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Home >> Travel News >> Rising Kyat hurts tour operators

Rising Kyat hurts tour operators

The strengthening of the kyat against the US dollar is causing problems for tour operators in Myanmar who have already quoted wholesale contract rates to overseas agents.

Myanmar Times reported travel agents were predicting financial losses due to variations in the currency.
“The price of travel packages will have to increase,” said Yangon’s EPG Travel managing director, Ko Aung Naing.


“It is never helpful when local currency strengthens against the dollar because we lose and the only alternative is to go back to the wholesaler and quote again if it is possible.”
KMA Hotels Group, group general manager and country director, Frank Janmaat, said exchange rates were hurting the industry because quotes are always in US dollars.
“Contractual rates with foreign and local tour operators or travel agents are based on the US dollar,” Mr Janmaat said, adding that the tradition had been in place for decades.
Despite concerns, Mr Janmaat predicted that there would be no negative impact on tourist arrivals during the high season, which begins at the start of October.
“Most visitors travel to Myanmar on package tours and prices are fixed,” he said. “They will lose out on local spending as items will be more expensive.”
Entertainment, shopping, taxis and restaurant bills will all cost more. The rise in the value of the kyat is also impacting on airline costs.

(June 22, 2011 by TTRweekly Staff )