Hospitality developers and investors will be able to apply for longer concessions with the passing of the Tourism Investment Amendment Act 2023.

The Bill, which was not supported by some members of the Opposition in part owing to lack of details on how the concession periods were calculated, sets up a framework for tourism investment concession orders for hotels, restaurants and tourism attractions to be brought to Parliament and voted on.

Vance Campbell, the tourism minister, said the Tourism Investment Act 2017 will be amended to permit the tourism minister to grant relief to developers of, or investors in, new or refurbished hotels, new or existing restaurants, and attractions.

Concessions for new hotels will be extended from ten years to 15 years, a refurbished hotel from five years up to 15 years, a new restaurant from three years up to five years, an existing restaurant from one year up to three years and an attraction from three years up to five years.

The Tourism Investment Amendment Act also repeals provisions for developers to maintain full and proper records of the goods to which customs duty has been applied.

Further, the Act will permit the minister, upon the receipt of an application for a new or refurbished hotel, to consider the planned estimate costs of the proposed development plus the combined value of investment not exceeding seven years before such an application is made.

Mr Campbell said: “Tourism is a key driver of economic growth and development for Bermuda and the Government’s aim is to remain oriented towards continuously enhancing the framework for sustainable tourism investment.”

For a new hotel, relief from customs duty will be extended to 15 years from its opening date compared to the current ten years. Exemption from hotel occupancy tax will be for a period of 15 years compared to ten years and exemption from the employer’s share of payroll tax will be for a period of 15 years compared to ten.

There will be an exemption from land tax for a new hotel starting six years after its opening date. This is subject to the hotel verifying in writing to the minister in years six through to 15, compared to ten at present, that 70 per cent of the hotel’s staff are Bermudian.

For refurbished hotels, it increases the period of relief from customs duty to 15 years from five, commencing from the start of the tourism investment order and increases the period of exemption from hotel occupancy tax from five years to 15 years starting from the hotel’s opening date.

It increases the period of exemption from the employer’s share of payroll tax from ten years to 15 years starting from the hotel’s opening date.

The legislation increases the period of relief from customs duty for a new restaurant from three years to five years. It increases the period of exemption from the employer’s portion of payroll tax from three years to five years staring from the restaurant’s opening date.

For an existing restaurant, it extends the period of relief from customs duty from one to three years.

For an attraction, it increases the period of relief from customs duty from three years to five.

Craig Cannonier, the Shadow Minister of Public Works and Tourism, said that without the public being informed on how the concession periods were calculated, he did not support the Bill.

“I hope that we get more clarity because the public of Bermuda need clarity on this matter,” Mr Cannonier said.

“I would like to hear more on the formula behind assessing and getting to these concessions.

“I’m not supporting this, it doesn’t make any sense — where is the analysis?”

Cole Simons, the Opposition leader, said: “We in the Opposition understand the need for concessions … The challenge is we are so anxious to please that we as a country are bearing the brunt of a lot of these projects …

“We will be handing out more concessions, and we can easily have concessions arriving at half a billion dollars. Can the people of this country afford it? Can the Government afford it?

“We take the view that given the current economic environment that we find ourselves under, the concessions are far too generous. We are giving far too much away and are not examining the details of the concessions we are giving.”

He said the existing structure is adequate until the economy improves.

David Burt said the debate was one of the most disingenuous he had heard coming from the Opposition, calling it “pure politics”.

The Premier said the master development agreement with the St Regis provided an avenue for 20 years of concessions for that hotel under the One Bermuda Alliance.

Speaking of the proposed amendments before the House, Mr Burt said it was now on the record that “this party [the Progressive Labour Party] supported it and that party [the OBA] opposed it”.

Wayne Caines, PLP MP, said: “This is an example of us investing in the future of hotel development.”

Zane DeSilva, PLP MP, said that most of the criticism from the Opposition revolved around the 15-year concessions being given.

He said: “Construction in the Caribbean is booming because they are giving concessions that are very similar to, if not more than, what we are giving today.”

Walter Roban, the Deputy Premier, said the Opposition claims to want hotel development to happen quickly but is not prepared to support legislation that will make it happen.

“We must as a government must sit on the side of common sense,” he said.

In conclusion, Mr Campbell said he hoped no investors were listening to the debate.

He said the time that had been spent debating the Bill, close to four hours, was enough time for them to write a cheque to invest in development in another jurisdiction.