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jambo
3300 Posts |
 Posted - 15 Apr 2008 : 10:17:27
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I have just finished speaking to a friend who is staying in Gambia and he told me a few facts about how the rate of exchange is
obsevation number one
affecting the local people he is based in Kotu, those that are in the tourism industry are struggling, because they depend on tips from visitors to make up their "wages", but as the rate of exchange is low for tourists, not many are spending, they are not eating out as much, they are not taking trips, at this stage it is being felt in small measure but the bigger picture is worrying.
Observation number two, a few expats who have settled in Gambia and lived off the UK pension/savings are considering returning to UK as the Gambia is not giving them good value for money, i had not thought about that but if they are depending on pensions from UK against dalasis to have a nice retirement things are changing there for them.
Observation number three, people who bought plots of land intending to do things with it, build houses, set up business, are re-thinking their finances.
I have taken on board the things he has said and had to re-think my trip as well. If we look at some of the postings some of us have projects that we sponsor and have to re structure our budgets accordingly.
Is there anyone in Gambian who can tell me if the local are starting to feel the pinch right now or will it hit later on.
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toubab1020
12312 Posts |
Posted - 15 Apr 2008 : 12:13:24
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Jambo
Thanks for a thought provoking posting,I think that it would be very interesting to find out who fixes the exchange rate as it is obviously not a rate that has been fixed by any rule of financial comparrison with other currencies,I think that those who advise the president (for it is H.E. who has the final say) these advisors have done a good job in stabalising the Dalasi,you may remember that in times gone by there was a real market in exchanging different monies,so you picked the best value.This all changed when the Central Bank made it illegal for people to change money,you could do it if you had deposited,I think 1 million Dallasi for a licence to the government,that was the first step in giving government control of the money market,from there on slowly the rate was under their hand they were able to set it at what they liked, be it realistic or not.THe government has to think very carefully about its next steps,tourism and outside investment are vital to Gambia and if visitors think they are not getting good value for money they will not come or invest,as you have observed.It is a fact that if you want to buy goods or services in the world outside Gambia then that has to be bought in "hard" currencies and NOT Dalasi. |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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jambo
3300 Posts |
Posted - 15 Apr 2008 : 12:40:03
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thanks for your reply, it is good that people are stopping and thinking about the future, too often people just carry on and then wonder what happened when the storm hit.
I am wondering if the locals are being affected, less money in circulation/less tourists/wages not rising to go with money needed for daily living.
1000 dls for school fees will not change. But if fuel goes up, bus fares/taxis fare will increase, imports taxes/costs etc go up. |
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leokat
United Kingdom
123 Posts |
Posted - 15 Apr 2008 : 13:25:46
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Jambo,
Surely the poor Gambian exchange rate is only part of the problem.
The British (and other European) tourists that many Gambians depend on for the large part of their income are also experiencing huge price increases at home. House prices in England have risen vastly over the past few years, leading to higher mortgages that have not been held in check by repeated lowering of bank interest rates. I do not think that even the recent slowing in house price rises (or even a drop in house prices) will help here as the type of tourist most likely to be a repeat visitor is already 'locked in' to a mortgage. Gas and electricity prices have also 'gone through the roof'. Food prices, likewise, have risen.
Additionally, the type of person most likely to become a return visitor to The Gambia and the type who would want to contribute to the local economy is going to be on a modest income. A quick scan of Bantaba shows that its numbers are made up, in large part, by people who work in vocational occupations that are traditionally not well paid. These people have quickly discovered that their disposable income has been vastly and rapidly reduced.
It seems to me that the poor exchange rate and rising costs at home compound each other. I have it on good authority that the first reductions in the dalasi & £/$ exchange rate were prompted by fears brought about by the sub prime mortgage crisis in the US and the failure of the Northern Rock bank in the UK. These events led to scares on the stock market. Whilst a wholesale economic depression seems to have been averted (for now) in the US and Europe there has been lasting uncertainty. This uncertainty in turn feeds into the perception that the dollar, the pound and (to a certain extent) the euro are not the solid and dependable currencies they once appeared to be; which in turn perpetrates a poor exchange rate.
Add to the above the rise in the price of staple foods like rice, wheat, and maize due to mindblowingly illthoughtout bio-fuel initiatives leading to food price rises which disproportionately affect consumers in poor countries like The Gambia. This seems to be a perfect recipe for financial disaster for those dependent on tourists for their income.
When I was in The Gambia in February/March I definitely noticed a change in the local traders. The quiet desperation brought on by a less profitable tourist season, as I have already mentioned elsewhere, led some traders demand that I buy whereas previously it had been more of a hope. I also noticed a bewilderment and resentment in some of the guides and bumsters because they did not understand the economic situation in the UK they could not understand why the toubabs are less generous than they used to be.
If the current situation is likely to be a lasting one maybe The Gambia needs to look away from The West. Perhaps tourism isn’t going to be the ‘golden goose’ providing endless job opportunities and associated wealth. It might even consider aligning it’s currency with the Yen or the Rupee.
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jambo
3300 Posts |
Posted - 15 Apr 2008 : 15:29:56
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leokat, you are right Gambia should look for other revenus, but maybe we in the west can cope better because there is a fallback system etc, but in Gambia no. I would be happy if the relevant government bodies paid decent wages for civil servants so that they were not feeling the pinch.
I had planned a holiday because it will be one year since I was last there, but I am so penny pinching now it could spoil the trip, so I either go in May and spend what I have, or see if it picks up and go in October for two weeks.
I and others have projects to support and are looking closely a the situation but from here there is only so much you can do. As for the guides and bumsters, they are not on my list of essentials. |
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Prince
507 Posts |
Posted - 15 Apr 2008 : 20:58:48
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The dalasi appreciated at a wrong time, b'coz it could be fatal for the economy in the long-run.
Even without the foreign exchange rate fixation, the raising prices of energy, housing and an overall economic slowdown in the Western world puts Gambia at a disadvantage.
The strengthening dalasi, would mean less remittances from Gambians abroad and fewer tourists, as well as exporting less. These are the country's main source of foreign currency.
Brace urself, because the future doesn't look rosy from where i stand. |
"When injustice becomes law, rebellion becomes duty." |
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gambiabev
United Kingdom
3091 Posts |
Posted - 15 Apr 2008 : 21:32:19
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It seems to me the UK is talking itself into a serious depression. Thats not good news for me personally as I am trying to sell my house, but it has much wider implications too.
Every morning on BBC news there is more doom and gloom.
In an ideal world people should be self reliant and be able to endure the peaks and troughs....but most people arent that fortunate. Most people in UK are feeling the pinch....prices all increasing and no increase in wages.... It is hard, but at least we wont starve!
The impact in Gambia will be :
1. Less visitors
2. Visitors that do come will have less money
3. Compassion fatigue. If you are struggling yourself you are less likely to be sympathetic to others.
Gambia needs to look to other markets....USA....Northern Europe etc....
I am not going to Gambia this year. I cant afford to. It isnt just the holiday cost, but the cost of what is expceted from me the minute I arrive.
I plan to go to Spain or Italy Or Greece or USA for a week in the sun.
Then in 2009 I will return to Gambia refreshed. |
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sab
United Kingdom
912 Posts |
Posted - 15 Apr 2008 : 22:31:20
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U sure about going elsewhere - U are Gambian now!
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The world would be a poorer place if it was peopled by children whose parents risked nothing in the cause of social justice, for fear of personal loss. (Joe Slovo - African revolutionary) |
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leokat
United Kingdom
123 Posts |
Posted - 16 Apr 2008 : 00:23:07
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Originally posted by jambo
...but maybe we in the west can cope better because there is a fallback system etc, but in Gambia no...
Yes Jambo of course we in the West are in a far stronger position to be able to cope with a financial squeeze. However, it seems to me that, ironically, it is the various welfare systems and guaranteed minimum wages etc that those of us who live in the West take as given; which may be the very reason the tourists do not prioritise the giving of charity.
There is a great British saying 'charity begins at home.' For those of us fortunate enough to be born and live in a country where the basics (and often more) of a decent meaningful life are taken as given this attitude poses few problems. But it does seem to me to highlight a major difference between British (particularly those who do not practice a religion) and Muslim attitudes to charity. For the majority of British people charity is seen as something of 'an extra' which one does to make oneself feel good if one is un a position to be able to do so. For Muslims, on the other hand, charity is a duty to be meted out to anyone in perceived need and not an optional extra.
quote:
I would be happy if the relevant government bodies paid decent wages for civil servants so that they were not feeling the pinch.
Me too Jambo - I'm a dyed in the wool socialist. But hey we have to live in the real world. The fact is that There are no decent wages for the majority, not just civil servants.
quote:
I and others have projects to support and are looking closely a the situation but from here there is only so much you can do. [/quote]
Yes myself and my daughter too. We have had to think very carefully about those projects we feel able to take on. My daughter has decided she needs to defer starting to pay for the schooling of her friend's son for a year. I am seriously considering whether the small amount of money I pay to one body might be better spent elsewhere since I do not have the money to contribute to both.
It is not good to be in the position of 'playing God.'
Personally I would never consider any whole group of people (the bumsters and guides) as automatically being any less deserving than another.
To each accoring to his/her need.from each according to his/her ability.
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Edited by - leokat on 16 Apr 2008 00:28:59 |
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toubab1020
12312 Posts |
Posted - 16 Apr 2008 : 12:31:52
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quote:
Originally posted by Prince
The dalasi appreciated at a wrong time, b'coz it could be fatal for the economy in the long-run.
Even without the foreign exchange rate fixation, the raising prices of energy, housing and an overall economic slowdown in the Western world puts Gambia at a disadvantage.
The strengthening dalasi, would mean less remittances from Gambians abroad and fewer tourists, as well as exporting less. These are the country's main source of foreign currency.
Brace urself, because the future doesn't look rosy from where i stand.
Very nicely summed up,extreme problems coming for Gambia,a country that releies heavily on tourism and remitances from others outside the country.
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 16 Apr 2008 12:34:45 |
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Serekundajock
United Kingdom
60 Posts |
Posted - 19 Apr 2008 : 22:56:19
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| I have to agree with gambiabev the UK is talking itself into a depression. In previous hard years there was not so much doom and gloom talk. They should keep there mouths shut. I was in Gambia in January and did notice that things were more expensive, also I tried to explain to the locals that I could not spend as much as previous years as money was tight. I did not get anywhere because they did not believe me. I gave less tips hired a car and did my own trips believe it or not it was cheaper to do it that way. But as previously said a great many tourists have been before like myself and are able to do things independently. The situation will improve, but will take time, the monetary market is very dynamic and dominated by the USA. The Asian countries can rid the world of this credit crunch according to the financial experts but why should they? |
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gambiabev
United Kingdom
3091 Posts |
Posted - 19 Apr 2008 : 23:07:39
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Sab, I feel 'half Gambian'! Thanks for reminding me.
I need a break, financially and emotionally....but I will be back next year.
I keep in touch via my guide in Pirang and bantaba. Also have a friend or 2 that go fairly regularly.
Gambia is in my blood..I think about it every day.  |
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jambo
3300 Posts |
Posted - 21 Apr 2008 : 13:14:37
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I am with bev on this, i am planning a visit in may this year, and i already know that i cannot help anyone, but I will not loose sleep because I know like many bantaba members we have helped in the past and when the GOOD TIMES return I will help again.
i will be strong and tell the families that I know that I cannot help financially.
"from Bev
The impact in Gambia will be :
1. Less visitors
2. Visitors that do come will have less money
3. Compassion fatigue. If you are struggling yourself you are less likely to be sympathetic to others.
Gambia needs to look to other markets....USA....Northern Europe etc....
BUT WE HAVE TO LOOK ON THE BRIGHT SIDE AT LEAST WE ARE PLANNING ON GOING, that will at least keep the airport/hotels in jobs.
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toubab1020
12312 Posts |
Posted - 21 Apr 2008 : 16:09:38
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quote:
Originally posted by jambo
BUT WE HAVE TO LOOK ON THE BRIGHT SIDE AT LEAST WE ARE PLANNING ON GOING, that will at least keep the airport/hotels in jobs.
Ah... yes......... but take care of your mobile and camera! |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Sister Omega
United Kingdom
2085 Posts |
Posted - 30 May 2008 : 03:55:34
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Greetings Everyone,
Come on Guys. Let's not believe our own hype. Gambians are resilient. The Global Economy is changing recession is looming in Britain houses prices are declining. Bush and Blairs' policies have backfired, petrol prices have increased and now the environment has become synominous with tax increases. Yet still Gambians will survive. It is just a start of a new cycle some Gambians moved away from the land to get easy money from Tourists. When Tourist and if tourism dries up they will have to return to the land.
Anyway Jambo I digress go on your holiday do what you can. After all wherever one lives there are ups and downs. Who is expecting you to be their Saviour? Just think about it for a second that is a great deal of responsibility for you to place on your shoulders. When the onus is for us all to be 100% responsible for ourselves as Adults and yet we still have not got total control of the outcome. That we leave to the unknown.
Go have another look at Gambia through different lenses and this time you will probably adopt another approach and come up with some collective solutions after all it is better to empower people than encourage dependency whether consciously or unconsciously.
have you booked your ticket yet?
Peace
Sister Omega |
Peace
Sister Omega |
Edited by - Sister Omega on 30 May 2008 03:58:49 |
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gambiabev
United Kingdom
3091 Posts |
Posted - 30 May 2008 : 08:26:18
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As one individual the burden of the expectations from some Gambians is hard and it is also hard to see the impact of my lack of help on the families. In one family it is very clear: a mother and daughter have been separated, daughter sent to live with Grandma so mum can work more hours. I'm sad about that. But I have my own problems.
I have been trying to sell my house for ages now. I need to sell it and downsize. I cant afford the bills.
This year my holidays are going to be a short city break to Prague with my mum and a trip to Edinburgh to see my daughter. I'm cutting back and I am not alone. I am hoping to go to Gambia in 2009 but that will only be possible if I sell my house. |
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