New Frontiers, on tourism and relat

[brelief@xxxxxxx]

Subject: New Frontiers, on tourism and related issues in Burma

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January, 1996

(Prepared by Tourism Investigation and Monitoring Team
Published by TERRA -- E-mail: TERRAPER@xxxxxxxxxx

SLORC'S OFFICIAL TOURISM POLICY 

(Golden Myanmar: Vol 2, No. 4, 1995) The following are
excerpts of articles of the Golden Myanmar Quarterly
Magazine, shedding light on the Burmese government's official
tourism promotion:

Tourism Resources: With its cultural heritage and civilization,
Myanmar is a cultural destination. Myanmar's unspoilt natural
beauty associated with different types of flora and fauna can
play a vital role for the development of the tourism industry.
Ancient cities of Bagan, Hantharwady, Inwa, etc. show how
well the civilization of Myanmar prospered centuries ago.
Panoramic view of the snow capped mountain ranges in the
North as well as the leg - rowers at the Inlay Lake and miles of
unspoilt eye catching beaches shall always be the unforgettable
memories for visitors from abroad.

All sorts of preparations have been made for  Visit Myanmar
Year 1996'. At present, there are 31 on  going hotel projects
with the total investment of US$604 million, ranking second
after the energy sector.  Hotel projects are mostly located in
Yangon. Because of the diverse attractions, there is a growing
need for international class hotels in major tourist sites like
Mandalay, Bagan, Inlay and Ngapali. There are also many
newly opened areas like Mawlamyine, Myitkyina, Kengtung,
Pyay, where no hotels of international standards are available.

Many investment opportunities are also available for the
development of golf courses, beach resorts, tourist villages,
amusement parks, recreation centres, service apartments,
condominiums and office complexes.

Focus on Eco-tourism: "Myanmar, rich in natural resources,
has over 50 per cent of the total area still covered with forests.
The Forestry Ministry has selected a number of sites for eco
tourism. One of those sites is along the Bago Yoma hump road
across natural teak forests. At a time when commercially
exploitable natural teak forests have virtually disappeared in
neighbouring countries, the natural teak forests astride the
Bago Yoma hump road may even be regarded as the last
foothold."

Foreign Investment: "Realizing the significance of foreign
investment for economic (and tourism) development, the
government issued the Foreign Investment Law and the
Procedures relating to that Law in 1988. The policy objectives
underlying foreign investment are for the promotion and
expansion of exports, exploitation of natural resources which
require heavy investment, acquisition of high technology,
assisting production and services involving large capital,
opening up of more employment opportunities, ...  and regional
development.

The Law provides attractive tax incentives. There is an
exemption from payment of duties for the import of plant and
machineries, and also tax holiday for three years, which is
extendable. Foreign investors are permitted to lease land and
immovable property at reasonable rates from the government.
The repatriation of capital and profit is also allowed. The Law
also guarantees that foreign investments made ... shall not be
nationalized."BURMA OPENS UP AND TEARS DOWN

{AWPNUC - N: Dec. 1995)  - CULTURAL isolationism
under a military dictatorship can have its benefits: for a quarter
of century, from 1962 to 1988, the nominally socialist regime
of Ne Win effectively froze the economy in Burma while
curtailing all movement and information flow in and out of the
country. During that time, there was virtually no national or
private funds to spend on urban modernization. As a result, the
British colonial city of Rangoon and older royal capital of
Mandalay remained largely untouched, so that these cities now
arguably represent the two of the greatest treasure troves of
late 19th century and early 20th century' architecture in
Southeast Asia.

After the 1988 political turmoil, the newly formed SLORC
proclaimed a transitional market economy, so as to invite
direct foreign investment, and next October is to launch 'Visit
Myanmar Year 1996 - 97' - a major campaign modelled on
other Southeast Asian tourist drives.

In keeping with the Visit Year objective to attract 500,000
visitors, over 20 new  international class hotels, shopping
centres and office towers are in the works around Rangoon,
overturning the zoning precedent that no high rise structure
"look down" on the town - centre Buddhist spire of Sule
Pagoda, and putting considerable strain on electricity and
water supplies.

More alarming, however, is the recent decree that slates some
250 buildings to be 'beautified" or replaced. Typically,
residents are given two weeks to implement improvements or
chisel off "shabby" facades. Buildings failing to comply may
be razed and site - use then sold (state land - holding statutes
still reflect socialist times). Construction contractors from
Singapore, Thailand, Macao and Japan are given no stylistic
directives by which to preserve the existing urban continuity.

Mandalay to the north is likewise falling ill of rush military
mobilization development schemes. Streets have been widened
by bulldozing houses, sending hundreds of homeless to "new
towns". Major heritage sites such as the Royal Palace and
Atumashi Temple are being hurriedly "reconstructed" in
reinforced concrete in time for the influx of tourists. And
again, new hotels are being put up in numbers, here mostly by
and for Yunnan Chinese. Aesthetic and cultural considerations
tend to be as questionable as building safety.

The SLORC generals, who posit themselves both as the
guardians of tradition "We do not want another Bangkok"  and
patrons of innovation -- "We want a proud modern city" - are
all too eager to tear down. Tragically, Burma's long isolation
precludes awareness that tourists and other interests might
actually pay to see some old neighbourhoods kept.

ASIAN ACTIVISTS CALL FOR BOYCOTT OF BURMA'S
TOURISM DRIVE

(TN: 15.12.95; BP: 20.12.95) - On 14 December, students
from Australia, Hong Kong, Malaysia, Nepal and Thailand
joined their colleagues from Burma to protest the participation
of the Rangoon regime in the Fifth ASEAN Summit with
leaders of all 10 Southeast Asian nations. The rally took place
in front of the Royal Orchid Sheraton Hotel in Bangkok, the
venue of the meeting.

The students also called for a boycott of trade, investment and
tourism in Burma until the State Law and Order Restoration
Council (SLORC) hands over power to democratic forces.
"Over 3,000 political prisoners remain in prison and human
rights abuses continue at a regular basis. ASEAN must
consider economic, arms and tourism sanctions against the
(Burmese) dictatorship," said their statement.

At a following meeting, attended by 26 NGO representatives
from 12 countries and organized by the Thai Action
Committee for Democracy in Burma and the Asian Cultural
Forum on Development (ACFOD). participants said Burma's
1996 tourism drive should be boycotted because preparations
for it had caused its people great hardship.

The Asia - Pacific Consortium on Burma appealed particularly
to tourists from ASEAN countries to shun Visit Myanmar
(Burma) Year 1996. Preparations for this tourism campaign
had caused "forced relocations, forced labour and a disruption
of essential services," the consortium said. The ruling SLORC
aimed to reap foreign exchange from at least 500,000 tourists
it hopes to attract. A considerable amount of foreign direct
investment has gone into the hotel industry and related
services.

The consortium pointed out that multinational investment
continued "regardless of gross human rights abuses",
particularly against workers, unions, women, children and
indigenous peoples. It concluded that ASEAN's "constructive
engagement" policy with Burma "benefits only SLORC" and
urged the grouping to take appropriate measures" to support
human rights in Burma.

 = = = = = = =

New Frontiers
December, 1995

NOT WELL PREPARED FOR TOURISM

(TN: 3.11.1995; 25.11.1995; Al: Nov. 1995) - The Burmese
military regime is risking a backlash of bad publicity by
rushing tourism promotion before the country is ready. As this
once isolated nation is ambitious to complete the final
preparations for  Visit Burma Year 1996', doubts have risen as
to whether the undeveloped infrastructure will be able to cope
with the expected influx of visitors.

If  Rangoon's predictions of a 20% increase in visitors is
correct, approximately 300,000 tourists will descend on the
country, prompting concern among industry insiders that
shortages of hotel space and suitable transportation may affect
the viability of the long term market.

An increase in negative press is also expected as people pay
overpriced rates for substandard hotel rooms. This could result
in a tourism backlash, with one industry source putting it,
"1988 might have  been a more auspicious choice." A Thai
businessman complained: "Not only are hotel costs very high,
but also the service is still very poor. Many visitors, who have
made room reservations, were turned away because some VIPs
showed up and wanted rooms ... VIP guests usually walk in
without prior booking. Such guests often cite security concerns
for having not made reservations.

Even with unprecedented hotel construction underway in
Rangoon, only an additional 1,500 beds will be available for
1996. The majority will not be fully completed until 1997 -
98. The situation upcountry is even less appealing as one
travel agent explained: "Except for the Novotel that opens in
mid - 1996, there isn't any hotel in Mandalay that could reach
the word 'international standard'. There is nothing you could
start a big tour with, there's just nothing there."

As for Burma's much publicized 4,000 kms of pristine
coastline and several hundred tropical islands, as of present,
only three islands are open to tourists, all serviced by one 400 -
room hotel.

Transport is another obstacle, according to insiders of the
tourism industry, because travel from one city to another is still
inconvenient and time - consuming. Though the government
has made great strides in trying to upgrade the country's
transportation system, critics continue to point out that much
of the new infrastructure - airports, roads and railways - is
being build using forced labour.

New flight terminals are under construction at the major
tourist gateways of Rangoon, Mandalay, Heho and Pagan, but
all are not due for completion until 1997. A new train station
is being built in Mandalay, and though a sign depicts it as a
 Visit Myanmar 1996' project, it will not be completed until
1997. With the cash - strapped state government unable to
invest in more rolling stock, no sleepers are available for the
18 - hour ride from Rangoon to Mandalay.

The rush to get into tourism business has resulted in a plethora
of businesses offering substandard services. Even basic
necessities such as tour vans and English - speaking guides are
hard to find. The unrestricted competition has also led to all
out brawls between competing tour companies at the airport
and a rise in unscrupulous business tactics such as taxi drivers
delaying their arrivals to the train station until the last train to
Mandalay has departed and then offering their services as tour
guides.

Under a master plan to be submitted to UNESCO for parts of
Pagan to be listed as a World Heritage site, Zone 3 will be
listed as a two -  part economic zone. The first division near the
international airport will be available to Burmese nationals
only, the second, located 9 kms south of the ancient city wall,
will be for foreign investment. With both areas at present little
more than dusty plains, it will take three to five years to
develop the sites.

General Kyaw Ba, the Minister for Hotels and Tourism, also
does not seem to be well prepared to cope with large - scale
tourism. Forty years in the infantry have left their mark on the
60 - year - old military man. He admitted: "I had no
background for this job when my ministry was created in
1992. 1 came from Kachin State, where I was the regional
commander for eight years."

Kyaw Ba's ministry office looks like a bunker. Heavily armed
recruits guard the door, though the only apparent threat to life
comes from cars careening around nearby Sule Pagoda. Kyaw
Ba may be the only tourism minister in Asia whose
appointments secretary wears camouflage fatigues, opens mail
with a bayonet and complements his steno pad with a revolver
and concussion grenades.

THAI ~ BURMESE TOURISM DEALS

(BP: 16.11.1995; TN: 1.11.1995; 28.11.1995) - A
BILATERAL agreement on tourism between Thailand and
Burma should result in benefits for both sides, according to
Pradech Phayakvichien, a top official of the Tourism
Authority of Thailand (TAT).

During a briefing with Burmese Deputy Minister Vice -
Admiral Maung Maung Khin in Bangkok, Pradech told him if
an agreement was reached, Thailand could help Burma plan
and market its tourism industry and train industry personnel.

In 1994, Thai investment projects in Burma,  among them
several tourism ventures, ranked fifth after British, French,
Singaporean and United States deals, with a total investment of
US$264 million.

The Andaman Club Co. Ltd., an affiliate of the Thai Ves
Group investing in a casino - cum - golf resort on Thahtay
Kyun Island in southern Burma, now plans to set up s joint
marketing promotion with Bangkok Airways Co. to attract
foreign tourists from other destinations in Thailand.

With a 30 year land concession for the 1,800 acre island from
the Burmese government, the company wants to make the
resort the centre of marine tourism destinations on nearby
islands of both Burma and Thailand, said the company's
president Vikrom Aysiri. From a private pier in Ranong, the
resort's speed boats and a yacht take guests to the island within
10 - 15 minutes. While hotel facilities are already operating,
the 18 - hole golf course, designed by Jack Nicklaus, will be
completed in the next two years.

ENVIRONMENTAL  DEGRADATION

[BI: Nov. 1995; TN: 30.11.1995] - ACCORDING to a recent
report of the Thailand-based NGO Images Asia:

~ Forest cover in Burma has decreased from 80)% to less than
20%.

~  In 1991, Burma had the third highest rate of deforestation in
the world (8,000  sq kms a year). After Brazil and Indonesia.

~  Most logging occurs in areas inhabited by indigenous
peoples and is carried out by foreign companies who pay
concession rights directly to the Myanmar Timber Enterprise.
In ethnic areas along the borders, logging also serves as an
effective means of strategic defoliation.

~   Raw logs are exported via land routes to China, Thailand
and India.

~   Forest destruction as a result of shrimp farming, and oil
exploitation in Arakan State and SLORC - run rubber and
eucalyptus plantations on the Tenasserim coast is also
rampant.

~  In addition, forests are increasingly threatened by other
mega development projects such as road construction,
pipelines, dams, and onshore oil exploitation.

 ~  The devastating environmental impacts are droughts and
water supply shortages, rainy season flooding, soil erosion,
siltation of surface waters, as well as destruction and
disruption of wildlife habitats

Acknowledging the serious environmental problems in her
country, Daw Yin Yin Lay, Burma's representative to the Asia 
- Pacific Ministerial Conference on Environment and
Development, recently held in Bangkok, said her first priority
was to see environmental impact assessments (EIAs) become
mandatory for all major development projects.  "Foreign
investors sometimes bring in their own consultants to do
EIAs," she said. "They come and consult with us, but we have
no authority over the projects."

Yin Yin Lay is a member of Burma's Commission for
Environmental Affairs (NCEA) and serves as the deputy
director of the commission's secretariat. "Actually, our office is
run by the Foreign Affairs Ministry with a budget from the
Prime Minister's Office," she said. Asked how big her budget
was, she simply laughed.

While a national environment policy was adopted last year,
Burma has not yet an environmental law and needs technical
assistance to draft one. Other laws related to the environment
have passed, including the Forestry Act of 1992 and the
Protection of Wildlife, Wild Plants and Natural Areas Act of
1994. However, most of the laws were quite old and outdated,
Yin Yin Lay said.

"Myanmar (Burma) is promoting investment, so we need a
good monitoring system. There should be a regulation for
EIAs, but I don't know when it will come. We will have to
push for it," she said.

UK - HOLIDAY MAKERS URGED TO BOYCOTT
'POISONOUS' BURMA

(WT: 2.12.1995) - EXILED dissidents and groups opposed to
Burma's military dictatorship have launched a  Boycott Visit
Myanmar (Burma) Year' campaign.

The London - based Burma Action Group (BAG) has
produced an alternative guide to the country. Instead of
illustrating tourist attractions, it highlights places such as the
site where students were massacred in 1988 by the military;
the prison holding political prisoners; and the home of
opposition leader Aung San Suu Kyi. BAG is also lobbying
tour operators that feature holidays in Burma.

The campaign's launch comes against the background of
increasing tension between the State Law and Order
Restoration Council (SLORC) and the National League for
Democracy (NLD) led by Aung San Suu Kyi; the NLD
recently walked out of the SLORC's showpiece convention
which has been dismissed as manipulated and undemocratic.

The ruling generals in Burma hope that images of an unsullied
and peaceful land will attract hordes of dollar - toting visitors
next year. However, opponents to the regime are telling
potential visitors that the reality of life under a dictatorship is
dramatically different, citing forced labour and other human
rights abuses. They also warn that much of the money spent by
visitors will vanish into the pockets of the military, which is
closely involved with the tourist industry.

Still, British tour operators are increasing the Burma
programmes for 1996. British Airways Holidays, for example,
has launched its first Burma holidays, and Asia World Travel,
which offered trips to Burma since 1991, has expanded its
programme. A Singaporean subsidiary of James Sherwood's
London-based Sea Containers Group, has signed a 55 million
pound sterling deal with the military to operate luxury cruises
on the Irrawaddy River and a floating hotel in Rangoon.

Yvette Mahon, coordinator of BAG, stated: "The tourism
industry is very closely linked to the abuses. The situation in
Burma is particularly shocking because it is so blatant."


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