After 52 days of blockades: The economic crisis hitting Bolivia’s workers

The protests, which lasted 52 days, were driven by the Central Obrera Boliviana (COB) and the Federation of Peasants of La Paz, who called for the resignation of President Rodrigo Paz, arguing that he had failed to respond to their demands since taking office nearly eight months ago. The prolonged road blockages have severely restricted mobility and supply chains, slowing economic activity across the country, particularly in urban centres such as La Paz.

In the tourism sector, the downturn has been immediate and severe. Edson Muraña, an Indigenous leader and tour guide from the Lipez community in Potosí—home to the well-known Salar de Uyuni—explained that “tourists stopped coming” from the very first week. Widespread cancellations disrupted travel plans and agency operations, triggering a ripple effect across the sector, especially for those whose income depends directly on visitor flows.

In La Paz, the tourism and hospitality sector reflects the scale of the crisis. According to Helga Cisneros, president of the Departmental Hotel Chamber, occupancy rates have dropped dramatically. The sector had already declined from around 70% occupancy in 2019 to approximately 35–38% in recent years. However, the situation worsened significantly during the blockades. At the beginning of June, hotel occupancy fell to as low as 4%, recovering only slightly to 7% in the following weeks, highlighting the near paralysis of tourism activity in the city.

The economic losses have been substantial. Cisneros reported that, at a national level, accumulated losses in the sector are estimated at around 2.7 billion bolivianos, equivalent to roughly 270 million US dollars at the current official exchange rate. While this figure reflects the broader national picture, La Paz—one of the country’s main tourism hubs—accounts for a significant share of these losses due to high cancellation rates and reduced visitor flows.

Cancellations have been particularly severe in recent months. “June has seen cancellations of around 95%,” Cisneros noted, adding that May had already been marked by widespread disruptions. This sharp decline in demand has left many businesses without revenue during what would typically be a key recovery period.

Beyond financial losses, the employment situation has become increasingly fragile. The hospitality sector, which employs large numbers of women and young people, has already been forced to send workers on leave due to the lack of activity. With high operating costs, including wages, utilities and taxes, many businesses are now considering layoffs as a necessary measure to remain viable.

At the same time, informal workers in local markets report unstable conditions affecting their daily trade. Vendors describe irregular supply and fluctuating prices, noting that availability can vary significantly from one day to the next. Despite these challenges, many emphasise that their priority is simply to continue working, as their livelihoods depend on daily income.

At a national level, business sectors estimate that the overall economic damage could reach as much as 3 billion US dollars, equivalent to approximately 5.5% of the country’s Gross Domestic Product (GDP). The Confederation of Private Business Owners of Bolivia has called on the government to implement an emergency support plan for struggling companies, as well as to approve legislation aimed at preventing road blockades.

Although the blockades have gradually been lifted, the government also declared a state of emergency, ordering military and police forces to clear the roads. After nearly two months of disruption, Bolivia now faces the challenge of stabilising its economy, as workers across sectors continue to call for conditions that allow them to resume their activities and recover their livelihoods.