The United States, the European Union and Australia slapped tougher sanctions on Myanmar’s military regime in the wake of the bloody suppression of pro-democracy protests in September.

A UN investigator found that at least 31 people were killed when soldiers opened fire on the peaceful protests, which were led by Buddhist monks in Yangon and other cities around Myanmar, formerly known as Burma.

The country has been under a patchwork of sanctions for years, but the latest measures have blocked access to US financial institutions and made it more difficult to export Myanmar’s highly desired teak and precious stones.

The US sanctions have targeted specific companies and business leaders, noteably the flamboyant tycoon Tay Za, who is close to the top military leadership.

Tay Za has bitterly complained that the sanctions have crippled his Air Bagan airline, and warned that he would be forced to pass along his own economic pain to his employees.

Other business leaders have echoed that sentiment. Some say that they are struggling to stay in business only to support their employees, and that the current situation could soon become unsustainable.

“These sanctions pose problems for us. If the government suffers, we, businessmen have to suffer. If we suffer, the workers have to suffer,” said one top business leader in Yangon, speaking on condition of anonymity.

The original protests were sparked by the economic hardships facing Myanmar’s impoverished population, after an overnight hike in fuel prices on August 15 left many unable to afford even a bus ride to work.

The Yangon business leader said that he and other factory owners quickly negotiated deals with their workers, who had threatened their own protests over the fuel prices.

“The country’s economic development depends on the political situation. We cannot say yet what could happen next year. Right now we are running our business at a loss, just to keep our workers employed,” he said.

Myanmar’s fledgling tourism industry has also taken a blow, as the country saw an almost total drop-off in foreign arrivals after the crackdown.

Sean Turnell, an expert on Myanmar’s economy at Australia’s Macquarie University, said the tourism business in the Southeast Asian nation has “completely collapsed” due to a plunge in demand after the September violence.

“The events of August are going to come back because the economy is getting worse, and the level of public anger in the country is still very high,” said Turnell. “In Burma, big unrest always comes when people feel they have nothing much to lose,” Turnell said.

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