YANGON, 27 May 2015: Myanmar’s local tourism companies face stiff competition from online travel firms that could put small travel firms in Myanmar at risk.
Nature Dream Travels managing director, Daw Sabei Aung, told Myanmar Times that the internet market could account for as much as 70% of all travel to Myanmar within a few years, pushing local tour operators against the wall.
“We’re giving internet training to our tour operators and hiring foreign internet marketing experts. But that won’t help the industry countrywide. We need government support to save SME tour operators,” she said.
The director added that the Philippines, Vietnam and Thailand faced the same problem, but each has found its own way of dealing with it.
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This is not an accurate observation as hundreds of SME travel firms have collapsed in these countries as large online booking agencies entered the market.
In Thailand some of the big regional online booking firms gained Board of Investment privileges (tax holidays and permission to hire foreign executives). SME travel agencies were not given the same incentives and failed to compete with the foreign firms.
“The Thai government had acted through the Tourism Authority of Thailand to protect small operators. The Philippine government forced hoteliers to favour local companies over online agents while Vietnam improved tourism services across the board,” she claimed.
None of the observations bear even minimal scrutiny.
Amazing Hotels and Resorts group general manager, Daw Hlaing Hlaing Win, said online bookings have increased compared to previous years.
“Tourists surf the web to read hotel guest reviews and book rooms for themselves.”
Online purchase of air tickets has also increased by about 30%, according to Myanmar Airways International.
Myanmar Marketing Committee chairman, U Phyo Wai Yar Zar, admitted that tourists can often get a cheaper deal than travel agents can offer.
Most Myanmar hotels use www.agoda.com, www.hotels.com and www.booking.com, which are available worldwide in 40 different languages, the report said.
