Nga­pali set for fur­ther ex­pan­sion as tourism de­mand in­creases

Mizzima Business Weekly - - CONTENTS -

Yan­gon City, 4, July, 2017 | While there was a 30% in­crease in vis­i­tor ar­rivals to Nga­pali in 2016 com­pared to 2015, do­mes­tic trav­ellers recorded a dou­bling in their num­ber dur­ing the same pe­riod.

Ac­cord­ing to Karlo Po­bre, As­so­ci­ate Di­rec­tor for Re­search & Ad­vi­sory at Col­liers In­ter­na­tional, the do­mes­tic trav­eller mar­ket is help­ing to sup­port the re­sort city dur­ing the low sea­son from May to Oc­to­ber.

“Many ho­tels of­fer mon­soon dis­counts dur­ing this pe­riod and also more ho­tels re­main open dur­ing this time due to re­cent con­nec­tiv­ity to the elec­tric­ity grid”, said Mr. Po­bre. “Do­mes­tic mar­ket de­mand is very im­por­tant to any re­sort lo­ca­tion and is less prone to ex­ter­nal shocks and also should spur the mar­ket for the res­i­den­tial sec­ond-home mar­ket.”

In 2016, the low sea­son oc­cu­pancy rate hov­ered be­tween 30% and 40%, while the high sea­son reached 83%; with some ho­tels record­ing full oc­cu­pancy. Over­all, the av­er­age oc­cu­pancy rate in 2016 grew by 4% year on year to end at 53%. Mean­while, the av­er­age daily rate grew by 1.5% and 3.4% year on year for the up­per-scale and mid-tier ho­tel cat­e­gories, re­spec­tively.

While no new sup­ply was added in 2015 and 2016 to the 720 rooms cur­rently on of­fer in the mid-tier and up­per-scale cat­e­gories, many ho­tels are un­der­go­ing room ex­pan­sion plus with eight new projects in the pipe­line rep­re­sent­ing more than 500 rooms, the re­sort is set to move beyond its cur­rent fron­tier sta­tus to that of a more main­stream tourist cen­tre es­pe­cially as in­fra­struc­ture de­vel­ops ac­cord­ing to The Htet Oo, As­sis­tant Man­ager. “There are lim­ited op­tions for ex­pan­sion along the cur­rent main Nga­pali beach zone, so devel­op­ers are look­ing fur­ther north and south as well as the nearby is­lands and coasts where land prices are con­sid­er­ably cheaper, for now”, Ms. The Htet Oo added.

Fur­ther growth is ex­pected due to the in­creas­ing num­ber of flights, in­clud­ing that of Man­dalay, open­ing the mar­ket from Chi­nese trav­ellers mostly from Yun­nan Prov­ince. Mr. Po­bre noted that the gov­ern­ment is look­ing to up­grade and ex­pand Thandwe air­port to cater to larger planes and in­ter­na­tional ar­rivals. “This would be a ma­jor gear shift and the whole area would be more com­pa­ra­ble to Sa­mui than the de­serted beach it once was, Mr. Po­bre added.

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