Resurgence and transformation: the impact of COVID-19 on Myanmar’s tourism industry and future trends

2.1 Decline in international visitors

As the COVID-19 pandemic unfolded globally, Myanmar’s tourism industry, like many others, faced immediate and profound challenges. A notable effect was the precipitous fall in tourists from other countries (Boughton et al., 2021). A large number of tourists were unable to visit Myanmar because of the country’s and the world’s harsh travel restrictions. Before the pandemic, Myanmar was experiencing a growing influx of international tourists. This trend saw a significant increase, such as in 2016 when the country welcomed around 2.9 million visitors. This upward trajectory in tourist numbers sharply contrasted with the sudden decline experienced during the pandemic (Clifton et al., 2018; World Travel and Tourism Council, 2016).

The bar chart in Figure 2 displays the sharp decline in international visitor numbers to Myanmar during the pandemic years, from 2019 to 2021. The graph starkly illustrates the significant drop in tourism, particularly highlighting the drastic reduction in international visitors as a result of travel restrictions and global health concerns. This visual representation effectively communicates the immediate and severe impact of the COVID-19 pandemic on Myanmar’s tourism sector.

This drop was mostly caused by the quarantine measures taken to stop the spread of the virus, which included the cancellation of all international flights and the closing of borders. Tourist permits were put on hold, and numerous nations warned citizens against unnecessary travel, especially to areas hit by the pandemic (Holloway & Humphreys, 2022). People were already hesitant to travel during the pandemic out of concern for contracting the virus. This sudden halt in foreign travel had serious consequences for Myanmar, a nation that relied heavily on tourism for both revenue and economic progress.

Many people and organizations involved in the tourism industry felt the effects of the drop in visitors. Businesses in the area, such as hotels and tour operators, that relied greatly on tourists from other countries were hit hard financially (Radivojević, Dimovski, & Mitić, 2023). Businesses in popular tourist areas were among those that had to temporarily or permanently close their doors, causing economic hardship and the loss of jobs for many people employed there. Indirect beneficiaries of tourism, such as supplementary services and local communities, also felt the effects (Headey et al., 2022).

This incident demonstrated how susceptible Myanmar’s tourist industry is to worldwide disturbances and how urgent the need is for measures that are more robust and diverse. The industry woke up to its reliance on foreign tourism after seeing a precipitous fall in international tourists, which led to the investigation of potential future models that are less reliant on this revenue stream.

2.2 Economic losses and employment challenges

The economic fallout from the decline in international tourism due to COVID-19 was deeply felt across Myanmar’s tourism sector. An unexpected and severe slump befell this industry, which had grown into a lynchpin of the country’s economic growth, making substantial contributions to GDP and employment (Mahmud & Jabin, 2022). There was a domino effect that affected many related sectors when people stopped travelling internationally, including transportation, hospitality and local crafts, which led to a precipitous drop in income from tourists (Boughton et al., 2023). The tourism sector in Myanmar, like many others globally, faced significant challenges due to the COVID-19 pandemic, leading to a dramatic decline in tourist arrivals and tourism income in 2020 compared to 2019 (World Bank, 2020).

In the years leading up to the pandemic, hotels, resorts and tour operators had been enjoying rising revenues. However, all of a sudden, they were hit with cancellations and unfilled bookings. The lack of activity for an extended length of time was too much for many of these firms, especially the smaller ones that were owned by locals. Many companies had to make the tough choice to lay off workers or shut down completely as a result of the extensive financial strain that ensued (Ferreira, Salvucci, & Tarp, 2021).

The impact of COVID-19 on Myanmar’s tourism industry, crucial to its GDP, has been significant. Research involving 100 stakeholders from Yangon used random sampling and questionnaires to reveal the sector’s vulnerability due to its dependence on international tourism. Economic effects were marked by financial losses and disrupted demand and supply chains. Socially, business owners faced stress and anxiety (Htoo & Kyaw, 2023). This situation requires enhancing stakeholder capacity and promoting public-private partnerships for future growth. In addressing the pandemic, Myanmar also contended with a military coup in February 2021, complicating recovery (Htet & Batra, 2021).

There were extensive and serious problems with the job market. Unemployment rates spiked in areas of Myanmar that rely largely on tourism as a result of the mass layoffs in the country’s tourism industry (Hudson, 2022). This was especially difficult in a nation where a large portion of the people depends on their income from day-to-day activities. A wider range of economic sectors felt the effects, not only individuals directly involved in the tourist industry. Street sellers, tour operators and artists were among of the most impacted informal workers because their livelihoods were directly tied to the number of tourists (Kandpal, 2023).

The line graph in Figure 3 presents the impact of the COVID-19 pandemic on revenue, employment and business closures in Myanmar’s tourism sector from 2019 to 2021. The graph illustrates a significant increase in revenue loss, job losses and the number of business closures over these years, highlighting the severe economic consequences of the pandemic on the tourism industry. Each line represents a different aspect of the impact – revenue loss, job losses and business closures – offering a comprehensive view of the challenges faced by the sector during this period. This figure effectively communicates the multifaceted economic repercussions of the pandemic on Myanmar’s tourism industry.

The necessity for a tourist business in Myanmar that is more robust and sustainable was further brought to light by this economic crisis. The pandemic highlighted the need to diversify the tourist sector and the peril of depending largely on foreign tourists. To lessen the blow of future crises like these, it highlighted the need for improved safety nets and professional development opportunities for sector workers.

2.3 Government and private sector responses

After COVID-19 devastated Myanmar’s tourist industry, the government and corporate sector worked together to implement a variety of measures to lessen the impact of the crisis and set the stage for recovery. Because of the sector’s importance to the economy, the government took many steps to help companies and workers hit hard by the recession. Businesses in the tourist industry were among those that were eligible for financial aid programmes that provided loans and subsidies to help them weather the pandemic. To further alleviate the financial strain on tourism companies, the government also sought to revise tax policies and provide tax relief (Wai et al., 2021).

Even if it was in a different light, the country’s profile as a tourist destination was also kept up. Campaigns promoting Myanmar as a secure destination, with health and safety measures in line with international norms, were initiated by the Ministry of Hotels and Tourism in conjunction with international organizations (Allaberganov, Preko, & Mohammed, 2021). These steps were critical in restoring faith among tourists and laying the framework for their eventual return.

Also, the private sector was lightning fast in responding to the new threats, showcasing incredible creativity and agility. For example, several tour companies and hotels shifted their focus to domestic tourists, offering special deals and packages to entice people from the area (Kahveci, 2023). Although it was at a reduced level, this change helped keep some businesses afloat and jobs available. The private sector’s reaction was heavily influenced by digital transformation. Many companies shifted their marketing efforts to digital channels as a result of the limitations on physical travel (Zreik, 2023b). In order to stay relevant and ready for the recovery, businesses started using virtual tours, Internet marketing campaigns and better online booking systems more frequently.

More importantly, the crisis prompted a paradigm shift in the tourist industry, placing a premium on eco-friendly and socially conscious activities. In an effort to broaden their customer base and make sure that locals felt the full impact of tourism, a few companies in the private sector started looking at community-based tourism projects. Both the shifting tastes of tourists, who were looking for more genuine and ecologically conscious adventures, and the worldwide movement towards sustainable tourism were met with enthusiasm by this strategy (Łapko et al., 2021). The importance of working together in these endeavours was acknowledged by both the public and private sectors. Training programmes for workers to enhance their abilities in line with the changing market demands were developed as part of initiatives for the sector’s recovery through public-private partnerships (Ullah, Haji-Othman, & Daud, 2021). The concerted response to the crisis was made possible by this collaborative approach, which laid the groundwork for a more robust and diverse tourist business in Myanmar after the pandemic.

3.1 Health and safety protocols

Similar to other countries, Myanmar’s tourism industry had to swiftly adjust in the face of the COVID-19 pandemic, placing a premium on health and safety measures to safeguard both residents and tourists. As a result, the industry’s plan to deal with the crisis and be ready for recovery revolved around strict health and safety regulations. The government, in conjunction with health agencies and international groups, drafted detailed regulations for several parts of the tourist industry (Grundy-Warr & Lin, 2020). Health screenings at entrance points like airports and bus terminals, social distance in hotels, restaurants and tourist sites, and the required use of face masks were all measures included in these rules. Ensuring safety was the primary goal of these measures, but rebuilding traveller confidence was also an important part of getting the industry back on its feet.

Personnel involved in the tourist value chain were educated on these new protocols through training programmes. Training on the successful implementation and management of these health measures was provided to key stakeholders, including hotels, tour operators and transport providers (Tiwari, Séraphin, & Chowdhary, 2021). The protocols had to be in place and continuously followed, and this training made sure of that. Certifications pertaining to health and safety also gained popularity. Businesses were certified when they met the safety standards, which made them more trustworthy to potential tourists (Davras & Durgun, 2022). Tourists could rest easy knowing that Myanmar was a welcoming and safe destination because of these credentials, which could be seen in many promotional materials.

3.2 Digitalization and virtual tourism initiatives

In order to stay afloat and continue growing, Myanmar’s tourist industry had to undergo a digital change, which the COVID-19 pandemic hastened. In response to the travel restrictions, stakeholders quickly embraced digital solutions to sustain the industry and continue engaging with prospective tourists. Virtual tours of important sites like Mandalay, Bagan and Inle Lake rose to prominence as part of a larger trend towards virtual tourism (Su & Li, 2021). The virtual experiences showcased Myanmar’s cultural and natural treasures to an international audience, ensuring that the country remained prominent in the minds of potential tourists. Despite the worldwide travel embargo, interest in Myanmar as a vacation spot persisted, thanks in large part to these creative Internet experiences that highlighted the country’s attractions.

Digital marketing also saw a dramatic upturn in the sector. The tourism industry as a whole, from five-star hotels to mom-and-pop tour operators, has recently undergone a digital makeover, expanding their audience reach through digital advertising and social media (Myat, Sharkasi, & Rajasekera, 2023). Focus on three- and four-star hotels during the pandemic showed their adherence to international safety standards and WHO protocols. Interviews with guests and hotel managers in Mandalay and Muse confirmed their commitment to ensuring health and safety, a key industry concern (Oo & Batra, 2020). This change was essential in creating an online link between Myanmar’s tourist attractions and the international travel community, thereby allowing people to feel connected even when they can’t physically visit the country.

The improvement of online payment and booking systems was another important area of digitization. In the wake of the pandemic, the travel industry embraced more advanced e-commerce systems to facilitate speedy, contactless transactions (Headey et al., 2022). In addition to enhancing safety and convenience during the pandemic, this improvement set the sector up to better fulfil the demands of a tech-savvy customer base in the years after the event.

3.3 Shift towards domestic tourism

A strategic movement towards domestic tourism in Myanmar was initiated by the pandemic, which disrupted international travel. This move was driven by need and presented an opportunity for the business. The tourism industry had to shift its focus to domestic travellers in order to survive when borders were closed and international travel came to a standstill. Realizing the home market’s unrealized potential led to this change, which was more than just a quick fix for the crisis.

The various landscapes, historical locations and rich cultural history of Myanmar have long held the ability to captivate local audiences. But getting people from other countries to visit had been the main goal before the outbreak. Tourist businesses adapted their services to better suit the needs of the locals in response to the unexpected shift in demand. Marketing initiatives aimed squarely at Myanmarese citizens, more reasonably priced vacation packages and experiences tailored to local interests were all part of the plan (Boughton et al., 2023). Businesses and towns that relied significantly on tourism for revenue also benefitted greatly from efforts to boost domestic tourism. Attractions, hotels and resorts in the area shifted their focus to domestic tourists by lowering their prices and introducing new deals (Ferreira et al., 2021). Not only did these programmes aid companies in staying afloat, but they also contributed to the nation’s enduring love of discovery and travel.

More people became aware of and appreciated local places as a result of the emphasis on domestic tourism. As a result, more individuals felt a sense of belonging to their nation and pride in its diversity and beauty. In addition to boosting local economies, this domestic tourist push helped disperse the country’s economic advantages more uniformly. There will be long-term benefits for Myanmar’s tourism industry from the trend towards domestic tourism. It has shown how important it is to take a balanced approach that considers local and international tourists equally, so that the tourism industry may be more robust and viable in the long run.

4.1 Growing interest in outdoor and cultural experiences

There has been a noticeable uptick in interest in cultural and outdoor experiences among tourists since the COVID-19 outbreak. People started looking for places and things to do that would naturally make them feel more isolated from others while providing them with fulfilling experiences as the globe struggled with the limitations imposed by the pandemic. For instance, the resurgence of interest in the ancient city of Bagan offers an insightful example. Tourists are increasingly drawn to Bagan not only for its breath-taking landscapes and historic pagodas but also for the opportunity to engage in unique cultural experiences like traditional Burmese cooking classes, local artisan workshops and interactive community tours (Soe, 2023). This does not only corroborate the identified shift in preferences but also provides actionable insights into how other destinations in Myanmar can adapt to these emerging trends.

Urban attractions, amusement parks and overcrowded beach resorts were popular alternatives before the pandemic, so this change was a big deal (Zreik & Abunamous, 2020). This shifting dynamic became apparent in Myanmar as an increasing number of tourists, both local and foreign, began to take a keener interest in the country’s extensive cultural history and breath-taking natural scenery. Tourist interest increased at popular destinations such as Bagan, home to thousands of temples, the ancient city of Inle Lake and the Mergui Archipelago, known for its pristine beaches (Md Shahin & Hasan, 2023). These locations not only provide the peace and quiet of open, less populated areas, but they also gave visitors the chance to immerse themselves in Myanmar’s rich cultural heritage and enjoy some truly unforgettable adventures.

An additional benefit of the pandemic was the rediscovery of the value of cultural immersion experiences. Tourists started looking for ways to engage with locals on a deeper level, to learn about their traditions and culture. A worldwide movement towards responsible and experience tourism coincided with this change. Village homestays, traditional craft workshops and cultural excursions guided by local experts are just a few examples of the more customized and authentic experiences that tour operators and communities in Myanmar began to provide in response. Local economy and cultural preservation were both bolstered by these experiences, which also met the changing tastes of tourists (Htoo & Kyaw, 2023).

Outdoor pursuits such as bicycling, bird-watching and trekking also saw a surge in popularity (Buckley & Westaway, 2020). In addition to satisfying a rising demand for health and wellness-focused vacations, these activities gave visitors a chance to see Myanmar’s breath-taking natural beauty. Outdoor activities offered the ideal combination of excitement and health advantages, which had become more important due to the pandemic.

The pie chart in Figure 4 illustrates the shift in tourist preferences towards different types of experiences in the post-pandemic era. It shows the distribution of interest among various tourism experiences, with outdoor activities, cultural experiences and sustainable tourism making up the significant portions. This visual representation highlights the changing landscape of tourism preferences, where there is a clear inclination towards experiences that are more in harmony with nature, culturally enriching and environmentally sustainable. Such insights are valuable for understanding the evolving trends in tourist behaviour and can aid in strategizing the future direction of Myanmar’s tourism industry.

A more sustainable, authentic and wellness-oriented travel industry is emerging, and this trend for outdoor and cultural activities is a microcosm of it. Because of its abundant cultural and ecological attractions, Myanmar stands to gain a new audience of tourists in the aftermath of the pandemic if it takes advantage of this shift.

4.2 Sustainability and responsible tourism

The pandemic’s disruption of the global tourism industry has catalysed a significant shift towards sustainability and responsible tourism, a trend that is particularly relevant for a country like Myanmar (Higgins-Desbiolles, 2020). Travellers and industry players alike are becoming more aware of the negative effects that tourism may have on society, the environment and the economy, which is driving this change.

Because of the tourist embargo, Myanmar was able to take stock, re-evaluate and refocus its efforts on becoming a more sustainable destination. Striking a balance between the economic advantages of tourism and the need to conserve the country’s cultural and natural treasures became increasingly apparent as the key to recovery and long-term success. The importance of expanding tourism in a manner that promotes cultural heritage, supports local communities and respects the environment was once again highlighted after this revelation.

As a result of several efforts, sustainable tourism in Myanmar started to take form. Among these, it is important to highlight eco-friendly lodgings and eco-conscious vacation packages (Hameed, Hussain, & Khan, 2022). Reducing trash, conserving water and using renewable energy sources are just a few examples of the eco-friendly practices that hotels and resorts have begun to embrace. Not only did this cater to the growing number of environmentally concerned tourists, but it was also in line with worldwide environmental concerns.

Additionally, there was a movement towards community-based tourism projects, the goal of which is to make sure that local communities get their fair share of the tourist boom. Homestays, community-led tours and traditional activity participation were some of the ways in which these programmes immersed visitors in local life while also reinvesting a large sum of money into the local economy. Both the local economy and cultural traditions and crafts are benefitted by these kinds of experiences.

Ethical considerations, such as preserving native customs and languages, promoting equal job opportunities in the tourism industry and limiting visitors to environmentally fragile regions, became more prominent in the context of responsible tourism (Koščak & O’Rourke, 2023). A culture of respect and sustainability was promoted through campaigns that tour operators and government entities launched to educate both tourists and locals about responsible tourism practices. The tourist business in Myanmar has undergone a significant transformation, with a focus on sustainability and responsible travel. It lays the groundwork for a more robust and ethical tourism industry while simultaneously catering to passengers' evolving tastes. Environmentalists, community members and Myanmar’s tourism industry as a whole stand to gain in the long run from this strategy.

5.1 Policy measures for tourism sector support

The government of Myanmar took numerous steps in reaction to the pandemic-induced tourist industry crisis, with the primary goals of bolstering the sector immediately and setting the stage for a long-term recovery. The government launched a number of programmes to mitigate the effects of the pandemic and aid in the recovery of the industry because of its critical role in generating economic growth and jobs. In 2019, Myanmar’s tourism industry welcomed over 4.36 million tourists. However, the numbers dropped drastically due to the COVID-19 pandemic, with only 0.9 million tourists in 2020 and 0.13 million in 2021 (Myanmar Ministry of Hotels and Tourism, 2021).

Introducing financial assistance packages was one of the main policy actions. Businesses in the tourist industry were the intended recipients of these packages, which comprised subsidies, low-interest loans and other forms of fiscal relief (Allaberganov et al., 2021). Many industry small and medium-sized enterprises (SMEs) relied on this financial assistance because they were having trouble making ends meet when tourism came to a sudden stop (Radivojević et al., 2023). The plan all along was to give these companies a financial boost so they could weather the storm and hold on to their workers.

Both monetary aid and regulatory changes were made by the government to better suit the new situation. Businesses in the tourist industry, for example, have had their licensing procedures simplified and regulatory impediments reduced in an effort to facilitate their ability to innovate and adapt to new circumstances. Businesses were able to swiftly adapt to changes in the market, such as a focus on domestic tourism or the implementation of new health and safety regulations, thanks to the regulatory leeway (Holloway & Humphreys, 2022).

In addition, the government has made measures to improve the tourist industry’s infrastructure and capacities. Among these measures was funding digital infrastructure to facilitate the sector’s transition to digital platforms and immersive virtual experiences (Myat et al., 2023). Workers in the tourist industry were also given training and capacity-building programmes to help them become more knowledgeable and prepared for life after the pandemic. The government of Myanmar took these policy steps, which helped the tourist industry right away and set the stage for its eventual revival. The government’s action in resolving the industry’s financial, regulatory and capability issues shows its dedication to bolstering and reviving a critical sector of the economy.

To address the role of government policies in aiding the recovery of Myanmar’s tourism sector, it is recommended that the government develops comprehensive recovery plans encompassing financial support, tax reliefs and regulatory adjustments for tourism businesses. Investing in infrastructure, with an emphasis on sustainability and accessibility, is crucial to attracting a broader spectrum of tourists. Moreover, the government should implement targeted initiatives to promote domestic tourism, which can serve as a buffer against international market fluctuations and sustain the industry during periods of decreased foreign tourist arrivals.

5.2 Role of international agencies and partnerships

As the COVID-19 situation unfolded, the importance of international agencies and collaborations in bolstering Myanmar’s tourism economy grew. The sector was able to recover from the pandemic and become more resilient in the future, thanks to the invaluable advice, resources and knowledge offered by these partnerships. Important international organizations that provided strategic counsel and financial aid were the World Bank and the UNWTO. Myanmar was able to better align its recovery strategy with worldwide best practices because of the insightful analysis of global tourist trends. The development of local policies and activities that were effective and in line with global trends in the tourism industry relied heavily on this direction.

Projects aiming at sustainable tourist development and infrastructure improvements also received substantial financial backing from international organizations. In the wake of the pandemic, these monies went into improving Myanmar’s tourist infrastructure, making the country’s attractions more welcoming and secure for visitors. To further guarantee that tourism’s advantages were dispersed more fairly and in line with sustainable development objectives, they also backed community-based tourist initiatives.

Through collaborations with global NGOs and professionals in the field, knowledge in sustainable tourism practices and digital marketing tactics were brought to the table. In order to better adapt to the changing terrain, Myanmar’s tourist sector was able to benefit from knowledge transfer and capacity-building through these partnerships (Grundy-Warr & Lin, 2020). Skills and expertise were shared through workshops, training programmes and collaborative projects, which improved the sector’s overall competency. More than that, though, these partnerships with other countries raised Myanmar’s prominence internationally. Myanmar should convey its preparedness to welcome tourists in a responsible and safe way by interacting with international organizations and partners. The country’s cultural and ecological treasures were able to reach more people through these collaborations, which kept and increased interest in Myanmar as a tourist destination.

In terms of international cooperation, strengthening partnerships with global tourism organizations is essential for knowledge exchange, financial assistance and access to best practices. Encouraging foreign investment in sustainable and eco-tourism projects will not only boost the sector but also promote environmentally responsible tourism. Collaborative marketing efforts with neighbouring countries to promote regional tourism and create attractive multi-destination packages can also play a significant role. These measures, when combined, are aimed at fostering a more resilient, sustainable and diversified tourism industry in Myanmar, capable of withstanding future challenges and contributing effectively to the country’s economic recovery.