JAKARTA - The Kempinski Hotel Group has just announced they have had to make the tough decision, to stop the operations of the Kempinski Hotel Naypyitaw Myanmar.
"We have worked to maintain the high quality of service that guests deserve. However, the current operating environment does not allow us to do so", they said in a press release, citing Mizzima October 17.
The 5-star hotel group stopped accepting bookings, entertainment, or other services provided at the hotel starting October 13.
The closure of one of these luxury hotels marks the latest blow to Myanmar's tourism industry, which has been devastated by the COVID-19 pandemic and the February 1 military coup.
The hotel, where US President Barack Obama stayed during his 2014 visit to Myanmar, is known to have sent letters to guests informing them of the decision, a staff member told Myanmar Now, quoted October 19.
Many international companies have fled Myanmar since the military regime seized power, plunging the economy into chaos, exacerbating the already dire situation caused by the pandemic.
Naung Naung Han, chairman of the United Myanmar Travel Association, said the lack of international visitors was driving luxury hotel operators away.
"The number of tourists has decreased drastically. They are also worried about the political stability of the country. All this is causing them to leave the country", he said.
Some hotel businesses stay afloat by serving local tourists and long-stay guests. However, the high overhead costs of major international hotel chains mean they are dependent on foreign visitors. Meanwhile, international tourists have been banned from the country since March last year.
To note, Kempinski Hotel Naypyitaw has 141 rooms and has accommodated international government officials, ambassadors, and business travelers since opening in 2014.
One of Myanmar's most famous tycoons, Aung Ko Win, is an investor in the hotel through his company Kanbawza Group, which partnered with Jewelry Luck Company to provide US$45 million for the project.
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Meanwhile, Nyo Aye, director of the military regime-controlled tourism ministry, said in early September, about 225 of Yangon's 483 hotels had closed. Among them is the Sule Shangri-La, formerly known as the Traders Hotel.
Last week, British American Tobacco joined the rush of major multinational companies out of Myanmar.
The Myanmar Coup. VOI editors continue to monitor the political situation in one of the ASEAN member countries. Civilian casualties continued to fall. Readers can follow news about the Myanmar military coup by tapping this link.
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