Fears of a sales slump following a waiver of the 72-hour minimum time one had to be abroad to claim a $100 duty-free allowance have proved unfounded.

Retailers believed buying by residents would drop sharply after Government announced the waiver in February.

Four months later, the Island has seen an increase in both the number of Bermudians travelling abroad and the amount of money Bermudians spend abroad. In April alone, Bermudian travellers declared $4.65 million of overseas purchases and the number of returning residents increased by 33 percent.

However, local merchants have not reported a decrease in sales.

The Gibbons Company?s retail manager and buyer Paula Clark has not seen a drop in sales at Gibbons Company. She said: ?It is absolutely the reverse. (Customers) see the same merchandise in our store that they see overseas at a competitive price, plus they don?t have to pay sales tax or customs duty.?

Managing director of Tess Ltd., parent company to the English Sports among others, David Hamshere said: ?I personally have no evidence that the withdrawal of the 72-hour minimum absence is making any major impact for people who away for a day or two days. It does allow them to take advantage of the $100 allowance?, but it is too insignificant to affect sales overall.

Ms Clark also said about waiving the restriction: ?People probably feel it?s easier for them to bring things in. It certainly doesn?t encourage the local customer to spend more here. It is more of an invitation to go abroad (to make purchases).?