The boom that never was

IT’S BECOME a common sight to see Turkish Cypriots strolling through Paphos Gate towards the Ledra Palace Checkpoint, laden with Woolworth’s bags filled with detergent, dish washing liquid and shampoo.
On the other side of the Green Line, however, on the high streets of occupied Nicosia and Kyrenia, the expected bonanza from Greek Cypriot shoppers stocking up on cheap goods has simply failed to materialise.
One shopkeeper in Kyrenia told the Sunday Mail this week: “I’m going to start charging an entrance fee, like a museum. All they do is browse and look around and leave without buying anything.”
Indeed, instead of the expected shopping boom from Greek Cypriots in the north, it is Turkish Cypriots who are crossing south to do their daily shopping, taking advantage of cheaper imported goods. Fears that businesses in the north may be losing out to cheaper consumer products on the other side of the Green Line has even prompted the Turkish Cypriot authorities to slash duties on a selection of items.
Alp Orek, the manager of Levent Foods, which operates Lemar Supermarkets – the largest chain of supermarkets in the north – said more long-term planning was needed to balance out the competition.
“The reduction of duties was rushed, but it will bring some relief to the marketplace and the consumer,” he admitted, adding that the cost of detergent, dishwashing liquid, softeners, soap, personal hygiene items, toothpaste, shampoo and gel had now been cut by up to 25 per cent.
“It was more of a knee-jerk reaction; they could have taken longer term precautions. But unfortunately, here, short-term answers are found to handle daily issues,” he added.
He argued there should have been a smoother transition, since a gradual reduction of duties would have made it easier for shopkeepers and importers having to use up old stock.
And he added that duty was not the only reason for higher consumer prices in the north, with the high cost of shipping adding to the market shelf price.
Ozerk said the cost of a container delivery to the north could be as high as $1,500, twice as high as to the free areas.
“They have a higher turnover rate, and they pay less for shipping; and for some products, shipping plays a significant role in price determination,” said Ozerk.
Nevertheless, many items in the north are cheaper, but despite the competitive edge, Turkish Cypriot shopkeepers are seeing little return from visiting Greek Cypriots.
“There is no increased activity on the high street since the opening of the borders,” said Yuksel Akay, the owner and director of Akay Opticians in Kyrenia.
“Greek Cypriots ask for prices on various items, but are not buying anything at the end of the day. It’s as if they were doing market research,” said Akay.
“Our prices are cheaper. For example, I saw a pair of Channel glasses in the south for £150, and we sell exactly the same pair for £104,” said Akay, but Greek Cypriots are still afraid to shop.
“Out of 10 Greek Cypriots coming into our shop in a week, only two might make a purchase; that compares to nine out of 10 for Turkish shoppers,” he said.
“We even had a special campaign offering an outright 20 per cent discount to Greek Cypriots, and they still don’t buy,” he said.
Down the road, Hulusi Kemaler is the agent for Nike shoes and products in the north. “There are a lot of Greek Cypriots on the streets, especially at weekends, and we get a lot coming into the shop just to look. Some do buy, but they are few and far between,” Kemaler said.
Those Greek Cypriots who did buy goods wore them and didn’t want the bag, Kemaler added.
“They look as if they want to buy, but they are scared to make a purchase, afraid they will lose it to their customs officers,” he said.
Ayhan Eken, Manager of Altinbas Jewellers, said he had actually seen a 50 per cent loss in business compared to last year.
“The Greek Cypriots seem afraid of shopping in the north, afraid of being over-charged and worried about their customs,” said Eken.
One restaurant in the harbour said, “They’re not eating as much as they used to. They bring their coolers in their cars packed with lunches, they even bring their own water.”
“The only thing they buy is ice cream and ekmek kadayifi,” he added.
Still, Ozerk said any trade was better than no trade.
“The borders have opened and tens of thousands have crossed to the north. What has been the benefit? If they haven’t done anything, they have at least drank water, or eaten at a restaurant,” he said, adding: “Morale has improved, a sense of security has begun to set in.”
Despite his poor sales, Eken of Altinbas Jewellers remained philosophical. “You can’t buy an environment for peace; we have to be patient, and accept them as coming and just looking,” he said.