Due to a surge in tourists, there are over 180 hotels in Southern Shan State. In the near future, it is expected that more than 10 million tourists will visit Shan State- the tourism sector is a high potential sector for investment . Inle Lake in Shan State receives the maximum number of visitors-there are opportunities to invest in the reduction of the noise emitted by boat engines used for transportation in the lake. The wall painting at Padarlin Cave in Ywa Ngan Township, which was a habitat for stone age people , is a source of interest for foreign visitors. However, the area is difficult to reach and investment in a sky cable car from the Eastern mountain ranges of Taunggyi would be an opportunity. Direct flights from China (Heho-Lin Chan) and Thailand (Heho- Chiang Mai) should be arranged to bring more visitors from neighboring countries. Trekking tours in Kalaw are also a potential opportunity in the tourism sector. There are 34 different ethnicities in Shan State; the traditions, lifestyles and cultures are interesting for tourists to explore along with the natural views of caves, rivers and waterfalls. Community- based tourism is also being introduced as an attraction in the Pa-O and Danu area of Southern Shan State. Adventure sports such as rafting, trips on speed boats and mountain climbing can be developed in the Than Lwin river, Nam Teng, Nam Pan, Mekong and Dote Hta Waddy river basin areas. From a total of 55 townships in Shan State, only 13 have licensed hotels and guest houses; there is opportunity to invest in hotels and guest houses in the remaining 42 townships such as Lashio, Pindaya and Keng Tung.