Written by JOSEPH WILSON
LIVIGNO, Italy (AP) – On the way up to Livigno, at the top of a mountain before the road descends into the town that hosts snowboarding at the Winter Olympics, sits a lone checkpoint. Its guardhouse and gate are the only signs of the internal financial border within Italy, the one that surrounds the snow-covered valley and the tax-free status it has enjoyed for centuries.
The tax exemptions that make Livigno a consumer paradise have, ironically, left it without the full economic bonus of hosting the Olympics, at least in the short term. Conversely, shopkeepers are squeezed – even as hotels and restaurants are full and making money. Still, everyone is hopeful that the Games will bring long-term development to the area.
Questioning the economic benefits is common in Olympic host cities, and it was the talk of Livigno’s main street during the Games. Unlike other Olympic venues, business owners told The Associated Press that athletes, fans, staff and volunteers have driven out visitors who come to chase free deals during what is often a busy month.
“I’m not optimistic about the Olympics, because you usually work more than twice this time, because this time for us was the high season. Now, this time is like our low season,” said Olga Salari, the owner of a play story full of Lego sets. Olympic visitors, he added, “don’t even visit the shops.”
How bad was it? Salari said he has seen sales drop by 70% compared to February’s average. The Olympics start on Feb. 6-22.
Visitors to all six mountain resorts must have accreditation, lodging reservations, event or ski tickets – so they can’t just be day-trippers to get the deal.
It has been useless since Medieval times
Livigno is called “Little Tibet” because of its historical isolation and the snow-capped peaks that surround it. This town near the Swiss border has had sales tax exemptions since ancient times, which allowed the poor, cut-off area to bring in goods.
When the asphalt road to the south, and later the northern tunnel to Switzerland, finally arrived in the 20th century, that duty-free status became the basis of the economy because it attracted tourists.
Visitors can buy goods worth 300 euros ($356) without the 22% Italian sales tax. There are certain restrictions on perfume, cigarettes, tobacco, alcohol and fuel.
Livigno’s tax break has made it a destination for skiers who take the opportunity to pick up a watch, cosmetics, perfume, electronics or a box of cigarettes before heading home to Austria, Germany, Switzerland and elsewhere. Except for the Olympics, anyway.
“Guests are very interested to see this competition.
Some areas in the mountains are already getting power
According to a report by Italy’s Banca Ifis, the total economic impact of the Games is expected to reach 5.3 billion euros ($6.2 billion). Of that, 1.2 billion euros ($1.4 billion) is estimated to be spent by tourists at the host destinations over the next 18 months. The bank did not break that down by location. The president of the Milan Cortina organizing committee Giovanni Malagò mentioned more than 5 billion euros in an interview with the Italian radio station RTL.
The committee said the Olympics inspired Italian authorities to improve electricity distribution systems in Livigno and other mountain host areas. The development of Livigno’s health clinic and the train service are also heritage investments.
Shops in other areas in the mountains seem to be gaining economic strength.
Cortina d’Ampezzo’s Deputy Mayor Roberta Alverà told the AP by message that the city has seen “a lot of people.”
And they don’t just fill hotels and restaurants. Tourists, as well as Italians with second homes in the glamorous city, also fill shops along the pedestrian-only Corso Italia that runs through the center of town.
In the historic center of Bormio, the cobblestone walkways are lined with fans throughout the men’s Alpine ski racing program, and the shops there have seen a lot of activity.
The hope of benefiting the community
Sergio Schena, a member of the planning committee in the Livigno area, said that it is normal for some businesses to see more jobs than others, but the long-term impact will be positive. The global spotlight should draw tourists from far away, as it did in Turin after hosting in 2006, he said.
“What we expect to happen is that the markets are changing, we have received many visitors from the United States and Asia,” said Schena.
That doesn’t sit well with some store owners. Salari said his business model is based on people driving to Livigno and using the extra trunk space to shop at home. He fears that air travelers will only buy items that are small enough to fit in their luggage.
Still, most people in Livigno – even some shopkeepers – hope that Schema is right, hoping that the televised images of skiers and freestylers flying off the slopes and in the snow park will put Livigno on the world map, and eventually attract even more tourists.
“This is very important because (the Games) provide 360-degree advertising around the world and Livigno is coming very well,” said Derio Claoti, owner of a perfume shop, whose sales took 70%.
A few doors down, at a gold watch and jewelry store, Damiano Longa said he expects the drop in sales to be worth it.
“We hope that the promotion of what Livigno is doing will work for the future,” said Longa.
Associated Press writers Colleen Barry in Milan, Andrew Dampf in Cortina and Pat Graham in Bormio contributed.
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