Economic Recovery Plan Status as of 31 January 2023

Government is committed to ensuring a properly regulated gaming industry for Bermuda. Government has advanced its legislation and planning to introduce gaming in Bermuda. The overall goal is to diversify both Bermuda’s economy and tourism product.

The Bermuda Gaming Commission granted Bermuda’s first casino license to the St. Regis Bermuda Resort. Bermuda’s established legislative framework for the licensing and opening of a casino involves a three-stage process. Following an extensive and in-depth suitability review, the Bermuda Gaming Commission has granted Bermuda’s first casino license to Hotelco Bermuda Holding Ltd. o/a St. Regis Bermuda Resort after the second phase review was complete.

The license issuance permits the applicant to address the necessary steps to comply with all the legislative requirements to open the casino as the third and final stage of the application.

The third phase is predominantly operational in nature and will include, but is not limited to, the establishment of the casino’s compliance committee, the finalization of internal controls to ensure compliance with the statutory framework, the recruitment and training of employees, and the purchase, shipping and installation of gaming equipment and systems.

The casino's opening date entirely depends on the casino operator meeting all legislative requirements to open and is subject to the Commission’s review and approval.

The Department of Workforce Development continues working with casino operators to define employment and training opportunities within the industry. Progress has been made with a property that has supplied several job descriptions for consideration. Work is ongoing to establish  training programmes and development opportunities for Bermudians in the casino industry.

The Government aims to work with the private sector to construct a medical tourism facility to create jobs and year-round visitors to Bermuda.

Interest and investigation into Bermuda Medical tourism continue with an international private sector investor and consultant.

Food security and lowering food costs for Bermuda is a priority of the Government.  As such, the goal is to create a Food Cooperative that will support the use of technology, such as vertical farming and aquaponics, to boost domestic food production. One of the first projects to meet this goal will be a large-scale vertical farming facility, partially powered by renewable energy that will produce 35% of Bermuda’s demand for annual leafy vegetables.

Work is ongoing to establish a local Food Cooperative that uses Controlled Environment Agriculture (CEA) technology to boost domestic food production, increase food security, and lower food cost. At this time, the international partner for the planned large-scale vertical farm facility has undertaken a strategic review that may potentially impact plans contemplated in Bermuda. A further update will be provided pending the outcome of this strategic review.

An online SME marketplace will allow entrepreneurs easy access to sell their goods and services online without having to deal with costly individual setups, large monthly fees and merchant account complexities.

The online platform, aptly named byBermuda, is a local online marketplace where people come together to sell and buy unique Bermudian products and experiences. It’s a community of local entrepreneurs, highlighting the best of Bermuda’s innovative products and services while allowing connections to consumers both local and beyond Bermuda’s shores. With byBermuda there’s no warehouse – just Bermuda’s entrepreneurs selling the things they love. The BEDC makes the whole process easy, removing the expensive cost and hassle of an online presence for businesses, while helping consumers connect directly with makers to find or experience something extraordinary, through a convenient and central Bermuda-branded hub.

BEDC is in the process of relaunching the byBermuda website. It is anticipated that the improved online retail platform will begin onboarding of local vendors in January 2023.

The Government aims to support the construction of residential developments in Bermuda’s Economic Empowerment Zones to increase the supply of quality, affordable residential accommodation, driving down rental costs.

The Government seeks to stimulate growth in Bermuda’s economy, and in particular within the Island’s 3 Economic Empowerment Zones (EEZs – Northeast Hamilton, Somerset, and St. George’s), by widening the scope of potential investment through providing for the creation and support of Residential Approved Schemes. Notwithstanding the rich histories within these 3 zones, it is evident that additional investment is needed for the areas to reach their full potential economically, physically, and socially. As such, the Residential Approved Scheme initiative provides a mechanism by which the Government, the EEZ stakeholders, and the country can achieve this goal. Restrictions on land ownership have been removed – incentivizing a broadening of potential investments in the EEZs, and in doing so further diversifies the potential demand for residential developments, bringing economic growth to these locations.

The goal is development without displacement with Bermudian EEZ landowners required to be incorporated in every approved scheme. As such, no scheme will be approved if the existing property owner is not involved in the proposed scheme in a tangible and impactful way. Every approved scheme will also create new jobs for Bermudians. For continued investment within the economic empowerment zones, land license fees associated with purchasing of the residential units will go into an EEZ community development and investment fund to assist with investing in the people and the programmes in the Zones.

The BEDC currently has mechanisms in place to support residential development within the EEZs. The respective EEZ Officers for St. George’s, Somerset and Hamilton stand ready to assist potential investors with navigating the Economic Development Act, Planning and other requirements for residential developments within the EEZ.

The Bermuda National Space Strategy 2020-2025 will include the establishment of a ‘space ecosystem’ by 2025 and has the following strategic goals:

• Build Bermuda’s reputation as a responsible, leading jurisdiction for space and satellite-related business;
• Enhance domestic space and satellite-related capabilities;
• Further integrate Bermuda with the international space community; and
• Generate revenue from national orbital allotments, of which Bermuda has four.

As more companies look to space, Bermuda can play an important role.

Marketing efforts continue attracting earth stations to Bermuda. Visit http://www.space.gov.bm/ and https://www.bda.bm/industries/infrastructure/ for more information.

A sub-sea communications sector will allow Bermuda to position itself as the North Atlantic communications hub and allow the island to reap the benefits of an industry that provides global connectivity and data protection in an increasingly online world.

The legislatve framework for this initiative is complete. The Regulatory Authority has posted the application and the requirements on its website at https://www.ra.bm/. The Business Development Agency is promoting the availability of two submarine communication cable licenses https://www.bda.bm/industries/infrastructure/. There is also synergy with the National Space Strategy, as earth stations require cables to transmit data and information. Therefore, the more interest in earth stations, the more interest in increasing capacity with submarine cables.

The Government will work to reduce the cost of mortgages by lowering interest rates through measures to increase competition in the banking sector and by working with local banks to provide security for mortgage loans.

On 13 October 2022, the Government announced a pilot programme with the Bermuda Commercial Bank to provide a partial guarantee in support of local mortgages. The Government’s support reduces the risk to the Bank, and in return for the reduced risk, the Bank will offer approved applicants a reduced interest rate starting at 5% and also reduce the standard down payment from 20% to 10%. This limited-capacity pilot programme will benefit over 250 Bermudians.

The Bermuda Economic Development Corporation (BEDC) continues to provide support to SMEs as the country navigates through the post-pandemic economy. Through continued financial support from the Government, BEDC provides a range of products to assist Bermuda’s local small and medium sized enterprises (SMEs).  BEDC’s current financial and concession products for local entrepreneurs to take advantage of are as follows:

1. Pre-Approved Loan Guarantees - Bermuda Credit Union Coop Society
2. Loan and Overdraft Guarantees – Financial Institutions
3. General Micro loans
4. Debt Consolidation Micro Loans
5. Sports Club Micro Loans
6. New Startups Payroll Tax Relief
7. Economic Empowerment Zones Payroll Tax Relief
8. Economic Empowerment Zones Customs Duty Deferment
9. Retail Goods Customs Duty Deferment Letter of Credit

To date, the BEDC has deployed $6m in COVID support to SMEs. The BEDC funding for COVID support has ended and this initiative is considered to have achieved its intended outcomes.  There will be no future updates on this initiative. 
The BEDC continues to support SMEs with additional initiatives add, such as:

1. Business Services grants program to support SMEs with professional services, such as accounting, marketing and legal.
2. Increase direct funding limits available to each business
3. Grants to assist with reducing operating costs to businesses. e.g. energy audit

The Government is committed to the creation of a Bermuda National Digital Bank with shared available for Bermudian ownership, providing an opportunity for a new generation of investors to create lasting wealth by supporting the next wave of financial services, connecting Bermudians to the global world of digital payments.

The Digital Bank Business Plan completed in 2021 provided four pathways for consideration. The Government has engaged with  industry stakeholders to evaluate the  appeal, feasibility, and practicality of each option. A decision on the preferred pathway is anticipated in December 2022.

The Government continues to review the current system for handling Water and Wastewater and working with the private sector to facilitate systems that would properly treat sewage waste across the island, including the two Municipalities.

Phase one of this massive undertaking involves trenching much of the main roads in St. George’s and similar work in Southside to completely replace the infrastructure from piping, pumping stations, water producing plants and waste treatment plants to provide relief to the long suffering residents of these areas in providing reliable water and waste water services. This project addresses the country's needs of getting people working, earning and providing for their families while their valuable labour is transforming Bermuda’s infrastructure for the better.

$7M interim investment in plant stabilization works has commenced in this fiscal year.. The first project for the refurbishment of the stack is currently out for tender. Tenders for two additional projects are being prepared for release, the replacement of the refuse cranes and the replacement of the plant transformers. Revamp of the pollution control system and boiler works are slated for spring 2023.

Trenching works in St. George and Southside for installing potable water, and wastewater water piping is ongoing.

The Government, through the Bermuda Economic Development Corporation (BEDC), is working to develop a plan for a Fisheries Development Centre (FDC) in partnership with representatives from the Department of Environment and Natural Resources (DENR) and the Fishermen’s Association of Bermuda (FAB).

Commercial fishing is one of the oldest industries in Bermuda and continues to be an important part of Bermuda’s culture. However, its contribution to the economy has not grown proportionally to Bermuda’s population size or economic growth.

The FDC can be the catalyst that transforms the island’s artisanal commercial fishing industry to the next level, making it profitable for all participants, while improving the island’s food security, through the provision of high quality, sustainably harvested seafood from local resources, and diversification of its economy. The FDC will have the ability to provide a number of products and services for the industry including those related to wholesale; retail; export; by products; and on-site experiences.

The BEDC has commissioned an independent financial review of the Shoreside Fisheries Facility business plan, including revenues and cash flow.

The goals of the Shoreside Facility include.

• Cooperative processing of local fish and selling to Bermuda marketplace
• Redesign of commercial fisheries for Bermuda
• Cryogenic freezing of local fish
• Shift focus away from reef fish to pelagic fish within 200 nautical-mile economic exclusive zone
• Increase productivity for Fishermen (fishing rather than cleaning and selling fish)
• Potential to create an export market
• Cooperative model with fishers as members and/or users of the cooperative.

Government is committed to ensuring a sustainable transportation infrastructure that is safe for the environment. The Ministry of Transport is committed to introducing an electric charging infrastructure. In the first instance, the Government will facilitate the installation of an Electric Bus Charging Facility at the Department of Public Transportation's Fort Langton, Devonshire, Bermuda Facility to support the operations of new electric buses.

Construction is ongoing at the Fort Langton Bus Depot for the Electric Bus Charging Facility (EBCF), expected to be complete by the end of the fiscal 2022/23 budget.

The working group responsible for Electric Vehicle (EV) charging infrastructure will explore.

• Government fleet EV charging facilities
• Public parking bays with level 2 EV charging
• EV charging for residential developments e.g.condominiums  
• Time of Usage (TOU) or EV charging electricity rates
• Vehicle to Grid (V-G) Demand-Side Management.

Through continued infrastructure investment, the Ministry of Public Works will increase the stock of affordable housing throughout the country.

The BHC has 700 units that are presently occupied – the maximum capacity. A renovation programme is underway that will provide an additional 77 units to the inventory, bringing the total number of rental units to 777.

As of September 2022, seventeen [17] BHC residential units have been renovated and returned to the rental unit stock – thirteen [13] units as part of the routine maintenance programme, while four [4] units have been completed under the Government’s Economic Stimulus Programme. Through the Economic Stimulus Programme, a further thirteen [13] units are undergoing renovation at varying stages of development, from planning approval to procurement.

The Government will complete work to establish the Uptown Development Authority in Northeast Hamilton, whose mission will be to implement the North Hamilton Local Plan, drive residential and economic development projects, and rebrand the area formally as Uptown.

Since the dismantling of the Economic Empowerment Zones Agency in 2014, there has been a noticeable absence of a dedicated body solely focused on driving economic regeneration in Northeast Hamilton. As such, the authority will be a public body established under the Bermuda Economic Development Corporation whose sole remit will be to facilitate the economic, physical, and social development of the Northeast Hamilton Economic Empowerment Zone (NEHEEZ).

The effective implementation of a local authority responsible for the NEHEEZ will require a holistic approach which builds on existing efforts to develop Uptown with key community stakeholders as partners. The authority will be a flexible, responsive, and empowered public body with the capacity to carry out a wide array of semi-autonomous functions in order to develop the economic, social, and infrastructural capacity of local residents and business owners within the Northeast Hamilton community.

The BEDC Northeast Hamilton Development Team is executing the local NE Hamilton development plan made operative in July 2022. The team has currently engaged in the following activities.

• Prepared a development brief for each lot
• Completed an internal checklist for potential investors
• Mapped the seven districts within NEHEEZ, of which ‘Uptown’ is one.
• Developed a marketing plan
• Developing a website to promote the approved residential scheme.

The Department of Energy will create a Green Energy and Environmental Justice Fund, which will encourage local and overseas investors to provide funding for:

• Installing solar for residential homes and small businesses;
• Additional training to develop solar installers and energy managers;
• The initial investment to entrepreneurs who are looking to enter the renewable installers or energy management business.

Community Solar has been identified as the best investment model for the Green Energy Fund. The legislative framework in relation to the licensing of Community Solar is being prepared. Amendments will be made to the Electricity Act to allow for this new and innovative framework.

The Green Energy Fund will specifically target local companies, especially Bermudian entrepreneurs, and jobs for local installers. The Green Energy Fund will also provide benefits for those families that cannot afford to invest in the installation of the projects.

The Green Energy Fund will be formalized under the Marine Development Act. The Blue Economy Strategy model has become the Blue and Green Economy Strategy to include both ocean and terrestrial renewable energy, which will include the Community Solar solution.

The Economic Investment Certificate & the Residential Certificate Program encourages and enables high net worth individuals to make substantial economic investments into Bermuda.

The EIC policy was designed to stimulate economic activity, create the environment for job creation, and help market Bermuda as a place to reside and do business. EIC recipients are required to invest a minimum of $2.5 million into the Bermudian economy, and investments may be made in one or more investment categories and benefits for investors include residency rights, among other benefits.

The Economic Investment Certificate and Residential Certificate Policy can be found here. 

The Economic Investment Certificate (EIC) has exceeded expectations. Launched on 1 March 2021, the total amount invested as of 31 January 2023 is $369 million. Over that period, the investments represent 27 EIC applications approved by the Minister with 71 EIC Certificate Holders, which include dependents.

The Government of Bermuda has partnered with the Bermuda Business Development Agency to provide a Concierge service for interested and highly qualified individuals. For complete information and to register your Expression of Interest, please click here to go to the BDA Website.

To capitalize on the increasing number of Digital Nomads and students in tertiary education completing their courses online, the One Year Residential Certificate allows persons such the ability to reside in Bermuda while working remotely, and Non-Bermudian Post-Secondary Students the ability to complete their higher education from Bermuda. They will be enjoying life in Bermuda while contributing daily to the local economy.

Since launching the ‘Work from Bermuda’ (WFB) initiative on 1 August  2020, it has yielded continued economic activity in Bermuda, including

In its efforts to retain and expand the residential population in Bermuda, the Government increased the maximum period that visitors may stay on the island without further permission from the Minister responsible for Immigration from 90 days to 180 days.

Further, with the implementation of the Repatriation and Mixed Status Families legislation (Bermuda Immigration and Protection Amendment Act 2020) the Government has allowed for persons born overseas to Bermudian parents to be Bermudian from birth as of the effective date of the legislation and moving forward.

Additionally, in March 2021, the Department of Immigration removed the administrative requirement for applicants to produce an Affidavit of Domicile to better facilitate persons born overseas to Bermudian parents to apply for and obtain Bermudian Status.

Additionally, legislation to advance comprehensive immigration reform by providing a process for Long-Term Residents to apply for Permanent Residency in Bermuda was passed in October 2021 and was completed once the Immigration Amendment Act came into force on 1st December 2021. The Government has also released a Position Paper on Long-Term Residents here. 

On January 2022, the Department of Immigration began accepting applications for Permanent Resident’s Certificates (PRC) based on the new provisions under the amendments to Section 31 of the Bermuda Immigration and Protection Act 1956.  As of January 2023, the Department had received 189 applications for PRC, and 53 have been approved.

On 1 September 2020, the Repatriation & Mixed Status Families amendments to the Bermuda Immigration and Protection Act 1956 came into force.  On 14 September 2020, the Department of Immigration began accepting applications for matters covered under the legislation.  As of the end of October 2022, the Department had also received 188 applications for PRC and Bermudian Status.

The National Reemployment Strategy is designed to get people back to work by reducing current unemployment, preventing future unemployment, and assist in facilitating employment opportunities. The strategy focuses on creating employment opportunities, enhancing the labour supply, promoting equality and equity in the labour market, and building a more robust workforce through information, training, and education.

The Department of Workforce Development and the Bermuda Hotel Association will host a hospitality recruitment drive on Wednesday, 14 DECEMBER 2022, from 10am – 4pm at the Hamilton Princess downstairs in the Princess Rooms.

The Government will implement a Youth Employment Strategy to meet the identified needs of unemployed persons between the ages of 18 and 26, guide unemployed Bermudian youth back to work, and train them in jobs currently occupied by guest workers. The Youth Employment Strategy will eventually form part of the National Reemployment (Jobs) Strategy and will allow the Government to focus its efforts on this demographic group. Therefore the Youth Employment Strategy is currently being developed separately.

25 Nov 2022 website update - Bermuda’s Youth Employment Strategy was published in June 2022. Youth Employment Strategy has had two Graduate Trainee Programmes held thus far. They have provided twenty-one (21)  recent college/university graduates with coaching, employability skills training and one-on-one support to develop their personal brand. They have also had the opportunity to gain industry experience in their area of study. After the programme, participants benefitted from a three-month work placement sponsored by the Department of Workforce Development to assist with transitioning into their careers.

The third cohort of the Graduate Trainee programme commences in November 2022. This is a 10-week paid internship opportunity for recent college and university graduates. There are 15 recent graduates in this cohort.

In October, the DWD Team participated in The Berkeley Institute’s College & Career Day workshop for the Class of 2023. The team spoke to:

• Workforce Development and the services offered to High school Graduates
• Summer Employment/Internship programmes
• Resumes for development
• Scholarship Opportunities

The Government, along with a wide range of stakeholders, will consider the main issues in implementing an Unemployment Insurance Plan for Bermuda including issues such as eligibility, contributions, benefit amounts, duration of benefits, funding, administration, staffing, and legal matters. The goal is to develop an Unemployment Insurance Scheme so that critical social protection is provided to support displaced workers and their families, allowing them to receive a basic income in their time of need.

The government is evaluating the appropriate funding model for unemployment insurance. The supplemental unemployment benefit has been extended until 30 November 2022. Individuals receiving benefits as of 31 August 2022 will be contacted by a Department of Financial Assistance representative and need not reapply. All others in need are encouraged to apply online by visiting https://forms.gov.bm and completing the Supplemental Unemployment Benefits application. Hardcopy application packages are not available.

The public is aware of the challenges facing many hard-working Bermudians who struggling daily to ensure their family’s basic needs are met.

This Government is confident that as we move toward establishing a minimum wage in alignment with a living wage regime, it will improve the lives of many by ensuring that they receive fair and just wages allowing individuals and their families to cover their basic needs.

Generally speaking, a minimum wage refers to a minimum amount an employer is required to pay to persons for their work during a given period, ensuring a minimum threshold for wages across the board. A living wage refers to an amount of minimum hourly pay needed to allow workers and their households to enjoy a “socially acceptable standard of living”.

The Ministry of Economy and Labour has published a position paper entitled Establishing a Minimum Wage in Bermuda. This paper outlines what a minimum wage is, why it is necessary for Bermuda, and the proposed minimum wage rate to come into force on 1 June 2023. The paper is available for review from the Resources section in the Ministry of Economy and Labour webpage on gov.bm at https://www.gov.bm/sites/default/files/220816-Position-Paper--Establishing-A-Minium-Wage-in-Bermuda-16AUG22-v3.pdf.

Government remains committed to a new integrated healthcare model for Bermuda. This Plan will see public and private sectors joining together to focus on patient-centered care in the delivery of essential health services. This will enable Bermuda to realize efficiencies and value in the health system and drive better healthcare outcomes. By focusing on prevention as well as primary and community care, we will be able to combat the imbalanced reliance on expensive hospital care.

The UHC five priority projects include National Digital Health Strategy, Merging Government Insurance Funds, Agreeing Our Starting Points, Integrated Care Pathways and Develop Pan-system for Governance. The Bermuda Health Council has launched a public survey to understand the different views of people about health and illness. For further information, please view the 7 October 2022 Ministerial Statement at https://www.gov.bm/articles/next-steps-universal-health-coverage

Government believes that Bermuda must have a holistic healthcare system that prioritizes prevention, chronic disease management and healthcare delivery via primary care, with a restructuring of the health system financing. One immediate step being taken to contain costs for consumers involves establishing a National Drug Formulary. We will mandate that pharmacies provide pricing information on the most commonly-prescribed medications, to feed into the Formulary. This will permit maximum prices to be set for the most frequently prescribed medicines, reducing costs to patients and providing relief to those on fixed incomes.

The Pharmacy & Therapeutics Committee is scheduled to conduct the  initial phase of drug price regulation in January 2023 and quarterly thereafter.

A regulatory sandbox refers to a regulatory environment that allows innovators to test new technologies and business models without some of the red tape and other established barriers often faced by start-ups, innovators, and new entrants to the market.

The Government aims to develop an energy regulatory sandbox that will encourage developers of new renewable energy technology to test their products in Bermuda, giving Bermudians access to new technology.

The Electricity Amendment Act 2022 has been passed. The Regulations are being finalized that will define the application process, the conditions and the locations.

The Bermuda Ocean Prosperity Programme is a partnership between the Government of Bermuda, the Waitt Institute, and Bermuda Institute of Ocean Sciences (BIOS). The goal of the Bermuda Ocean Prosperity Programme is to foster the sustainable, profitable, and enjoyable use of ocean resources for present and future generations.

The consultation period has been extended to the end of the year. Town Hall meetings have been held. More information can be found at https://www.gov.bm/articles/draft-blue-prosperity-plan-public-consultation-period-extended

The BEDC has been tasked with establishing new and regenerating existing EEZs across Bermuda. The EEZs are designated geographical areas where special programmes are implemented to close the gaps of economic differences that exist in comparison to other areas in Bermuda. This involves providing economic tools to help local businesses thrive; working with key stakeholders to address local community issues; and engaging external partners to invest in these zones.

Despite being located on Hamilton’s active and beautiful waterfront and bounded by vibrant Front Street, Southeast Hamilton has not enjoyed the same level of economic development and regeneration success as can be found in other nearby geographic areas of the City of Hamilton, such as in Southwest Hamilton and Northwest Hamilton.

Given the focused attention on regenerating Northeast Hamilton with the establishment of the Uptown Development Authority, the implementation of the North Hamilton Local Plan, and the introduction of new economic development tools such as Approved Residential Schemes, the Government believes there is synergistic benefit in creating a new economic empowerment zone in South East Hamilton by extending the existing zone in North East Hamilton. This expansion will result in both a direct physical and economic link between Front Street to North Street, while providing the framework for complementary economic development benefits between the 2 neighboring areas.

The three-phase process for establishing SE Hamilton EEZ consists of:

1. Identified 120 businesses in the proposed new EEZ.
2. Surveying of the 120 businesses. Completed on 30 September with 76/120 respondents.

The Government is keen to introduce policies that will progressively liberalize Cannabis laws in keeping with public sentiment on the topic and aligning with other jurisdictions on the matter. A proposed policy sets out the framework of what a regulated Cannabis scheme might look like for Bermuda. It has been principally influenced by existing regulated Cannabis laws in other favourable jurisdictions such as Canada and small island nations in the Caribbean.

On 6 September 2022, the UK Government elected not to ascent to the Cannabis Licensing Bill 2022 as drafted.  The Government of Bermuda intends to continue to advance this initiative, within the full scope of its constitutional powers, in keeping with our 2020 General Election Platform commitment.