The Bermuda Hotel Association hopes the Budget speech tomorrow includes relief from rising electricity costs.

“Any assistance that can be provided for local hotels would be very welcome and appreciated,” said Stephen Todd, chief executive of the BHA.

He said the 48 per cent price hike in electricity since last October has been particularly hard on local hotels because they are 24/7 operations.

“Many of them have outstanding programmes that encourage our guests to conserve electricity as best they can,” he said.

However, he said, this was not enough, because hotels use large amounts of electricity to maintain security and lighting in their various facilities.

“That is a key requirement,” Mr Todd said.

He said many BHA members were looking for opportunities to reduce their energy expenses.

In 2020, the Pompano Beach Club moved on a plan to establish an extensive solar array covering nearly 26,000 square feet of a hillside behind the hotel, gaining planning approval for 741 solar panels.

Mr Todd said the Government has never before given hotels help with electricity.

“We recognise there are challenges in that area,” he said. “There is revenue the Bermuda Government receives in the importation of fuel by Belco, but we need to see how electricity costs can be brought down.”

In the 2023-24 Budget, hotels and restaurants with an annual payroll of $350,000 or more saw their payroll tax rate moved from 6 per cent to 5 per cent, reducing tax liability by 17 per cent.

Mr Todd said this year, in a “small submission” to government, the BHA also asked for further tax concessions when it came to payroll and land tax.

“We are still in the post-pandemic recovery phase,” he said.

He said the Government was very supportive during the pandemic, giving hotels a number of concessions.

The hospitality industry was hit hard across the board when travel stopped during the global crisis.

“You will recall that several thousand people were unemployed,” he said. “Government provided various forms to assist, not the least of which was the unemployment benefit.”

David Burt, the Premier and Minister of Finance, has promised that the 2024-25 Budget will prioritise economic growth and outline the Government’s plans to sustain economic recovery.