Yangon (formerly known as Rangoon) is the former capital and by far the largest city in Burma/Myanmar. Since the semi-official tourism boycott was lifted in 2012 after the country started with democratic reforms, things have been changing rapidly. As of now the tourism infrastructure is weak compared to its Southeast Asian neighbors, but that’s part of the charm to some of the travelers who’ve already made a visit. Our friends at Travelfish have the best Burma travel guide to go along with their other expert SE Asia content.
Things for tourists are generally cheap, even with prices rising almost on a monthly basis. Food and drinks are some of the cheapest available in the region as long as you eat street food like nearly all the locals. Inevitably, more tourist-oriented restaurants will appear and prices in those are always much more than the outdoor cuisine.
The tricky part at this point is the hotel scene, as it barely existed only a few years ago. There are very few cheap hotels in Yangon, and those in the lower price ranges tend to be poor quality. You’ll likely have to pay much more than you’d expect for a “Western standard” room here. As of now there are no proper hostels in Yangon, although some cheap hotels do have a few dorm beds.
You should also be prepared for “foreigner prices” at attractions and elsewhere that are much higher than locals pay. This is fairly common in this region and the bottom-line price is still low by international standards, but it really bothers some people anyway. Change money at the airport for the best rates, and stock up on pristine US banknotes before you go if you can.