Two of Rangoon's biggest hotels have closed their doors in what business owners say is a drastic downturn in the tourist industry and the overall economy following the pro-democracy demonstrations.
Signs of a failed economy are everywhere, say business people. Teashops have fewer customers, day workers are relying on rice handouts from their employers and prostitutes are walking the streets in daylight— unembarrassed—trying to survive.
Business sources told The Irrawaddy on Wednesday that the Kandawgyi Hotel and the Hotel Nikko have closed their doors for lack of customers.
Many hotels in Rangoon are reportedly empty, and business has dried up at tourist agencies and airline offices.
A shop owner in Rangoon said on Tuesday that business is suffering, following the demonstrations and the government's increase in fuel prices on August 15, which raised the cost of public transportation and increased food prices.
“This situation really hit our pocket,” said the shop owner. “We keep going with our business because we do not want to close. Rice shop owners keep running their shops not because the economy is good but because people need rice. All pockets are empty.”
Most businesses made only a small profit before fuel prices were increased, said the shop owner, but since then, profits have gone to pay for increased fuel prices.
“There is inflation in Burma and the currency is losing more of its value,” he said.
After August 15, gasoline and diesel fuel prices more than doubled, while the cost of compressed gas, used to power buses, increased five-fold, driving up ticket prices for those who depend on public transportation.
In 1988, the unofficial exchange rate for 25 kyat was US $1; in the early 1990s, 100 kyat equaled $1; currently, 1,300 kyat equal $1 on the unofficial market.
People have even cut back on going to the ever-popular tea shops, the traditional place for friends to gather, said one Rangoon resident. Now, he said, people try to save money any way they can.
“If I go with my family to a tea shop and have food there, it will cost about 6,000 kyat," he said. "When my income was good, it was no problem for me. But now my income is not good, and I have to use this money for food.”
“Most people cannot eat meat because the price is skyrocketing," he said. "Meat prices increase about 200 kyat every week. Poor people now buy only vegetables because they are cheaper."
Workers who rely on temporary day work are sometimes given rice by their employers, he said, which helps the very poor survive. The poorest families buy food one day at a time, he said.
Even younger people with educations who have jobs with large companies are feeling the strain. "All jobs are insecure,” he said.
Rangoon sources said women who rely on prostitution to earn money can now be seen on Rangoon streets even in daylight.
“Women are at the 10-mile highway bus station, around RC-2 (Regional College 2) and on Waizayanter Road trying to find customers," he said.
"They are not embarrassed to be seen in the daytime. They are trying to survive too, and it's hard to find customers. People now only think about daily food.”
A taxi owner in Rangoon said before the rise in fuel prices he could save a little money each month, and he could pick and choose when to drive during the day. Now he drives all day searching for customers, and it's hard to pay the monthly rental fee for his taxi.
A Burmese economist who lives in Thailand said a UN survey found that the average Burmese citizen used 70 percent of their income for food.
“It is difficult to find a real money-making business in Burma at the moment," he said. "So many people are poorer. It's the sign of a failed economy.”
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A shoe repair vendor in |
Business sources told The Irrawaddy on Wednesday that the Kandawgyi Hotel and the Hotel Nikko have closed their doors for lack of customers.
Many hotels in Rangoon are reportedly empty, and business has dried up at tourist agencies and airline offices.
A shop owner in Rangoon said on Tuesday that business is suffering, following the demonstrations and the government's increase in fuel prices on August 15, which raised the cost of public transportation and increased food prices.
“This situation really hit our pocket,” said the shop owner. “We keep going with our business because we do not want to close. Rice shop owners keep running their shops not because the economy is good but because people need rice. All pockets are empty.”
Most businesses made only a small profit before fuel prices were increased, said the shop owner, but since then, profits have gone to pay for increased fuel prices.
“There is inflation in Burma and the currency is losing more of its value,” he said.
After August 15, gasoline and diesel fuel prices more than doubled, while the cost of compressed gas, used to power buses, increased five-fold, driving up ticket prices for those who depend on public transportation.
In 1988, the unofficial exchange rate for 25 kyat was US $1; in the early 1990s, 100 kyat equaled $1; currently, 1,300 kyat equal $1 on the unofficial market.
People have even cut back on going to the ever-popular tea shops, the traditional place for friends to gather, said one Rangoon resident. Now, he said, people try to save money any way they can.
“If I go with my family to a tea shop and have food there, it will cost about 6,000 kyat," he said. "When my income was good, it was no problem for me. But now my income is not good, and I have to use this money for food.”
“Most people cannot eat meat because the price is skyrocketing," he said. "Meat prices increase about 200 kyat every week. Poor people now buy only vegetables because they are cheaper."
Workers who rely on temporary day work are sometimes given rice by their employers, he said, which helps the very poor survive. The poorest families buy food one day at a time, he said.
Even younger people with educations who have jobs with large companies are feeling the strain. "All jobs are insecure,” he said.
Rangoon sources said women who rely on prostitution to earn money can now be seen on Rangoon streets even in daylight.
“Women are at the 10-mile highway bus station, around RC-2 (Regional College 2) and on Waizayanter Road trying to find customers," he said.
"They are not embarrassed to be seen in the daytime. They are trying to survive too, and it's hard to find customers. People now only think about daily food.”
A taxi owner in Rangoon said before the rise in fuel prices he could save a little money each month, and he could pick and choose when to drive during the day. Now he drives all day searching for customers, and it's hard to pay the monthly rental fee for his taxi.
A Burmese economist who lives in Thailand said a UN survey found that the average Burmese citizen used 70 percent of their income for food.
“It is difficult to find a real money-making business in Burma at the moment," he said. "So many people are poorer. It's the sign of a failed economy.”
