BURMA: WATER FESTIVAL PARTICIPATION AFFECTED BY FINANCIAL

UNCLAS SECTION 01 OF 02 RANGOON 000228 SENSITIVE SIPDIS STATE FOR EAP/MLS, INR/EAP, EEB/IFD/ODF PACOM FOR FPA TREASURY FOR OASIA:SCHUN E.O. 12958:N/A TAGS: ECON EFIN PREL BM SUBJECT: BURMA: WATER FESTIVAL PARTICIPATION AFFECTED BY FINANCIAL CRISIS RANGOON 00000228 001.2 OF 002 Summary -------------- ¶1. (SBU) Water Festival, the most-anticipated holiday in Burma, usually boosts Burma's economy, providing jobs for day laborers and vendors while generating profits for those who organize festivities. However, this year's Water Festival was not as profitable as in the past: the Government sold fewer wooden stage construction permits, fewer companies sponsored events, and fewer Burmese participated in the festivities. Economic contacts and event organizers blame the world financial crisis for lower participation. Nevertheless, while stage operators' profits may have declined, construction workers and food hawkers still financially benefited during this Water Festival period. End Summary. Celebrating Water Festival -------------- ¶2. (U) Burmese Water Festival or Thingyan, the country's most famous holiday, is a time when the Burmese can enjoy themselves with little threat of government interference. During April 12-16, stores, offices, and restaurants were closed, enabling the Burmese to engage in the festivities. While some Burmese went on pilgrimages to their favorite pagodas, most participated in the traditional water-throwing events. In Burma, throwing water on someone cleanses the soul before Buddhist New Year. The Burmese take Water Festival to new heights, constructing wooden stalls known as pandals with water cannons and spray fire hoses so that participants can hose down crowds who line the streets. ¶3. (SBU) Participating in Thingyan is expensive and the Burmese save money all year for this event. Several contacts told us that they took on extra work or borrowed money in the past to participate in the festivities. However, due to limited access to credit, several participants told us they could not afford to buy pandal tickets this year. Pandal operators confirmed that ticket sales were down compared to last year. Preparing for Water Festival -------------- ¶4. (SBU) This year, the Yangon City Development Committee (YCDC) issued approximately 100 pandal construction licenses, compared to 150 licenses granted in 2008, according to pandal organizer and businessman U Moe Myint. License fees range between 60,000-1 
million kyat (USD 60-1,000),depending on the size of the pandal and the location. Several pandal operators told us that YCDC officials granted licenses to those connected to the government, including Than Shwe's grandson, who later resold them at a profit. Pandals cost up to 15 million kyat (USD 15,000) to construct, including formal and informal license costs, raw materials, and labor fees. Construction usually takes ten days, and organizers hire day laborers from the poorer areas of Rangoon. One pandal organizer estimated that more than 3,000 day laborers found work immediately before Water Festival, approximately 1,000 workers less than last year. Salaries remained the same: between 2,500 and 3,500 (USD 2.50-3.50) kyat a day and laborers worked for up to 18 hours a day. Earning Less than Last Year -------------- ¶5. (SBU) According to YCDC Thingyan organizer Daw Yin Yin Aung, pandal organizers in the past have earned profit, despite high production costs. Prominent local businesses, such as such as Myanmar Beer, Air Bagan, or local hotels, often sponsor large pandals, allowing the operator to recoup some of the costs. RANGOON 00000228 002.2 OF 002 Sponsorship also helps attract bands and entertainers to the pandal, which in turn increases the number of ticket sales. While the average cost of sponsorship in 2009 was two million kyat (USD 2,000),some of the larger sponsors from 2008, including Alpine Water, opted to forgo sponsorship this year due to financial constraints, Daw Yin Yin Aung told us. Consequently, pandal operators requested fewer permits this year, she surmised. ¶6. (SBU) Pandal operators earn money by selling tickets to stand on the stage and spray revelers with water. In 2009, the cost of a pandal ticket was between 10,000 and 80,000 kyat (USD 10-80) a day, slightly higher than last year. Some pandals offered discount tickets for multiple days and some businessmen, notably regime crony Tay Za, paid for tickets for staff of their companies. In 2009, the largest pandals sold more than 300 tickets for each day, earning more than 120 million kyat (USD 120,000) for five days, U Moe Myint told us. Smaller pandals made substantially less, although he noted that profitability varied by location and size of the pandal. ¶7. (SBU) Local car dealers and car owners also profited from Water Festival. Many Burmese who could not afford pandal tickets rode around the city in rented cars. In the weeks before Water Festival, we observed local car owners repairing their vehicles, while others were advertising jeep rentals at approximately 120,000 kyat (USD 120) a day, approximately 20 percent higher than last year. Many Burmese told us that due to high rental prices, they opted to travel around Rangoon in large trucks, which charged 3,000 kyat a day and held up to 30 people. ¶8. (SBU) Vendors were out in full force, selling food and drinks before and during Water Festival. Daw Yin Yin Aung explained that YCDC charged vendors 10,000 kyat (USD 10) a day to set up temporary stands during Water Festival. Several hawkers told us they earned up to 25,000 kyat (USD 25) a day selling food and drinks to construction crews and revelers before Water Festival began. Vendors who sold food prior to and during Water Festival likely earned more than 500,000 kyat (USD 500) for the period, Daw Yin Yin Aung surmised. Comment -------------- ¶9. (SBU) While there are no official figures on the economics of Water Festival, several of our contacts speculated that this year's festivities were not as profitable as those of previous years. YCDC earned less than last year, due to fewer pandal permit sales. Many Burmese, affected by slow business activity and lack of access to credit, had less disposable income, resulting in an observed drop in participation. U Moe Myint stated that the financial crisis turned the 2009 Water Festival into a party "for the wealthy" rather than for the general public. Indeed, while there were many people out in the streets, fewer people purchased expensive pandal tickets. Day laborers and food stall operators, who generally earn 2,000 kyat (USD 2) day during the rest of the year, were once again the real winners of the Thingyan "economic stimulus" effect. DINGER