ABSTRACT
Borders create both barriers but also opportunities for tourism. One important pull factor for tourists crossing the border is shopping. For cross-border shopping to become a major attraction for tourism, the border to be crossed needs to permeable enough, regulations (visa requirements, customs, etc.) need to favour cross-border shopping, the local infrastructure needs to facilitate consumer spending and potential tourists need to be aware of the opportunities of cross-border shopping (marketing). Cross-border shopping is commonly a combination of taking advantage of the product attributes (lower prices, better quality, etc.) at the other side of the border and wanting to experience something different and unique (“unfamiliar”) but at the same time convenient enough (“familiar”). While cross-border shopping is commonly considered to benefit one side of the border more than the other and believed to lower domestic demand (the substitution effect), it can lead to significant economic gains for both sides of the border. This is because many tourists will likely combine domestic travel and spending in domestic tourism facilities with outshopping abroad. Thus, cross-border shopping contributes to the attractiveness and competitive advantage of borderlands on both sides of the border. The author examines the drivers of cross-border tourism, including its economic, recreational, and touristic rationales. He also highlights the preconditions that are typically needed for people who undertake this form of international commerce, namely border permeability, permissible regulations, and a knowledge of what lies on the other side.
