The leisure industry is not in line for any of the concessions set to be handed out to the hotels.

A new law is expected to kick-start a recovery in tourism, with a raft of different tax benefits to new hotels or existing accommodations which spend millions of dollars on renovations.

But there is little chance of retailers joining in the good fortune, at least for the immediate future.

Tourism Minister David Allen said that although the new Hotels Concession Act was designed to assist the hospitality trade, there may be scope for retail in the future.

He added that any success with new hotels or rejuvenated properties was bound to stimulate the economy, bringing a trickle-down of dollars to other service providers.

"A lot of people have said `why doesn't this extend to restaurants, nightclubs or sight-seeing operations?'. All of them, a case could be made for concessions,'' he said.

"But most people should see this as a positive sign. Hotels have to be the core of any rebuilding of the industry. If they have got it, it is a first step where Government has shown it is thinking creatively in terms of incentives.'' The Hotels Concession Act was passed by the Senate last week. It will form the parent legislation for individual orders, negotiated between the Department of Tourism and developers, to come before Parliament.

Each order could include a variety of tax deferments or breaks, including Land, Hotel Occupancy, Payroll or alcohol rebates.

It will mean some tax revenue is lost or held off for up to five years, but could also stimulate new investment in the Island -- eventually bringing tax revenue that wouldn't have come without the act.

The planned new Castle Harbour hotel was the first recipient of a Hotels Concession Order.

No concessions for retailers -- for now Mr. Allen believes it offers hope to other businesses, who should start to see an increase in trade as up to 1,000 new hotel beds come on line -- filled by upscale visitors with high levels of disposable income.

"We have to do this as a gradual thing, it is a great step. Also, people have to realise when hotels get reinvented, bringing more economy activity to Bermuda, all those restaurants and sightseeing operations will benefit. Of course they would like some incentives themselves. I am sure we will be looking at that in future.'' TAXES TAX