Monday, 6 April 2015

You know your economy is in trouble when ....

hotels start asking guests to bring their own toilet paper and soap.

Not exactly a common practise in tourism unless you are holidaying in Venezuela.

Manuel Rueda at Fusion is reporting that
Venezuela’s product shortages have become so severe that some hotels in that country are asking guests to bring their own toilet paper and soap, a local tourism industry spokesman said on Wednesday.


“It’s an extreme situation,” says Xinia Camacho, owner of a 20-room boutique hotel in the foothills of the Sierra Nevada national park. “For over a year we haven’t had toilet paper, soap, any kind of milk, coffee or sugar. So we have to tell our guests to come prepared.”
But if you have price controls and a very weak currency then you get smuggling and a black market.
“Five hotels have told me they are going through this situation, where they have to ask guests to bring their own toilet paper,” Montilla told Fusion. “We’re near the border with Colombia, just two and a half hours away, and lots of [Venezuelan] goods are taken there, because they sell for more money in Colombia.”

Montilla says bigger hotels can circumvent product shortages by buying toilet paper and other basic supplies from black market smugglers who charge up to 6-times the regular price.
And the government response?
Recently, Venezuelan officials have been stopping people from transporting essential goods across the country in an effort to stem the flow of contraband. So now Camacho’s guests could potentially have their toilet paper confiscated before they even make it to the hotel.
Can't help thinking removing price controls and letting the price mechanism work would fit the problem most quickly.

1 comment:

Mark Hubbard said...

Ain't socialism a joy.

And yet the West keeps lurching toward the state and politicians to solve their 'perceived' problems.