From commercial prosperity to economic decline: Juan Griego became a ghost town in Venezuela’s Margarita island
The city of Juan Griego is known for its beautiful sunsets and once had a thriving commercial area, but today more than 90% of the free port’s warehouses and stores are permanently closed.
By Dexcy Guédez//Corresponsalía lapatilla.com
There are entire blocks of closed establishments, many of which display an “on sale” sign.
Although the merchants are afraid to talk about the debacle observed throughout this commercial zone, they anonymously assure that high municipal taxes have pushed the second commercial city of Margarita to an irreversible decline.
“The first reason why La Marina Street is desolate, which is the main thoroughfare, is the tax laws we have. The law is not friendly to the taxpayer. It does not look for a way to reconcile debts. First, I think they are the highest tax rates at the regional level. And the second is the harassment we have to endure,” said a merchant on condition of anonymity.
He indicated that they have until the 15th of each month to declare their taxes, and if they do not do so within that period, the prosecutors from the Marcano Municipality mayor’s office go directly to the “punto de venta” (point of sale, Smart Card Reader) to extract the payment of the debt.
“One already knows that if you do not declare before the 15th, you will be fined. And they still come looking for you with a smart card reader so you can pay it. And those who cannot, have no choice but to close and leave,” he added.
More expenses than profits
On La Marina Street, in front of Juan Griego beach, there is a mini shopping center that previously represented an option for small merchants and entrepreneurs, but it is currently almost empty.
“Caño Mánamo” is its name and of 31 small establishments, only 6 are active, which represents less than 20%. For these merchants, the danger of closure is also “breathing down their necks.”
“It is not fair that in addition to paying the rent and taxes to the mayor’s office, we have to pay the electricity bills that come in at 150 dollars a month and the water bill at 300 dollars, and we never enjoy a working service,” warned a merchant who also preferred not to reveal his name for fear of retaliation by the municipality.
He explained that with the new Tax Law, the patent must be renewed every 3 years, but they must also pay 15 euros for advertising, renewal procedures and all the permits and bureaucratic paperwork they have to deal with.
Fire sales
Fate plays a trick on a 40-year-old perfume shop on the main commercial street of Margarita’s sunset city.
Its owner did not want to identify himself for the same reasons as the rest of the few merchants who are still open and who until now have managed to survive the tributary siege that suffocates them.
“I’m liquidating to leave, because no one comes here. Before there were waves of people buying the perfumes they liked and the ones in fashion,” he says, without knowing that he was in front of the lapatilla.com reporting team.
When asked about the foreign tourists who are now visiting the island and that was hoped would reactivate the local economy, he said that Russians do not buy and when they do, they ask for a discount.
“What do those friends of Maduro (Nicolás) come to do here, if they don’t buy anything? If two beers are offered for a dollar, they want 3 for the same price,” he pointed out. .
Food sales reactivated
Some establishments that timely changed their business model and started to sell food have reactivated in recent months, mostly thanks to the residents of the area who have energized them.
“The people who buy (food) live around the center and generally buy when they receive the bonuses through the Patria System,” commented one of the merchants who has seen his grocery and non-perishable food commercial establishment resurface.
In the tour that the reporting team of lapatilla.com took through the commercial center of Juan Griego, unfortunately it was noted that there were not even 20 stores open.
The administration of the Chavista mayor of the Marcano Municipality, Yul Armas, instead of promoting the economic development of the city, has caused the bankruptcy of many businesses with high tax rates that are impossible to pay in a context of economic recession. The results are visible to all: Juan Griego is today a cemetery of closed premises, a ghost town, devastated by the voracity of Chavismo.