Mr. Speaker, it is with considerable pleasure that I rise today to inform this Honourable House that Cabinet recently approved amendments to the Tourism Investment Act 2017.
Mr. Speaker, the purpose of these amendments is to permit the Minister responsible for Tourism greater discretion under the Act in the grant of relief to developers and those investing in attractions, restaurants and hotels.
Mr. Speaker, Honourable Members of this House will recall the grant of relief related to the payment of applicable taxes to the developers of the Fairmont Southampton hotel for a period of fifteen (15) years and the jurisdictional analysis that accompanied that consideration. I hasten to note, Mr. Speaker, that other competitor jurisdictions provide relief of up to twenty (20) years (and in some cases longer) for developers investing in hotels for both new hotel development, as well as the refurbishment of existing hotel properties.
Mr. Speaker, in keeping with this trend and in an effort to secure further investment in Bermuda’s tourism product, I would like to remind this Honourable House of Government’s undertaking in the 2022 Speech from the Throne:
“The Government’s role is to provide the legislation that will support a tourism recovery and as such, in this Session, the Legislature will take under consideration amendments to the Tourism Investment Act 2017 to permit the Government greater discretion in the grant of relief under the Act to developers and those investing in attractions, restaurants and hotels.”
Mr. Speaker, the Act currently permits a maximum of ten (10) years of relief in the case of a new hotel and specifies the period of relief to be granted in the case of refurbishment of a hotel, a new or existing restaurant or an attraction. A grant of relief for a longer period requires an Act of the Legislature specifically drafted for that purpose.
Mr. Speaker, I am pleased to inform this Honourable House that Cabinet has approved amendments to the Act that will permit the following discretion in the grant of relief (with all other elements under the Scale of Relief unchanged):
- A new hotel – up to 15 years
- A refurbished hotel – up to 15 years
- A new restaurant – up to 5 years
- An existing restaurant – up to 3 years
- An attraction – up to 5 years.
Mr. Speaker, an additional amendment to the Act will permit the Minister to consider the aggregate value of investment in any property over a period of seven (7) years prior to the instant application for relief.
Mr. Speaker, it is my firm belief that these amendments will provide the added incentives for entities to invest in Bermuda’s tourism product and by extension, provide wide-reaching economic benefits for our country.
Mr. Speaker, having acquired Cabinet’s approval of these amendments, I confidently anticipate being able to bring these amendments to this House during the next Parliamentary session. It is my fervent hope, Mr Speaker, given the positive impact they will have on our tourism industry, that these amendments will meet with the resounding approval of Members of this Honourable House.
Thank you, Mr. Speaker.