vouchers to Bermudians or visitors leaving the Island.

The Passenger Tax Amendment Act 1995 which was passed in the House of Assembly on Monday night also allowed for a $5 increase in the departure tax from $15 to $20.

The act is aimed at imposing on "certain enterprises connected with the travel business a duty to make air passenger tax vouchers available to travellers.

"And to introduce for air passengers the new tax structure.'' Those travel and hotel businesses who do not offer the $20 voucher will be guilty of an offence and therefore liable to a fine of $500.

The Act also states "If a final account for accommodation is settled by or on behalf of a hotel without one tax voucher being offered for purchase by the person paying the account for each person to whose accommodation the account relates, the operator of that hotel is guilty of an offence.'' And, if a travel passage out of Bermuda is sold to any person on behalf of a travel agency without one tax voucher being offered for purchase by that person in respect of that travel passage, the operator of that agency is guilty of an offence.

Finance Minister the Hon. David Saul said that as Bermuda will be taking on the $20-million cost of running the airport Bermudians will have to do their part.

He also said that hotels and travel agents will be given a discount as an incentive to sell the vouchers.

Shadow Minister of Finance Mr. Eugene Cox said that though the idea for vouchers was constructive "will we allow hotels to put a mark up on the vouchers in order to make a profit.'' He added: "The increase from $15 to $20 will have an unfavourable impact on the tourist industry.'' Mr. Cox also said Government should have kept the separate departure tax costs for children and adults.

"It makes a lot of sense to differentiate between a child and an adult. This party will have to vote against this bill.

Shadow Minister of Tourism Mr. David Allen said that it was the "perception'' that was the problem.

"This kind of increase is inciting people to view Bermuda as overpriced.

It's the straw that broke the camel's back. We will now have the highest departure tax in the world.

"Even if the tax had a different name it might be a better sell,'' Mr. Allen said.

Opposition leader Mr. Frederick Wade said: "It will be an offence if hotels and travel agents do not offer the voucher and it will be an offence if tourists refuse to pay it.'' Mr. Ottiwell Simmons (PLP) said visitors were being taxed a total of $325 while in Bermuda with gratuities, services, departure tax etc.

And Shadow Minister of Delegated and Legislative Affairs Mrs. Lois Browne-Evans said that the Bill was badly drafted.

"There will be no policy for hotels as to whether or not the voucher has been offered. Government will have to prove that hotels and travel agents did not offer the vouchers. They will have to be given some incentive.''