Exchange rate needs to be stabilized for development of tourism industry

Reported by Phyu Nu Translated and Edited by Win Htut + MYA

For the development of tourism industry of Myanmar, exchange rate needs to be stable in the country, according to travel service entrepreneurs. The number of world tourist arrivals to Myanmar went down in the last two years. However, there has been an increase in the number of world tourists to Myanmar since the end of 2009, it was learnt. Travel service entrepreneurs were in a state of development in the tourism industry at the end of 2010.   Also in 2011, the tourism industry is making progress. However, there are some barriers in improving the tourism industry more than now. “The main barrier is that exchange rate is not stable in the country. For instance, in the time of US$ one dollar that was equivalent with K 1000, if car rental for taking a trip cost K 1 million, it would be convenient with US$ 800. Now, one US$ dollar is K 800. It is necessary to change US$ 1000. There is a 20 percent difference in the exchange rate,” said a travel service entrepreneur. There is approximately 50 percent difference in package tour price due to high costs in car rental, hotel rooms and meals, according to some tour agents. “There are changes in package tour prices for the upcoming season. It is necessary to raise the price rate. Everything in every place is high in price rates. Hotel rate is high and restaurant is also high. When the package tour rate is raised, a tourist said that price rate of everything in our country is higher than other countries. Therefore, he cancelled the package tour. He said only when the price rate is stable, he will come to our country”, said a travel service agent in Yangon. Package tour to Myanmar is usually sold at least six months in advance. It is difficult to fix the package tour prices that have been already sold. The tour company may suffer losses in the change of exchange rate. “It is not easy to raise package tour price. If so, there may be problem. If hotels ask for room charge at least six months in advance, it is not easy to demand the charge from other countries. Even now, bookings are dropping a little”, said a travel marketing manager.