Hotels will be able to cut huge costs off their bills after a new Act giving customs duty relief was passed with the support of both Parties in the House of Assembly.

Finance Minister Grant Gibbons introduced the Hotels Refurbishment (Temporary Customs Duty Relief) Amendment Act 1997.

It broadens the area where hotels can claim customs relief to building new rooms and facilities. In the past it related to items such as furnishings for refurbishment of rooms.

Dr. Gibbons said: "This is a small piece of legislation but a very important one.

"It is clear that the Government recognises the critical role that the tourism industry plays in Bermuda's economy.'' He said the Act was one part of a broader package introduced in the Budget which was designed to help tourism.

The original Act was passed in 1991 to encourage investment in the hotel industry and the total value of items approved since then was $36 million with duty relief amounting to $6.4 million.

"This particular Act has been used by a very broad spectrum of hotel properties,'' said Dr. Gibbons.

"This Act will allow the construction of new rooms and facilities to qualify for duty relief as long as they are part of existing complexes,'' added the Minister.

Shadow Finance Minister Eugene Cox said: "On the whole we have supported the rebates in the past and we are not deviating from that at this time.'' However PLP backbencher Walter Roberts said: "If we are going to encourage the building of new hotels we should consider a rebate on new hotels.'' Shadow Tourism Minister David Allen added: "I hope the hotels will hear loud and clear what we are saying and I hope some of these concessions will be used to enhance their entertainment facilities.

"I hope the hotels will be imaginative in how they use this legislation.'' And Tourism Minister David Dodwell said: "This legislation is to encourage reinvestment in the hotels.

"Because of the very large losses that the hotel industry has incurred this helps to minimise those losses and hopefully the money saved on the duty relief will be spent in other areas.''