Myanmar's domestic tourism rises, but foreigners still scarce

Effects of pandemic and 2021 coup still hinder once vibrant travel sector

Myanmar tourists visit Bagan, an ancient city in central Myanmar.

Myanmar tourists visit Bagan, an ancient city in central Myanmar.

More than two years after Myanmar's military seized power in a coup, domestic travel demand is recovering in the Southeast Asian country.

During the long holiday period celebrating the country's New Year water festival, known locally as Thingyan, hotels in popular destinations were very crowded and long lines were seen at long-distance bus and train ticket counters.

Myanmar is still being shunned by many foreign tourists, a situation that has pushed local hotel operators to focus on domestic travelers.

"The tide has changed in the hotel business," an executive of a local conglomerate said in an interview with Nikkei, adding that it might be possible to resume construction work on new hotels.

Myanmar's tourism industry has been hard hit over the past few years, first by the COVID pandemic that broke out in 2020 and then the coup in February 2021. But travel demand during Thingyan grew to a higher level than each of the last three years, partly because it lasted about 10 days from April 8. Beach resorts were "fully booked," said a travel company official, in what is the hottest season of the year.

Tourists disembark at Nyaung U airport in the Bagan Archaeological Zone on March 31.

Tourists disembark at Nyaung U airport in the Bagan Archaeological Zone on March 31.

Few foreign travelers are seen at Yangon's famous Shwedagon Pagoda on April 2.

Few foreign travelers are seen at Yangon's famous Shwedagon Pagoda on April 2.

Myanmar people walk around the Hledan shopping district of Yangon on March 29.

Myanmar people walk around the Hledan shopping district of Yangon on March 29.

Few foreign travelers are seen at Yangon's international airport on April 2.

Few foreign travelers are seen at Yangon's international airport on April 2.

Cattle walk past the pagodas of Bagan, Myanmar’s ancient capital and a UNESCO World Heritage Site, at dusk on March 31.

Cattle walk past the pagodas of Bagan, Myanmar’s ancient capital and a UNESCO World Heritage Site, at dusk on March 31.

The ancient pagodas of Bagan rise above the mist on April 1.

The ancient pagodas of Bagan rise above the mist on April 1.

Myanmar travelers walk outside a Bagan temple on April 1.

Myanmar travelers walk outside a Bagan temple on April 1.

These cattle were photographed from a hot-air balloon over Bagan on April 1.

These cattle were photographed from a hot-air balloon over Bagan on April 1.

Monks take photos of the sunset in Bagan on March 31.

Monks take photos of the sunset in Bagan on March 31.

Still, the outlook for Myanmar's tourism industry remains clouded, as many foreign tourists continue to avoid the country amid the domestic strife. "Our guests were primarily foreign tourists in the past, but now they are mostly Myanmar nationals," said an employee at a resort hotel in Bagan, an ancient city in central Myanmar.

A single hot-air balloon flies over Bagan. Balloon rides had been a big hit with foreigners, whose absence has caused one operator to suspend service.

A single hot-air balloon flies over Bagan. Balloon rides had been a big hit with foreigners, whose absence has caused one operator to suspend service.

Formerly known as Pagan, the city is home to one of the world's three biggest Buddhist temples and was registered as a UNESCO World Heritage site in 2019. Numerous pagodas and temples built between the 11th and 13th centuries dot the landscape.

Guests checking in to Super Hotel Thilawa, a Japanese hotel adjacent to the Thilawa special economic zone near Yangon, are treated to a big public bath and "yukata," or Japanese summer kimono. Amenities such as these are popular with locals, who can get a taste of Japan without leaving the country.

The sun silhouettes a temple in Bagan as it sets on March 31.

The sun silhouettes a temple in Bagan as it sets on March 31.

Hotels in tourist hot spots are trying to attract more guests by reducing room rates. Under its promotional pricing, the resort in Bagan offers lower room rates to Myanmar nationals than to foreign guests. The former are charged a standard room rate of only 100,000 kyat (4,700 yen) compared with $130 (17,000 yen) for foreign guests.

According to real estate consultancy CIM Property Consultants, the average room occupancy rate at large hotels in Yangon stood at 32% in 2022 -- still well below the 56% recorded in 2019.

CIM predicts the occupancy rate to exceed 40% by the end of 2023 if the situation in the country stabilizes and appropriate reforms are carried out to attract businesses and tourists.

Editor: Masayuki Yuda
Photo/Video: Ken Kobayashi
Copy editor: Charlie Parisek, John Geis