Myanmar to establish Tourism Development Bank

The tourism industry will get a boost after the establishment of a Tourism Development Bank.

The tourism industry will get a boost after the establishment of a Tourism Development Bank. At the moment, it is awaiting for the Central Bank to grant the permission, according to Than Tin, the managing director of the Myanmar Tourism Bank.

“We first expected to get the licence in May. But the licence is yet to be given. We will open the new bank as soon as we gained the permission. The first bank will be open in Nay Pyi Taw and then Mandalay and Yangon,” said the managing director.

The proposed development bank will provide loans, technological assistance and communications. The move comes as a result of a high influx of international tourists. The tourism sector showed a profit of US$1 billion in 2014 which is expected to double this year.

A public company, investor recruitment, selling of shares, organising and participating in tourism-related events, have all been pre-approved by the government.

This ambitious project is expected to contribute not only to the tourism industry, but also to other related businesses.

Myanmar to establish Tourism Development Bank

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Written by Linda Hohnholz

YANGON, Myanmar – Due to the rapid growth of tourist arrivals and expansion of the tourism industry, Myanmar will establish a Tourism Development Bank to help support tourism and hotel developers.

YANGON, Myanmar – Due to the rapid growth of tourist arrivals and expansion of the tourism industry, Myanmar will establish a Tourism Development Bank to help support tourism and hotel developers.

Eleven Myanmar media quoted Myanmar Tourism Federationโ€™s co-general secretary, Tin Tun Aung, saying Myanmarโ€™s tourism sector has grown at such a rapid pace it needs to raise capital far beyond the scope of commercial banks.

โ€œTo respond to this need, a Tourism Development Bank is due to open to support hotels, tourism companies and local businesses gain access to capital.โ€

He added: โ€œThe bank will mainly cater to entrepreneurs in the tourism sector offering them loans and technical aid.โ€

The bank has already received permission from the government to establish operations, which will begin by establishing a company, inviting investors, selling shares before hosting tourism expos attended by hotel and tourism developers seeking capital.

International tourist arrivals rose sharply, from 800,000 in 2011 to about 2.04 million in 2013 generating USD926 million.

So far, this year tourist arrivals to Myanmar are on target to reach 3 million, and the revenue generated by the tourism sector should exceed USD1 billion.

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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