Yangon hotel rates soar due to new demand

Burma hotel rates have continued to increase over the past couple of months as a result of the many economic and political reforms that have swept through the country enticing many tourists and investors to flock towards capital city Yangon. Most economists are afraid that the increase in rates may be a sign of inflation as the Burma economy continues to become more tied into the economy of the outside world and global climate.

At the moment, only a few Yangon hotels cater to international business travellers due to the fact that Burma has had a small appeal to investors in the past and a wide range of economic sanctions imposed against them. However, given several large business delegations that came from Japan as well as some visits from high ranking Japanese politicians some tour operators are now finding it difficult to find cheap rooms for their clients.

In fact, as a result of the increase in business and limited options some hotels are now charging room rates that are as high as 200% over the average rate in just the last couple of months. Union of Myanmar Federation of Chambers of Commerce and Industry member Maung Maung Lay stated that after the tsunami and cold season ended the tourists just started to pull in creating a very high demand for their hotels.

He also stated that even the low range of hotels are benefitting from the increase in tourists and other business visitors as people are searching for lower rates. At the moment, Yangon only has about 181 hotels to offer to visitors compared to the whopping 700 that are located in Bangkok. Although business travellers are not happy with the rates, local business leaders say it was only a matter of time as Burma rates have been way lower than neighbouring countries.