2% VAT increase would sway many Christmas shoppers to go north poll reveals

The numbers of people heading North for their Christmas shopping is set to increase this year, according to research from AA Travel Insurance. Of the 11,500 people surveyed almost 18% said they were planning to do so, up from 16% in an identical poll carried out 12 months ago. The main reasons given for visiting Northern Ireland are to shop for alcohol, groceries and gifts in advance of Christmas.

The poll which asked a series of tracker questions in line with those asked this time last year indicates that despite a 14% increase in the price of unleaded petrol and a 16% increase in diesel year on year, the lure of cheaper prices is still tempting many people to head across the border to save on their Christmas shopping bill.

Many more of the poll’s participants indicated through individual comments that they will strongly consider more frequent shopping trips across the border starting with their Christmas purchases if the speculated 2% VAT rise to 23% is introduced in the 2012 State budget.  In total 450 of those surveyed volunteered additional comments on the contentious “buy local” versus “cheaper overseas goods” shopping debate.

The AA Travel Insurance poll also suggests that those planning to do some Christmas shopping further afield has dropped marginally year on year from 12% to 11%.

Again this year, feedback from the poll was largely polarized with some vowing to steadfastly support local enterprises through their shopping patterns while many others indicated that value was their key concern.  Others again shared their views that cross border shopping is potentially a false economy on account of hefty fuel prices.

“It’s important to remember that if introduced, the higher rate of VAT will also apply to our fuel which is already hovering in and around the €1.50 mark per litre of petrol.” Says Faughnan.  “Fuel prices are significantly up on this time last year and our advice is use our new fuel calculator on AA Routeplanner so that you’re fully aware just how much your journey will cost you.”

The AA is advising those fortunate enough to be travelling abroad between now and Christmas for shopping and other purposes not to overlook travel insurance.  With AA Travel Insurance policies, if your luggage is lost by the airline or your personal effects are lost, stolen or damaged during your trip you are covered up to €3000 so it’s well worth the added peace of mind if planning on shopping abroad this Christmas.

Those wishing to share their views with the AA on the topic of cross border shopping are invited to post a comment or drop them an email to publicaffairs@aaireland.ie

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Notes to the editor;

Fig. 1 Whether or not poll respondents will be leaving the State between now and this Christmas to do

some Christmas shopping? (Based on 11,542 responses collected between 18^th – 23^rd November 2011)

Fig 2. Whether or not poll respondents will be leaving the State between now and this Christmas to do

some Christmas shopping? (Based on 7,643 responses collected between 11^th – 23^rd November 2010)