Quarterly Business Magazine

License Fees Announced for Travel Companies with Outbound Trips

Posted :
Tuesday, February 17, 2015

Yangon – The Ministry of Hotels & Tourism of Myanmar has set the license fees for travel companies with outbound trips: 400,000 kyats for citizens owned companies and US$ 2,500 for foreign owned companies.

The ministry started allowing outbound trips at the beginning of February and announced the license fees on February 10th.

For joint-venture companies, foreign investors will pay US$ 2,000 and their local partners will pay 250,000 kyats.

“These fees are not too different from those of inbound tour companies and are affordable for small and medium sized companies too. The problem for the small and medium sized companies is the mandatory reserve of 10,000,000 kyats,” said Daw Sabei Aung, Managing Director of Nature Dream Tourism Company.

The Ministry requires outbound tour companies to set aside 10,000,000 kyats as reserves in a bank. According to Daw Sabei Aung, for large companies, the amount is not a problem, but for the others it is sizable.

According to U Naung Naung Han, General Secretary at the Union of Myanmar Travel Association (UMTA), a number of companies have already applied for licenses to operate outbound trips.

At the end of 2014, there were a total of 1,623 travel and tour companies under the license from the Ministry of Hotels & Tourism. Among them, 1,589 were citizens owned tourism companies, 33 were joint-venture companies, and one was foreign owned company. Compared with 1,350 travel and tour companies in 2013, 2014 saw an increase of 273.

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