CNI News
2 April 2024
Some hotels in Bagan, ancient heritage site, and northern Shan State were sold because there were almost no tourist arrivals, hotel entrepreneurs associations in those regions told CNI News.
Moreover, hotel industries were making a loss because there were a few tourists who came to and electricity was not regularly available and the number of hotels that were closed had increased than before, they said.
Although some businessmen were interested in buying the hotels that were prepared to be sold, they had not come back yet after they inquired, U Zaw Weik, chairman of the Myanmar Hotelier Association (Bagan Hotel Zone), told CNI News.
"There's not much actual buying and selling yet. There are people who came and inquired. There are people who want to sell. I haven't heard which hotel has been sold already. There are people who want to buy hotels. But the transaction has not been conducted. There are a lot of hotels that have been closed. They can't sustain in the long run. Now it has been over three years already. They were making a loss everyday. You can buy hotels at a lower price at a time like this. Buyers will calculate as well because tourism no longer works." he said.
An aerial view of a high-rise hotel in Lashio
Hotel owners have to sell at the prices lower than the market ones and sellers ask buyers to reduce the price a lot, said regional hotelier associations.
Because the businesses have not been operated again in northern Shan State where battles broke out, there are hotels that will be sold, U Zaw Zaw, chairman of Northern Shan State Hoteliers Association, told CNI News.
Moreover, there are many businessmen who are watching to buy hotels in Lashio, northern Shan State, he added.
" Some people come here in Lashio to inquire to buy hotels or invest on other businesses. If your hotel is in a good place and your business is good, you can sell it at the price that you want. But there haven't been many transactions yet. There are many people who watch Kashio to buy hotels and other businesses." he said.
The tourism sector has declined since the Covid-19 pandemic and political changes took place in 2021. The sector improved a little in 2022.
However, in 2023 the battles broke out in many parts of the country, it was difficult to travel, the electricity was not regularly available and hotel room accommodation fees increased. So, there were almost no tourist arrivals.
According to the current situation, it has not been easy to improve the tourism sector of Myanmar, reviewed hotel entrepreneurs.