Log In

Reset Password

Retailers in bid to make Island a mecca for duty-free shopping

A group of 52 Island retailers claim the move would make Bermuda a prime shopping destination for tourists.They also claim it would slash local prices and lead to increases in staff wages.

it was revealed yesterday.

A group of 52 Island retailers claim the move would make Bermuda a prime shopping destination for tourists.

They also claim it would slash local prices and lead to increases in staff wages.

Government is to be asked to consider radical new plans which would abolish taxes on clothes, jewellery, toys and sports gear -- which were worth $7.63 million in duties last year.

The proposal has been put together by a newly formed group of 52 local retailers who have been battling to save their businesses on the island.

In the last six months they have undertaken market research on what holidaymakers want and have been in discussion with the Government and the Department of Tourism. Now they have come up with a concrete plan that they say will save shopping in Bermuda and be a boost to the economy.

Ian Smith, general manager of the Front Street jeweller Astwood Dickinson and chairman of the Chamber of Commerce Committee behind the proposals said: "Duty free is a magic spin for Bermuda. It would give tourism a shot in the arm.'' Retailers on the Island have been suffering from dwindling numbers of tourists, the advent of e-commerce, and the growing trend of going abroad to shop.

Six months ago, 52 shop owners and managers from the Chamber of Commerce clubbed together to see if they could find a way to stop the slide. And they have come up with what they see as the solution to a problem which has been eating away at their profits for years.

"We are going to submit proposals to the Minister of Finance for his consideration asking for the removal of import duties on eight categories of goods including clothing, jewellery, toys and sports goods,'' said Mr. Smith.

The businesses set up a marketing division and did research to find out how to improve business. The Chamber working group liaised with the Government and met with Tourism Minister David Allen to look at ways of making an integrated push for business. Now they are going to hand the proposal in to the Minister of Finance Eugene Cox for his consideration.

David Hamshere, president of the Tess group that runs the English Sports Shop and Aston and Gunn and member of the executive committee of the special retailers committee said the support of the Minister was crucial.

Retailers in duty-free shopping bid "We can only do so much to help ourselves. For things like this we need the support of the minister.'' He added: "The taxes are killing us. The differences in taxes between cotton (2.5 percent) and non-cotton goods (22.25 percent) is a throw-back to colonial times when cotton was given a preferential tariff in the commonwealth.'' According to the committee members most shops on the Island are struggling under the weight of taxes and shipping costs and say that they make very little money and fear for their futures. With the abolition of taxes on many items, the managers say they could make their prices lower than those in the States, which would encourage tourists to the Island.

The group are aware there will an unwillingness on the part of the Government to give up on $7.63 million of taxes.

George Grundmuller, president and chief executive officer of the Phoenix Stores Ltd., and another member of the committee said that they have come up with a solution they hope the Government will agree to.

"We have anticipated this question. We have a solution, but we cannot go into that right now.'' Stuart Joblin, owner of Making Waves and committee member said: "We have to offer value.

"And prices will fall, which will mean better value for people living here and tourists visiting. It will also mean our profit margins will increase which will lead to higher wages. And we will get more visitors coming to shop.

It is a win-win situation.'' The proposals have been published in the winter newsletter of the Visitor Retail Division of the Chamber of Commerce. The group meet with the Finance Minister in meetings in January and February to discuss them.