IN-BOND merchants have described 2001 as their worst year for business in recent time.

According to vice-president of the Duty Free Merchants’ Association, Kumar Sujanani, business fell by over 40 per cent last year, leaving several merchants in financial difficulties.

He told the Observer that business was slow in the first half of the year, but that the worst came after the September11 bombings in the United States.

“We were hoping that things would begin to pick up at this time during the winter tourist season, but it is still very slow,” Sujanai said over the weekend. “We understand from our partners that we are not to expect any serious improvement before February,” he added.

He said duty free merchants have had to cut back drastically on their expenses in order to keep business alive. “The only area we have not cut back is on our staff because we have to maintain a high level of service.”

Sujananai, who operates Gem Place duty free stores, pointed out that heavy discounting has been taking place in nearly all areas of the tourism sector in order to attract business. “The cruise ships, like the hotel, have been discounting the cabin tremendously in order to remain afloat. We also find that they have been a big cut back in spending,” he said.

And, both Sanju Chatani, owner the Taj Mahal duty free shopping complex and Jim Lakhwani, owner of the Soni’s Plaza, the largest duty free establishment in Ocho Rios, said business suffered a major fallout in 2001.

Chantani said that all his 32 shop owners reported a significant drop in sales despite having a reasonable flow of visitors over the past two months. “The cruise ship arrive, tourists are coming in to look, but they are not spending,” he said.

However, the downturn in business is not only confined to owners of duty free stores as gifts shop owners and other tenants in the large Ocean Village Shopping Centre in Ocho Rios said it has been very bad for them.

Frances Brook-Davis of Menco store said stores in the shopping centre were being starved of business.

Meanwhile, chairman of the Ocho Rios Cruise Shipping Council, Michael Belnavis, is forecasting improvement in cruise business for 2002.

According to Belnavis, at least three new ships will be joining the regular scheduled vessels in April, with one vessel planning to home fort in Montego Bay as of December. He also said the scheduled America’s sail event in June should give added boost to the struggling industry.