Restaurants and hotels will continue to receive duty relief for capital investments to improve their facilities until 2029.

During Friday’s sitting of the House of Assembly, parliamentarians approved the Restaurants (Temporary Customs Duty Relief) Amendment Act 2024 and the Hotels (Temporary Customs Duty Relief) Amendment Act 2024.

Jaché Adams, the Junior Minister of Finance, said that the relief was last extended in 2019 and formally expired on March 31 this year.

He said that extending the relief for an additional five years would help the island to remain competitive.

“A vibrant and exciting hotel sector is an essential component in the Government’s quest to provide a first-class experience for our island’s visitors,” he said.

“Fortunately for Bermuda, most hoteliers are committed to upgrading their facilities to the highest standards possible, and those which have already reached world-class status are determined to maintain that achievement.”

Mr Adams said the legislation would come into effect retroactively with effect from April 1, with the relief to now end on March 31, 2029.

He also said that hotels claimed a combined total of $8.8 million in customs duty relief in the past five years, while restaurants had claimed about $2.5 million.

Mr Adams said this concession was separate from that offered in the Tourism Investment Act, which offered hotels relief on payroll tax and land tax.