South Africa September 2006 |
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| Influx of cross-border shoppers, (Daily Dispatch, 2006-09-06):-The growing boom in cross-border shopping is good news for the local economy, but there are challenges ahead, said ComMark Trust tourism sector specialist, Joseph Chikwendere. With more than half a million people coming into South Africa to shop every year, bringing in between R15bn and R20bn, research done by ComMark with the environmental affairs and tourism department and the City of Johannesburg, shows that cross-border trade is an important contributor to the country. It is estimated that 450000 shoppers arrive by road and a further 90000 shoppers by air from other African countries. But “shoppers from southern Africa experience problems such as transport inefficiencies, difficulties with getting their VAT (value added tax) refunds, the lack of accommodation, and with the high crime rate most of them are not safe”, said Chikwendere. Foreign shoppers are by law entitled to a 14% VAT refund of the total costs of the goods purchased in the country. But ComMark Trust said there was about R215m in unclaimed VAT, due to a lack of claiming facilities at border points, which potentially cost the country hundreds of millions of rands in lost revenue. If claimed, cross-border shoppers could plough this back into the country’s economy, he said. He said those who flew in could claim their money back easily because customs facilities at airports were made more available and were more efficient than those at the borders. Unlike their European counterparts who use credit cards and travellers cheques to buy goods, cross-border shoppers carry cash with them, presenting an opportunity for banking services and storage facilities for their goods. As far as accommodation is concerned, many cross-border shoppers cannot afford overnight accommodation and “catch a nap in the bus, on their way back home”, said Chikwendere, opening yet another opportunity for the supply of cheap accommodation. “If these constraints could be addressed, it could lead to an increase in arrivals as well as increased spending per consumer through longer stay,” said Chikwendere, comparing the situation to Dubai, which has evolved into a shopping mecca in the Middle East from a desert country 20 years ago. | |
South African Migration Project (SAMP) - Queen's University - http://www.queensu.ca/samp |