Min­istry de­nies ban on new ho­tel de­vel­op­ments

The Myanmar Times - - Business - – Thit Nay Moe, Trans­la­tion by San Layys

THE Min­istry of Ho­tels and Tourism yes­ter­day dis­missed a lo­cal news re­port that it had in­structed some key re­gional gov­ern­ments to stop the de­vel­op­ment of any new ho­tels.

Ac­cord­ing to a Septem­ber 20 ar­ti­cle pub­lished in the Global New Light of Myan­mar, the Min­istry of Ho­tels and Tourism had put a ban on construction of new ho­tels in Yan­gon, Man­dalay, Taung­gyi, Nyaung Shwe and Kalaw, due to con­cerns over a sup­ply glut of ac­com­mo­da­tion in those re­gions.The story, which did not name a source, said that the min­istry would hold a ban on new de­vel­op­ments “de­pend­ing on sup­ply and de­mand”.

How­ever, U Myo Myint, di­rec­tor of the Min­istry of Ho­tels and Tourism, said yes­ter­day that the min­istry had asked re­gional gov­ern­ments to weigh up de­mand for new ac­com­mo­da­tion be­fore grant­ing pro­ject ap­provals, but that no di­rec­tive ban­ning new de­vel­ops had been is­sued.

‘’We have not pre­vented new de­vel­op­ments,” he said. “We just said to anal­yse the sit­u­a­tion care­fully be­fore grant­ing per­mis­sion.”

En­sur­ing build­ing stan­dards were ap­plied were also part of the con­ver­sa­tion with re­gional gov­ern­ments, he added. Sin­ga­pore, a hot spot for foreign firms to struc­ture their in­vest­ments while Myan­mar is un­der sanc­tions, is recorded as the largest in­ter­na­tional source of foreign in­vest­ment in the ho­tel in­dus­try, ac­count­ing for over US$ 1.6 bil­lion since 1989, ac­cord­ing to U Myo Myint.

This is fol­lowed by Thai­land with more than $445 mil­lion and Viet­nam, which has in­vested about $440 mil­lion into the same pe­riod, he added.

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