An Italian company has been approved to construct a USD 3.2 million hotel in Kawthaung, at the southern tip of Myanmar. According to a Myanmar Times reports, The Directorate of Investment and Company Administration (DICA) granted approval for the beachside resort to be built with a local partner, Myanmar Green Century, on Kyun Mei Gyi island.

Although Kawthaung and its surrounding beaches have only recently become viable destinations for the majority of tourists, this new investment could be a strong sign for Myanmar’s tourism industry. It has shown disappointing growth in Myanmar’s democratic era.

The southern peninsula in particular has drawn the interest of the public and private sectors. The industry seeks to add its pristine beaches to Myanmar’s list of must-see destinations. The Department of Civil Aviation recently invited tender bids to help renovate and expand the Tanintharyi Airport. Golden Myanmar Airlines cited the development of Dawei and Kawthaung as a motivation for its plan to add more flights to southern Myanmar.

Beachside development, however, has historically seen pushback from local communities and environmental groups seeking to protect Myanmar’s delicate costal ecosystems, especially mangrove forests and coral reefs. The Tanintharyi Region has already entered the environmental conversation as industrial activities, especially logging, have threatened community forests. Prospective investors will likely run into ramped-up regulations and social and environmental auditing as they seek to build more hotels and resorts on the southern coast.