The Vital Role of Institutional Capacity Interrelation with Impact of Sustainable Tourism Development: A Case Study of Inle Region, Myanmar

Abstract

This article intends to discuss the relationship between institutional capacity and the impact of sustainable tourism development beyond COVID-19 pandemics and political instability as a case study of the Inle region, Myanmar. According to the World Tourism Organization, direct tourism jobs (between 100 to 120 million) and related services industries (144 million workers worldwide) are currently at risk. Although Myanmar’s tourism industry directly supported 570,000 jobs (2.5% of total employment) in 2017, those good results turned the whole tourism industry upside down beyond 2020. Especially, carrying capacity in the tourism sector is facing huge challenges due to a shortage of the tourism workforce. Meanwhile, most tourism-skilled laborers are no longer in the right position because of brain drain and survival situations. The data for this study were mainly collected from secondary sources, like data issued by government authorities in Myanmar. Besides, the author interviewed the leading local service providers in private sector institutions stationed in the Inle Lake region. Moreover, there are two issues to be found: (1) economic downsize due to fewer tourists arriving; and (2) shortage of skilled laborers in the tourism sector is being caused by the impact of institutional capacity, which is to be affected by sustainable tourism development by analyzing the qualitative research approach. However, not only the public sector but also private sector institutions are continuously emphasizing capacity-building issues as recommendations.