Ministry denies ban on new hotel developments
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.