The challenge ahead

THAT Myanmar is one of the most exciting tourist destinations in the world there is no question. Over the last decade, the Asia Pacific region has been the fastest growing tourism region in the world. But as a country right in the middle of Asia, significant challenges to meet its targets of a more than a million tourists annually. Aggressive tourism campaigns, among other factors, have fueled the significant growth of tourism in countries like Thailand and Malaysia, however Myanmar has been unable to commit significant resources to tourism.

Nevertheless, the only way is up in the Myanmar tourism sector and pundits within the industry expect a high rate of growth over the coming decade. Myanmar has good reason to expect solid tourism growth. A wealthy new middle class of Asians are taking to the skies, joining their European and American counterparts on their trips around Asia, be it for business or pleasure.  But, to capitalise on this there are a number of significant internal factors to take into account. There is an urgent necessity for stronger economic growth, successful tourist promotion, and a recognition that tourism is a powerful engine of growth and a generator of foreign exchange earnings. A quick look around the region confirms the emphasis being laid by governments on attracting tourists. For instance in Thailand, Australia, and New Zealand tourism is the major foreign exchange earner. It is ranked second in Hong Kong, Malaysia and the Philippines, and ranked third in Singapore and Indonesia.  Tourism serves as an important means to increase economic growth, create employment, and improve the overall balance of payments by helping to offset deficits in other sectors.

The relaxation such as the issue of "visa on arrival" for tourists currently is one of the biggest debating points within the sector. The Government has dealt with this by removing some administrative obstacles, making it easier for visitors from Asean countries to travel here. And last year the Government lowered the requirement to change US$300 into local currency on arrival – bringing it down to $200. However, such actions are not enough to keep up with its aggressive regional competitors. Indeed, almost all Asian nations are committing substantial manpower and resources to attracting more arrivals. The truth for Myanmar at this point is that more flights equals more arrivals, which equals more revenue for Government and the private sector. Myanmar should now move with haste to strike agreements with potential carriers to the country and, as a first step, dramatically increase the number of flights from the regional hub of Bangkok. A dedicated airport departure tax, the revenue from which is assigned directly into a national tourism promotion fund, is well and truly warranted. Even the raising of US$1 million would give an immense boost in finances and morale of the sector.

More funds should be allocated for tourism infrastructure in an effort to increase arrivals and receipts by the end of this decade. Myanmar has increasing competition for the tourist dollar, and the national tourism organisations in Myanmar will also have to allocate increased funding to take a slice of this burgeoning tourism market. Rising incomes have also created a middle class of sophisticated and affluent Myanmars who are better educated, have more disposable income, and who appreciate the value of leisure. While a lot has been spoken about attracting the foreign tourists, much more can be done to attract this wealthy class by providing more sophisticated travel and accommodation options at home. Mt Popa Resort and the beach destinations of Ngapali and Ngwe Saung are the first in what will become a greater proliferation of such options. In recent years Myanmar has also become politically more stable than it has ever been. However, continuing social and economic reforms of the government remain crucial to developing a vibrant tourism sector.  Marketing will be absolutely crucial and in light of the increasingly competitive situation from Myanmar’s neighbours, traditional methods of marketing a destination to the masses must yield to more focused market segmentation strategies and themed campaigns.  Marketing campaigns designed to enhance the destination image of Myanmar by focusing on the rich cultural, historical, and natural heritage of the country is obvious. Through creative and innovative product differentiation strategies, Myanmar can create a diverse destination product with an unique appeal that will enrich the visitor experience, provide quality, and maximise the value of the visitor’s leisure time.

Increased emphasis on niche marketing will benefit tourism. The increase in demand for travel is also creating new marketing opportunities in eco-tourism, adventure travel, dive travel, cruises, golf tours, arts and entertainment among others.  Tourism marketers must focus on attracting these high yield markets by differentiating their products and customising them to suit individual needs. Since Myanmar covers a great diversity of cultures and lifestyles, more innovative and creative marketing strategies have to be designed for each source market of visitors.  Finally, the buying power of the currency has major implications for the tourism industry. in the region. Inbound travel will increase as visitors are attracted by their increased purchasing power here. More specifically, visitor expenditures will increase as a result of a longer length of stay and attractive prices.  The profile of the tourists to Asia is changing quickly. No longer is Asia the backpackers’ paradise and a new region to be explored, and the local tourism industry needs to move quickly to re-invent reasons to bring in the high yield visitor. With Asia looking more and more like the West every year, with the same skyscrapers, modernity and comforts, and previous idyllic resorts becoming over-crowded or polluted by unsustainable development, the challenge is really up to the tourism industry as a whole. Myanmar, more than any other Asian country, can position itself extremely well.