Shopping while on vacation in Cayman is not only essential for buying great souvenirs it can also offer substantial savings too.

In addition to local arts and crafts, there are world-class stores selling designer jewellery and brand-name goods at tax-free prices. Everything from clothes to electronics and tropical foods is available in addition to duty-free goods such as jewellery, watches, fragrances and cosmetics, china and crystal.

"Cayman's status as a duty-free market means that when we bring certain products into the country we are not charged an import duty. That allows us to keep our prices low and pass the savings on to our customers," explains Lance Kidder, marketing manager with Kirk Freeport, one of the leading retailers in Cayman.

Savings

In general you can expect to save around 10 to 20 per cent on watches and jewellery when buying in Cayman, compared to the US. In some cases, the savings can be even greater.

"A lot of manufacturers will allow us special retail pricing," Lance explains. "For example, Citizen, which sets its prices, can sell at 44 per cent less in Cayman than in the US. In addition, we also sell our products tax-free. The average sales tax in the US is around 6-7 per cent, so that is a considerable saving."

Jewellery

Many shops have a dazzling variety of jewellery in store, including Caymanite, which is a semi-precious stone found only in Cayman, mainly on Cayman Brac. Diamonds, rubies and emeralds are all on display and pieces by many well-known designers including David Yurman, Roberto Coin and Chopard, can be snapped up at considerable savings over US and UK markets.

Romance is in the air in Cayman and this is the ideal place to purchase engagement and wedding rings. Traditionalists will find solitaire diamonds and there are many other stones as well as plain bands in platinum, white and yellow gold to choose from.

Watches

"We have customers that travel to the Cayman Islands with a primary purpose of buying a watch," explains Lance. "Considering the duty free savings we are able to offer, in some instances a customer can save enough on a watch purchase to offset the cost of the flight to Cayman. And because of our relationship with our suppliers, we have customers from around the world finding watches they can not get at home." With more watch brands under one roof in Kirk Freeport's Bayshore Mall store than any other place in the Caribbean, a look inside brings a realisation of what Lance is saying.

Crystal and china

Although visitors may not intend to buy china or crystal while on holiday in Cayman this is too good an opportunity to miss. With names such as Waterford, Wedgwood, Lalique, Lladro and many others at duty free prices, shopping for in-home entertaining products is as metropolitan as Paris, France. Some boutiques offer free or discounted shipping.

Fragrances and cosmetics

Fragrances and cosmetics, too, can be bought for bargain prices. And since Cayman is a British territory, you will be able to find some cosmetics and fragrances that are onlymade for the European market and not available in the U.S.

Local products

Other not-to-be missed purchases include the islands' world-famous rum cakes as well as local artwork and crafts which represent Cayman's unique culture.

Allowances

US citizens, including children, are allowed to take home $800 worth of goods per person before duties may apply upon re-entry to the US. Fragrance purchases do not count toward an individual's $800 allowance.