Under the previous government, permission was granted to businesses to set up 10 hotel and resort projects on 12 islands in Tanintharyi Region. 

All 10 projects received approval from the Myanmar Investment Commission (MIC). Some are already open for business and others will be opening this year. 

One of the existing projects involves a 50-villa resort on Poni and Balar islands that Amata Holding Public Co is planning to open in the first quarter of this year. 

“I’m worried about our investment because the regional government is planning to allow new projects on the same islands. We are aiming for the premium market like in Maldives. If the environment is damaged due to mismanagement, high-end travelers will not visit. The government should consider the millions already invested as well as the environmental issues,” U Win Aung, group CEO of Amata Holding told The Myanmar Times. 

Rising competition

In order to capture the high-end market, Amata Holding already has plans to operate seaplane and helicopter services to the islands under its subsidiary Amata Aviation.  

Amata Aviation plans to utilise Bell 505 helicopters and Cessna Caravan amphibian aircraft for the service, which will considerably shorten travel time to the islands. 

Competition in Myeik has been rising since the NLD-led government took office in 2015. Since then six more investors are requesting for MIC permits for hotel and resort businesses under the build-operate-transfer system on the islands. 

“The six proposals are from domestic investors who want permits from MIC for hotel and resort projects. But projects are still in the draft stage and MIC has not made a final decision yet. MIC will examine carefully how much benefit to the country in terms of potential of profit and job creation before deciding,” Dr Tun Tun, secretary of MIC for Tanintharyi Region told The Myanmar Times.

The projects have already received approval from the regional government and Ministry of Hotels and Tourism, Dr Tun Tun added. 

Among the projects approved by the regional government are those that will operate on the Poni and Balar islands, where Amata Holding has a presence.

Dr Tun Tun said said the terms for the existing projects involve 50-year leases, with 10 year extensions up to a maximum of 70 years, while the terms for the six new proposals are for 30-year leases, with 10 year extensions up to a maximum of 50 years.   

According to the Ministry of Hotels and Tourism, Tanintharyi Region will gain a total of 438 rooms from 10 hotel and resorts projects approved earlier adding to the existing 36 hotels with 1451 rooms in the whole archipelago now. 

Four companies are also applying for approval to use land along the Long Lone coast near Long Lone Township in Dawei, under the Vacant, Fallow and Virgin Land Management law for the purpose of constructing hotels and resorts. 

Local concerns

However, local people, civil-society organisation and the Dawei Nationalities party submitted a petition to the Land Management and Statistics Department of Dawei Township on January 3 protesting against developers applying for three islands and one beach.  

The developers include Excellent Fortune Development Group Co Ltd, Yadanar Sai Kaung Myat Kyaw Mining Co, Soe Naing Phyo Co Ltd and First Golden Dragon Construction Co Ltd, which are applying for land use on Pae Zin Island, Pa Nyit Island, San Hlan Island and Sin Htaung Aw beach for hotels and resorts, U Maung Maung Aye, a resident and vice chairman of the Dawei Nationalities party told The Myanmar Times.   

According to U Maung Maung Aye, the four companies have the same owner.  

“Local fishermen and residents rely on the three islands and beach for their livelihoods, and the hotel development plans could jeopardise local livelihoods,” he said.  

The beach areas are also the location of ancient historical sites, and it is the responsibility of the regional government to protect it, he said. 

“The government should support local residents and conserve heritage sites,” U Maung Maung Aye said, adding that there has been no reply from the township office and the people are waiting for a response from them.

According to Dr Tun Tun, MIC has not yet received applications for approval from the four companies. 

Among the over 800 islands in the Myeik archipelago, not many islands are left for developing hotels and resorts as many are being used by pearl farms some have been made private, said Dr Tun Tun.

However, the regional government shouldn’t allocate land without keeping in mind a firm strategy for tourism development and protection of the islands and environment, he added. 

“The regional government needs to have a development plan and restrict the projects allowed on the islands in order to maintain the environment before damage arises from over development,” he said.  

Tanintharyi Region is becoming more popular among local and foreign visitors and the Ministry of Hotels and Tourism and the regional government began allowing the arrival of international cruise ships in the region last year.  

Cruise visitors have to pay US$100 as an entry fee to the Ministry of Hotels and Tourism and US$30 for visas on arrival to the Ministry of Labour, Immigration and Population for a five-day stay around Kawthaung.

Source: https://www.mmtimes.com/news/competition-among-hotel-investors-heats-myeik-archipelago.html