Chiang Mai – An already struggling Burmese tourism industry is now facing additional hardship on the heels of the global economy's downward spiral sparked by the United States financial crisis.
Tourism to Burma had already fallen sharply since the 2007 Saffron Revolution and in the wake of Cyclone Nargis in May, but the current global financial crisis has brought the industry to a new low.
"Fist September unrest, then Cyclone Nargis and now this current global financial turmoil has had much impact on our tourism industry," a director of a Rangoon-based tour agency which mainly relies on the heretofore lucrative European market told Mizzima.
The lion's share of the Burmese tourism market, about 70 percent, is taken by the United States and European markets. The remaining 30 percent is taken by China, Japan and other Asian countries.
The tourism industry is trying to survive these bad times by employing sales promotions while slashing fares for tour guides, cars, air travel, hotels and meals, but business remains well below what would normally be expected.
Collapsing sub-prime mortgages in the United States last year, followed by a domino effect in other economic sectors, has impacted growth around the world.
"The European market has fallen sharply. We will be very lucky if we can get 50 percent of our usual market. Though the situation is slightly improved thanks to aggressive promotion techniques, it cannot catch up to the usual market," added the tour operator.
Meanwhile, the prices of tour bus rentals, hotels and meals are rising, so that the profit margin of tour operators has fallen by 20 to 30 percent, he continued.
Though income has drastically dropped, tour agencies are struggling to survive this stretch of stormy economic weather.
"Nowadays our selling of tour packages is so much more aggressive. We are all trying to get customers by drastically slashing prices as we want to keep our businesses running," a sales manager at another tour agency added.
Usually fully booked during the peak season of mid-September, the current situation is nowhere near what would be expected, he said.
Similarly, tour guides are also facing additional hardship these days.
"The tour operators have to share the limited assignments among our regular tour guides. We cannot give jobs to freelance ones," the manager added.
Previously tour guides were fully booked with assignments in the peak season, but some have not yet been given even a single assignment during what was to be this year's peak season.
Tour guide Kyaw Kyaw from Rangoon told Mizzima, "We get only one trip a month, and only a short trip. And our tour guide fees were also slashed to well below previous standards. Some guides have been unemployed for a long time, since the September unrest of last year".
