Unfortunately, we cannot escape raising prices. In our destinations, energy prices have risen considerably. Transportation and cat skiing in particular have become significantly more expensive. In addition, financial institutions have imposed restrictions on international transactions.
In all the countries where we operate, prices rose between 10 and 20% last year. This price increase was already evident at the end of 2021. After covid restrictions ended, prices rose rapidly. In addition, the global energy crisis is also affecting this inflation.
In terms of financial constraints, we are bound by increased transaction costs and more supervision. In Kyrgyzstan, for example, banks retain 4% of all transactions from foreign currencies. We want to stay compliant with the (financial) regulations so that means more administration and more remittance to the banks.
Because we support guides and businesses in developing countries, we face increased risks. European banks are monitoring the transactions we make. While this is part of our role as a foundation, it takes up a lot of our time, energy and money. Much of our financial reports goes into accounting for expenses. We therefore hope for understanding on your part.
