The National Economic and Social Advisory Council (Nesac) is making a feasibility study of tourism and fisheries investment in Burma’s Tavoy and Mergui townships, opposite the western provinces of Ratchaburi and Kanchanaburi.

The study follows a recent request from local businessmen, who said cross-border investments would generate economic growth and improve the lives of people in the western region.

Parinya Sirisarakarn, secretary of Nesac’s committee on industry and commerce, said the two Burmese towns were ideally located for Thai businessmen.

Tavoy and Mergui were within 150km of the Thai border. The Kanchanaburi-Tavoy highway would open the area up to investment and development.

Mr Parinya said the highway was a joint venture between Thai contractors and Burmese military authorities.

Construction should have started several years ago but was delayed because of the Thai companies’ financial problems and lack of support from the Thai government.

“Kanchanaburi and Ratchaburi provinces are likely to become a tourism and business hub once the investment plan in neighbouring Burmese cities materialises,” he said. The scheme would also boost Burma’s economic growth through increased employment.

The Nesac committee members had recently made a study trip to Tavoy and Mergui and concluded Tavoy had a high potential for tourism because of its abundant natural resources and Mergui was suited to the fishery industry.

Under the Burmese government’s economic development policy, Mergui would be developed into a regional centre for the fishery industry. The town also had long beaches that could compete with Thailand’s famous beaches in Phuket and other islands.

It was very likely foreign investment would flow into the two townships once the Burmese government opened the country for tourism, said Mr Parinya.

However, Thai businessmen could possibly be left behind. He gained the impression the Burmese prefer investors from countries other than Thailand.

Investors from Malaysia, Singapore, South Korea and Japan already had joint investments with local businessmen and Burmese authorities in Tavoy and Mergui.

“The Thai government should work harder on fostering Thai-Burmese relations, so the Burmese have more trust and better attitude towards Thai investors,” he said.

Mr Parinya said the feasibility study was due for completion in a year.

Tiwa Supajanya, director of the Thai Settlement Institute, said the study should not only focus on Kanchanaburi and Ratchaburi provinces, but also on Prachuap Khiri Khan, which was also close to Mergui.

In the old days, merchants and armies used Prachuap Khiri Khan as one of the main routes to travel to Mergui, he said.

Mr Tiwa suggested the Nesac committee study geographical information and aerial maps in the drafting of the cross-border investment plan, so Thai business investors would be better informed.