WHILE STILL hard pressed to compete with their Caribbean counterparts in terms of pricing, the island's duty-free merchants say they are not about to "roll over and die" but are bent on continuing to play their part in "making the tourism sector the best the region has to offer."
They note that what they have to pay in taxes puts them at a "competitive disadvantage" with other destinations, some even noting that they are currently hard pressed to stay in business.
"What we have to pay in terms of taxes puts us at a competitive disadvantage with the other islands," notes Kumar Sujanani, the owner of the Gem Palace chain of duty-free stores in Ocho Rios, St. Ann. "When we have our competitors paying next to nothing in taxes, it's not an easy thing to compete with them in prices... it's a lot easier for them to be more flexible. Still, many of us continue to soldier on... doing our best to ensure that the country maintains a strong presence in the tourism market."
The president of the association, Kumar Samtani agreed. He explained that merchants have invested heavily in both goods and services, sometimes barely seeing much by way of returns. "A lot of merchants are under pressure because of the realities of the situation," he said. "We however have been known for our quality products and this, regardless of what we are facing, will be our goal for the, remainder of 2004 and beyond
SHOPPING CENTRES
Inbond merchants currently have to pay an eight per cent duty on their imported products. In addition, they also have to pay a two per cent cess, a combined 10 per cent in tariffs, making their total one of the highest in the region. They are also handicapped by the fact that the cruise ships visiting Jamaica are spending a lot more time at the attractions, giving passengers very little time to shop at the shopping centres.
"It's a very rough road," explained Sanju Chatani, the owner of the Taj Mahal Plaza in Ocho Rios. "A lot of people are of the view that duty free merchants are making a lot of money and that everything is simply dandy... this is so far from the truth. Merchants have to do a lot by way of investment... have to take a lot of risk and make a lot of sacrifices. They then have to compete with the other islands for survival, something which oftentimes is easier said than done."
Ravi Daswani, the owner of the Royal Shop chain of duty-free stores, noted that the fact that Jamaica is consistently voted as the number one destination for duty-free shopping is a testament to the perseverance of merchants, noting that "this is an achievement we are extremely proud of." He adds that the duty-free sector has grown more competitive throughout the region, saying "We no longer can afford to take anything for granted... our competitors certainly will not allow us to do so."
'BED OF ROSES'
Indru Dadlani, owner of the Casa de Ora chain of duty free stores, noted that the perception that the duty-free business was 'a bed of roses' was far from the truth, adding that "we certainly have our work cut out for us...as the saying goes, not everything that glitters is gold... this is truly a high risk business...not one for the faint of heart."
