Ilagan, J - Case Study
Ilagan, J - Case Study
CASE STUDY
Submitted to:
DR. JOANA MARIE M. TAYAG
February 2025
1
EXECUTIVE SUMMARY
Myanmar’s tourism industry is facing a serious challenge with the rise of zero-
dollar tourism - a marketing strategy that is more likely to become a scheme that
exploits tourists to get a cheap tour package offered by Chinese tour operators with
strict itineraries that are also linked with their partnered Chinese-business owners to
maximize profit and revenue. The impact and influence of this system further dominate
Myanmar's tourism industry as the country eases its visa restriction to Chinese visitors.
More than this, it takes advantage of the political turmoil in Myanmar over the issue of
the Rakhine crisis and violence, which causes a decline in Western and European
tourists and a loss of jobs for English-speaking tour guides. They exploit these tour
guides for lower-paying job offers to lessen cost expenses while issues over Chinese-
speaking tour guides increase. Concerning reports include disrespect of cultural
norms, spreading of misinformation, and exploitation of tourists to overpriced products
from Chinese-owned businesses. As an overall analysis of the impact and influence
of zero-dollar tourism over local communities, tourists, and Myanmar's tourism
landscape; it raises numerous issues including its ethical, legal, and cultural concerns.
2
CASE OVERVIEW
BACKGROUND
This case study explores and deeply investigates the issues of zero-dollar
tourism in Myanmar – a country in Asia and considered one of the last countries in the
Southeast East Asia Region that open its doors to foreign travelers (Ministry of Hotels
and Tourism [MOHT], 2021) – and the impact it brings in the country's tour guides,
local businesses, and governmental regulations which also involves its cultural,
ethical, and legal concerns.
The primary key players in this case study centralize the concern to Myanmar's
tour guides and the Chinese tour operators that promote zero-dollar tourism or zero-
budget tours. Due to the decline in the job demands for English-speaking tour guides,
many of them are left with no choice but to accept lower wages job offers from those
Chinese tour operators just to stay employed and support their financial needs. Many
of them were hired in name only and not providing guiding services just for the sake
of showing that their offered cheap tour packages are accompanied by a licensed tour
guide. On the other hand, unlicensed Chinese-speaking tour guides hired by those
Chinese tour operators have raised concerns from tourists as they are reported to be
doing unethical practices including spreading misinformation and pressuring tourists
to buy overpriced products from their partnered Chinese-owned shops for the purpose
of earning commissions. Aside from this, further reports from local residents portray
their frustration with zero-dollar tourists due to disregarding cultural norms including
showing disrespect to religious sites and restricted areas.
Myanmar's Ministry of Hotels and Tourism, as the primary agency of the country
that supervises tourism ventures in the country, takes this as a threat and as a
response, they continuously crack down on these operators with illegal guides to
prevent further tax revenue losses by taking advantage of the lack of digital currency
system and utilizes Chinese digital platforms instead to avoid taxes.
Overall, this study underlies the cultural, ethical, and legal concerns over zero-
dollar tourism, and how Myanmar navigates these pressing concerns and challenges
while putting the country's economic growth, ethical tourism practices, and local
interest at the center of consideration.
3
CONTEXT
However, the political issue of Rakhine Crises and Violence – a long-time civil
war in the country concerning humanitarian concerns in Myanmar's Rakhine State
over discrimination against Muslin ethnic groups (Center for Preventive Action, 2025)
–gained the attention of Western and European travelers, resulting in the decline of
tourist from this market which directly influences job demands for licensed English-
speaking tour guides resulting to their massive unemployment. In response, Myanmar
eased the visa requirements for Chinese tourists led to the rise of Chinese visitors –
from 300,000 in 2018 to 750,000 in 2019. This increase provides new business
opportunities for both local and foreign investors. Specifically, this also causes the rise
of zero-dollar tourism, which is a business model by Chinese tour operators in which
they take control over the entire travel experience of their clients and directly link it
with their collaborated Chinese-owned businesses. However, it also poses a threat to
Myanmar's economy due to the challenge of monitoring taxes from these ventures and
the uproar to many local entrepreneurs as they lose the opportunity to benefit from
this.
PROBLEM STATEMENT
The rise of zero-dollar tourism in Myanmar and its cultural, ethical, and legal
concerns among tour guides, tourists, the local community, and the local government
resulted in the balance of disruption, a struggle to protect cultural and economic
interests and initiating government policies within the tourism landscape in the country.
4
ISSUES IDENTIFICATION AND ANALYSIS
KEY ISSUES
This case study raises several cultural, ethical, and legal issues and concerns
in Myanmar including the following:
1. Unethical practices and operations initiated by unlicensed tour guides.
2. Exploitation of English-speaking tour guides.
3. Exploitation of tourists and consumers.
4. Cultural insensitivity and disrespect for local norms.
5. Violation of legal and local tourism regulations.
ANALYSIS
To explore and better understand the underlying key issues identified in this
case, a comprehensive analysis was performed and initiated; this includes providing
supporting data and evidence to the case, applying of relevant framework, and
determining the root causes of each issue which can be used as a guide for
recommendations to solve the case.
Analytical Tool:
Porter’s five forces were utilized to better assess and analyze the impact
of unlicensed tour guides.
5
Many untrained and unlicensed tour guides
Threats of New Entrants can easily penetrate the market and can
pose a threat to licensed tour guides.
Travelers may choose self-guided tours
and online travel blogs due to the unethical
Threat of Substitutes
practices issues and concerns among zero-
dollar tours.
Root Cause:
The increasing issue of unethical practices and behaviors of some zero-
dollar tour guides was primarily rooted of the idea of the zero-dollar tour itself
promoted by many Chinese tour operators causing the prioritization of profit
and revenue instead of balancing profit and giving important and highlights
guest experiences. Moreover, the weak enforcement of ethical tourism
guidelines and lack of penalty mechanisms in Myanmar causes this scheme to
continuously penetrate the tourism industry in the country.
Analytical Tool:
To better analyze the underlying issue of over-exploitation among
English tour guides, a SWOT Analysis was utilized.
STRENGTH WEAKNESSES
• Highly trained and experienced • Declining numbers of Western
English-speaking licensed tour tourist arrivals in Myanmar
guides • Limited ability to actively participate
in Chinese-speaking tours
OPPORTUNITIES THREATS
• Growing Chinese tourist market • Zero-dollar tours reduce job
• Potential for cross-cultural training demands for English-speaking tour
guides.
• Increase of illegally operated zero-
dollar tours by Chinese tour
operators
6
Root Cause:
The primary root cause of the exploitation of English-speaking tour
guides was the political concerns in Myanmar concerning the growing
sentiments in the debate regarding a tourism boycott over the Rakhine crisis
and violence which caused the declining number of Western and European
travelers. If the tension and discrimination continue between Myanmar's
Rakhine State against Muslin ethnic groups and remain unsolved, more critics
may arise in the future that could further lead to a decrease in the overall
number of foreign travelers in other countries which could further threaten the
job placement among English-speaking tour guides.
Analytical Tool:
The Value Chain Analysis was utilized to systematically analyze the
issue concerning the exploitation of Tourists and consumers in Myanmar.
Root Causes:
The primary concern over consumer exploitation underlies the increase
of zero-dollar tours that promote tour guides to perform unethical practices
including pressuring tourists to purchase products that is overpriced for the
sake of gaining profit and revenue.
7
4. CULTURAL INSENSITIVITY AND DISRESPECT FOR LOCAL NORMS.
Analytical Tool:
The analytical tool used to further explore the issue on cultural
insensitivity among tourists was Hofstede’s Cultural Dimensions Theory to
assess the behavioral difference between the locals and tourists.
IMPACT OF ZERO-DOLLAR
CULTURAL DIMENSIONS
TOURISTS
Zero-Dollar tourists ignore local
authorities and the community's
instruction including their religious and
Power Distance
cultural norms causing cultural
insensitivity and frustrations among
locals.
A group mentality may develop among
Individualism vs Collectivism zero-dollar tours that it leads to a lack of
respect for local customs.
Tourists may unconsciously break the
local regulations and policies due to the
Uncertainty Avoidance
lack of guidance, prior education, and
orientation from their tour guides.
The short-term focus on the prioritization
of gaining profit leads to disregard for
Long-term vs. Short-term Myanmar’s culture and religious norms
Orientation over promoting guest experience to gain
the attention of the tourists to come back
again in the future.
Root Causes:
Limiting the cost for zero-dollar tours encourages Chinese tour operators
to hire English-speaking tour guides in name only and allow unlicensed and
inexperienced tour guides to take charge of these tours causing the tourists left
unmanaged and uneducated about the religious and cultural norms that they
should follow.
8
5. VIOLATION OF LEGAL AND LOCAL TOURISM REGULATIONS.
Analytical Tool:
To further assess and understand the issue on the violation of legal and
local tourism regulations among Zero-Dollar Tours, PESTEL Analysis will be
utilized to identify and better understand the external factors in Myanmar’s
tourism landscape that cause this issue.
Root Cause:
At the heart of this issue was the poor enforcement of rules and
regulations, especially concerning the operation of foreign-owned businesses
in the country. Furthermore, the lack of digital payment options and regulations
causes them to bypass their tax system.
9
CASE QUESTION INTEGRATION
The following case study questions were answered by personal opinionated
perception with consideration of the ethical, cultural, and legal aspects identified in the
above-conducted assessment and analysis.
2. Can you suggest an alternative option for unemployed tour guides who choose
not to work on zero-dollar tours?
Job opportunities within the tourism industry are limitless considering it
is multifaceted comprising sectors including airlines, amusement parks,
lodging, etc., many alternative options and doors to open are waiting for them
to be unveiled. One option that they could take into consideration would be to
work as a freelance guide that offers personalized and high-quality tours to
independent travelers. Moreover, they could focus on establishing their
specialization just like in eco-tourism, heritage tourism, or even adventure
tourism which could attract more responsible tourists who value meaningful
travel experiences. In consideration of the language barriers for Chinese
travelers, they could increase their competency by learning basic Chinese to
expand their job prospects while maintaining professional and ethical
standards. Additionally, the advancement of technology widens job
opportunities for tour guides just like the increasing trends for virtual tourism by
offering online guided experiences, which would allow them to still utilize their
skills while avoiding personal involvement in such unethical practices. Having
all these alternatives would contribute to sustaining their career without
compromising their professional integrity. These are also just a testament to the
wide range of career opportunities that hospitality and tourism can offer.
10
3. If you were an unemployed tour guide, who did not speak Chinese and you
were asked to conduct a tour for a zero-dollar tour group, what would you do?
If I were to put myself in the shoes and situation of an unemployed tour
guide in Myanmar, considering my financial needs to survive in this harsh reality
that money is needed to buy your daily needs for yourself and for your family, I
would also definitely struggle between choosing to take the offer or not.
However, just thinking that the food that I ate and provided for my family was
coming from unethical, it would put me in an uncomfortable position, and I felt
guilty due to the fact that I was exploiting myself through such unethical
practices by supporting such businesses, I would rather decline the offer. But
in case, I ever found myself in a situation where I had really no choice but to
take the work for a zero-dollar business tour, I would not let myself be just a
silent guide that watches over for unethical practices to keep happening. I’d
make ensure to educate the tourist well and help them in any way possible to
maximize and enjoy their entire travel.
11
RECOMMENDATIONS
A. Actionable Recommendations
The Ministry of Hotels and Tourism (MOHT), as the primary agency of
Myanmar that regulates tourism ventures in the country, should enhance
its enforcement of policies and guidelines against unlicensed tour guides
and the negative impact of zero-dollar tours. Having an increase in the
penalties and having a strict inspection would limit the operation of illegal
tour operators and unethical practices concerning unlicensed tour guides.
Strict monitoring of these plans needs continuous collaboration and
planning with the law enforcement agencies in Myanmar.
B. Implementation Plan
• Phase 1 (0-3 months)
Conduct a thorough audit, investigation, and inspection among operating
tour operators, specifically those that offer zero-dollar tours to identify all
unlicensed guides and stop the business operation of those illegal
businesses.
• Phase 2 (3-6 months)
Establish a task force together with the country’s law enforcement
agency to completely monitor illegal guide activities and penalize
violators according to the established policy.
• Phase 3 (6-12 months)
Introduce stricter laws and revise licensing requirements to prevent
further loopholes in the system.
C. Resources Needed
In accomplishing this plan, several resources are needed to successfully
integrate this strategy including:
• Securing government or agency funds to conduct the inspection and
monitoring.
• A workforce that will serve as a legal team that will strictly supervise and
enforce the established regulations.
• Training programs for inspectors and law enforcement.
12
D. Key Players and their responsibilities
The following key players play an important role in successfully putting
this plan into realistic action.
• Ministry of Hotels and Tourism – Enforce and oversee the regulations
• Law Enforcement – Assist in conducting crackdowns
• Tour Guide Associations – Report illegal practices and cooperation
with legal authorities in case of injustice.
E. Expected Outcomes:
Having this actional plan implemented, the following outcomes may be
expected to happen:
• Decrease in the number of operating unlicensed tour guides in Myanmar.
• Improve Myanmar’s overall tourism landscape and reputation through
the promotion of ethical standards.
• Increase in the trust in Myanmar’s tourism industry gaining attractions
for more foreign travelers.
A. Actionable recommendations:
The following actionable plan can be implemented to provide fair wages and
better working conditions among licensed tour guides in Myanmar:
• Myanmar’s government should establish a minimum wage for licensed
tour guides to prevent concerns of being underpaid.
• Provide incentives or corresponding benefits for operators that hired
licensed tour guides.
• Establish a tour guide certification program to increase credibility among
licensed tour guides.
B. Implementation Plan:
• Phase 1 (0-3 months)
Conduct wage surveys among licensed tour guides for a better
understanding of wage thresholds and to set fair wage guidelines.
• Phase 2 (3-6 months)
Implement policies that promote and protect the implementation of fair
wages, and establish direct booking platforms for independent tour
guides.
• Phase 3 (6-12 months)
Provides incentives to local travel agencies that hire licensed guides.
13
C. Resources Needed:
In accomplishing this plan, several resources are needed to successfully
integrate this strategy including:
• Collaboration and memorandum of agreement with hotels and travel
agencies.
• Financial support from Myanmar’s tourism development funds.
• Direct booking platforms for direct tour guide bookings.
E. Expected Outcomes:
Having this actional plan implemented, the following outcomes may be
expected to happen:
• Job security among licensed tour guides.
• Fair wages and benefits for tourism workers.
• Reduce dependence of Myanmar’s tourism landscape on zero-dollar
tours.
A. Actionable Recommendations:
The following actionable plan can be implemented to promote other
alternative tourism ventures for unemployed tour guides:
• Explore Myanmar’s other tourism ventures and start establishing
specialized sectors including eco-tourism and heritage tourism.
• Encourage English-speaking tour guides to offer specialized tours
targeting both markets from Western, European, and Asian tourists.
• Promote Myanmar Tourism by creating several publications and
marketing materials through digital platforms and utilization of social
media, and other websites to attract more foreign travelers.
14
B. Implementation Plan:
• Phase 1 (0-6 months)
Explore other tourism ventures in the country and identify high-potential
tourism sectors by conducting research and having an assessment of
the behavior of the market and utilizing the relevant analytical tool that
identifies other opportunities.
• Phase 2 (6-12 months)
Establish joint partnerships and collaboration with known international
travel platforms to broaden network and global influence. Making
• Phase 3 (12+ months)
Launching a marketing campaign that promotes and encourages other
foreign travelers by featuring the diverse culture and natural landscape
that Myanmar can offer.
C. Resources Needed:
In accomplishing this plan, several resources are needed to successfully
integrate this strategy including:
• Digital marketing team and funds to create social media campaigns.
• Training manuals and guidelines about the other highly-potential tourism
sector including eco-tourism and heritage tourism.
E. Expected Outcomes:
Having this actional plan implemented, the following outcomes may be
expected:
• Less reliance on zero-dollar tourism from Chinese tour operators.
• Creating a more diverse and sustainable tourism industry in Myanmar.
• The increase in tourism ventures creates opportunities for tour guides
and other local communities and businesses.
15
4. PROMOTING CULTURAL AWARENESS AND RESPONSIBLE TOURISM
A. Actionable Recommendations:
The following actionable plan can be implemented to promote cultural
awareness and increase the influence of responsible tourism among tour
operators, tour guides, and tourists as well:
• Conduct and initiate cultural sensitivity training, cross-cultural exchange,
and regular orientation for both tour guides and tourists when they visit
the country.
• Implement strict behavioral guidelines at religious and cultural sites by
employing individuals that supervises those protected places and
through increasing penalties for violators.
• Promote community-based tourism that encourages foreign tourist to
appreciate, embrace, and show respect for Myanmar’s diverse
traditional and cultural norms.
B. Implementation Plan:
• Phase 1 (0-6 months)
Start developing training modules on cultural awareness that primarily
focus on the objective of increasing cultural sensitivity among tour guides
and tourists.
• Phase 2 (6-12 months)
Conduct multiple training programs within hotels, tour agencies, and
other hospitality and tourism establishments making it a requirement for
accreditation.
• Phase 3 (12+ months)
Introduce mandatory compliance with Tourist Code of Conduct for those
foreign travelers visiting Myanmar.
C. Resources Needed:
In accomplishing this plan, several resources are needed to successfully
integrate this strategy including:
• Collaboration and partnership with cultural organizations and local
hospitality and tourism businesses for the implementation of cultural
awareness training.
• Funding to be used for the awareness campaigns for both hospitality and
tourism organizations, their employees, and the visiting tourists in
Myanmar.
• Digital guides and educational workshop modules that would be used as
a manual for Tourist Code of Conduct.
16
D. Key Players and their responsibilities:
The following key players play an important role in successfully putting
this plan into realistic action.
• Ministry of Hotels and Tourism & Cultural Affairs Ministry in
Myanmar – Take the initiative in the formulation, implementation,
monitoring, and assessment of cultural training programs.
• Tour Operators and other Tourism and Hospitality Organizations –
Ensures that their employees and the foreign tourists that they
accommodate strictly follows the cultural norms and protect the
preservations of the tourism destinations in Myanmar.
• Local Community Leaders – As prominent figures, they will serve as a
role model by letting them participate in promoting responsible and
sustainable tourism.
E. Expected Outcomes:
Having this actional plan implemented, the following outcomes may be
expected:
• Overall increase on the cultural sensitivity of both tourist and hospitality
and tourism employees.
• Reduced the negative impacts on Myanmar’s heritage site and further
preservation of the treasured culture and history of the country.
• Establish a sustainable tourism practices for responsible tourism.
A. Actionable Recommendation:
The following actionable plan can be implemented to provide fair wages and
better working conditions among licensed tour guides in Myanmar:
• Strengthen tax regulations and monitoring over Chinese-owned tour
businesses especially those promotes zero-dollar tourism.
• Establish a secured digital currency platforms.
• Require tour operators to process all payment transaction from tourism
expenditures through Myanmar’s financial system.
• Develop a digital tax tracking system to monitor all transaction related to
tourism ventures.
B. Implementation Plan:
• Phase 1 (0-6 months)
Review the current guidelines over tax policies and regulations of the
country to identify further loopholes and provide corresponding solutions
• Phase 2 (6-12 months)
Enforce strict penalties for those will be proven guilty of tax evasion.
17
• Phase 3 (12+ months)
Implement a mandatory financial tracking system over tourism
businesses to completely monitor their records
C. Resources Needed:
In accomplishing this plan, several resources are needed to successfully
integrate this strategy including:
• Tax auditing teams and financial analysts.
• Secured digital payment tracking software and applications.
• Established cooperation and linkage between Ministry of Hotel and
Tourism, Myanmar’s Finance Ministry and other existing banking
institutions in the country.
E. Expected Outcomes:
Having this actional plan implemented, the following outcomes may be
expected:
• The tax revenue received by the government from tourism expenditures
will automatically increase.
• Prevent further financial exploitation of Chinese tour operators and
ensuring their compliance with taxation.
• Established a more regulated and transparency tourism economy in
Myanmar.
18
CONCLUSION
To create a more ethical, fair, and sustainable tourism sector, a set of actionable
was proposed for implementation as a recuperating measure over the impact of issues
and concerns on zero-dollar tourism in Myanmar. Strengthening regulations against
unlicensed tour guides will ensure that only trained and qualified professionals will be
allowed to operate. Establishing fair wage policies and better working conditions will
help protect local guides from being underpaid and undervalued. Additionally,
promoting alternative tourism markets such as eco-tourism and heritage tourism will
reduce reliance on exploitative zero-dollar tours and create diverse job opportunities
for local guides. Encouraging cultural awareness and responsible tourism through
training programs and clear guidelines will also help restore respect for Myanmar’s
traditions, preventing further damage to its cultural sites. Lastly, implementing stricter
tax regulations and financial tracking will ensure that the country retains the economic
benefits of its growing tourism sector rather than allowing profits to flow out through
unregulated foreign businesses.
19
REFERENCES
Center for Preventive Action. (2025). Civil War in Myanmar. Council on Foreign
Relations. https://www.cfr.org/global-conflict-tracker/conflict/rohingya-crisis-
myanmar
Tardi, C. (2024, July). Value Chain: Definition, Model, Analysis, and Example.
Investopedia. https://www.investopedia.com/terms/v/valuechain.asp
20