contracts and raise rates, operators are left holding the bag. If investment is to come, certainly declaring contracts mean nothing is not the best way to start?
Patrick Morris
Indochina Travel
www.indochinatarvel.com |
|
Posted by: Patrick Morris |
07-07-2012 01:29:44 |
|
|
|
Myanmar government should also introduce other measures to resolve the problem. Rate cap should only be temporary while new hotels are being built. I watched on news few months ago about how a 20 floors hotel was built in 15 days in china. So, given today \'s technology, I would assume 6 months would suffice to build new hotels to increase supply. Government should also build some hotels under a scheme for 2013 sea games and dispose them to private hands after the game like UK is doing with its stadiums of 2012 olympics. The new hotels should be built aiming for business travellers and tourists with low budget. In my opinion, Myanmar needs hotels like premier inns and imbs hotels instead of luxury ones. |
|
Posted by: Zack |
07-07-2012 07:19:43 |
|
|
|
| << First < Prev | [ 1 ] | Next > Last >>
|
|
|
| |
|
|
|
|
