WHILE ACKNOWLEDGING the difficulties in competing with their Caribbean counterparts in terms of pricing, the island's duty-free merchants say they aren't about to "wilt under pressure" but will do everything to make the tourism sector the best in the region.
"What we have to pay in terms of taxes puts us at a competitive disadvantage with the other islands," notes Kumar Samtani, president of the Duty-free Merchants' Association of Jamaica.
"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."
Jack Thakurani, owner of the Colors Duty-free store and president of the Ocho Rios Indian Merchants' Association, agreed. He explained that merchants have invested heavily in both goods and services, sometimes barely seeing much by way of returns.
QUALITY PRODUCTS
"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
Inbond merchants currently have to pay an eight per cent duty on their imported products in addition to a two per cent cess. 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 Dirgesh Kotai, owner of Gold Mines Duty Free store. "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."
