Yangon's upper-scale hotel room stock further increased to more than 4,800 rooms and room rental rate is 47 per cent which is a two per cent increase compared to last year rental rate in the same period, according to 2018 Second Quarterly Market Report made by Colliers International Myanmar.
The citywide occupancy rate has improved by 6% from the same period last year. Occupancy managed to also increase and was able to reach a level nearing the 50% mark. Myanmar will loosen the visa restrictions for tourists from China, Japan and South Korea from October and is expected to see increase foreign tourists’ arrival around two or four per cent in this year.
More travellers especially from Thailand and China will be attracted in this year amid the government's tourism development plans and initiatives. At present, there are about 4,800 upscale hotel rooms in Myanmar and another 1,200 hotel rooms will be available in this year.
The latest completed developments are LP Holdings’ Pullman Hotel and Shwe Oak Khai Co.,Ltd.’s Spring Line Hotel. At the present, there are about 12 hotel projects being developed and about 3,300 hotel rooms will be available between 2018 and 2020.
Room rates are on the decline due to the lower numbers of tourists visiting Yangon but it does not affect the whole market as number of tourists with business visa was increased. Tourists from West Europe, East Europe, Middle East and Africa had declined significantly and hotels are dependent on travellers from Asia.
The quality, room design and services will be important for new hotels and room rates of the old hotels will be more declined than new ones. Average occupancy rate in second quarter of 2018 is nearly US$150.
Occupancy rate had 46 per cent in third quarter of 2017, 52 per cent in first quarter of 2017 and 47 per cent in second quarter of 2018. Colliers advised that hotels need to make their target mainly to tourists from Thailand, China, Japan and South Korea, tourists with business visas, tourists came with travel agents and tourists with plenty of money.