March 5, 2018
- Deal to purchase luxury yachting business marks the first acquisition by Memories Group as it builds on its integrated tourism platform in Myanmar
- Burma Boating offers tourists a unique experience in the Mergui Archipelago
- Mergui Archipelago is expected to receive tourism boost as tender to upgrade the Kawthaung domestic airport to an international airport is in progress
SGX-Catalist listed Memories Group Limited and together with its subsidiaries, a Myanmar-based tourism-focused company, has entered into a sales and purchase agreement with Tint Tint Travel and Tours Company Limited and Freepier Limited to acquire Burma Boating business for a purchase price of approximately US$1.0 million, which will be satisfied in cash and funded by the Group’s internally generated funds (the “Acquisition”).
This is Memories Group’s first acquisition since its listing in January 2018 and marks the commencement of Memories Group’s expansion plan to further build an integrated tourism platform.
Established in 2014, Burma Boating is a well-known luxury yachting company that offers its guests a premium cruising experience on luxury yachts in the Mergui Archipelago in southern Myanmar. The acquisition will see Memories Group take ownership of Burma Boating’s assets, including the flagship Meta IV yacht, the “Burma Boating” brand, as well as existing contracts and bookings.
Burma Boating complements Memories Group’s portfolio of quality hospitality assets including its iconic hot-air balloon business in Bagan and Inle. The acquisition target which logged a turnover of approximately US$1.0 million last year is earning accretive and will enable Memories Group to extend its earnings base, as well as favourably enhance its portfolio exposure to the growing tourism market.
Mr Serge Pun, Executive Chairman of Memories Group commented, “Given its luxury service and tour experience, the acquisition of Burma Boating represents an exciting opportunity for Memories Group to broaden its experiences portfolio and enlarge its footprint in the Myanmar tourism industry. We believe that this acquisition will enhance our financial performance and boost our presence in Mergui Archipelago, which is gaining increasing popularity as tourist destination.”
In 2017, the Myanmar government earmarked the Mergui Archipelago as the third tourist destination of Myanmar, following Bagan and Inle. Remotely located in the Andaman sea, the Mergui Archipelago consists of more than 800 islands of various sizes and is noted for its untouched beauty.
Tourists typically spend a few nights to weeks on luxury yachts in the Mergui Archipelago. The government’s tourism initiative is to develop the tourism market in the Mergui Archipelago, as well as upgrade Kawthaung airport from a domestic to an international airport.
The growth potential of the Myanmar tourism industry is promising and has seen significant increases in tourist arrivals over the years. The Myanmar government expects the tourism industry to grow by 6.8% from fiscal year 2017 to 2018.
Burma Boating owns the 85-foot, 4-cabin Meta IV yacht and partners with seven other yacht owners’ vessels, of which six are classic sailing yachts and one is a historic motor yacht. Private charter rates for a whole boat start from US$2,000/night for a 3-cabin yacht to US$7,200/night for a 6-cabin yacht.
Alternatively, travellers can book a cabin and join a cruise with other travellers at rates starting from US$520/person per night. Reservations are usually done two to four months prior to the trip, and Burma Boating to date has secured pre-bookings all the way till end May 2019.
Burma Boating has been rated excellent on TripAdvisor by many travellers, and they have also been featured on many renowned travel magazines and publications such as National Geographic Traveler, Travel+Leisure, Condé Nast Traveller and DestinAsian.