developments, it has been claimed.

Announcing the Hotel Concessions Act 2000 on Friday, Tourism Minister David Allen said the bill would allow new resorts to be built with a residential component -- with the ability to lease apartments to holidaymakers.

In addition, the legislation allows new or existing hotels to apply for concession packages to make their businesses more attractive and profitable.

Building materials, furnishings, land tax, payroll tax, customs duty on alcohol, land licence fees and statutory charges on residential units could all be included in a package agreed by Government.

Mr. Allen heralded the bill as "an historic watershed for Bermuda's tourism and hotel industries''.

Mr. Allen said Bermuda had not seen a new major resort hotel in the last 28 years because the Island had not been seen as an investor-friendly place.

The bill allows for developments to build homes which may be leased back for at least six months of the year, on the condition that the resort has at least 40 traditional hotel bedrooms.

It also provides the Tourism Minister with the power to provide "hotel concession orders'' to new or re-invented hotels for breaks on goods and taxes -- in return for training and career enhancement for Bermudians.