The Government is to take steps to scale back funding for the Bermuda Tourism Authority with the aim of eventually making it self-sufficient.

The BTA was set up in 2013 under the former One Bermuda Alliance government, which planned to make it self-funding within five years.

But the quango has continued to rely on public funding. In the 2023 Budget it was given a $19 million government grant to “continue supporting the growth and development of our tourism industry“.

In this year’s Budget, public funding was cut back to $16.54 million. At the time, Owen Darrell, the Minister of Tourism, Culture and Sport, said that the budget had been reduced to “redirect” some funds to other tourism-related initiatives, including increased grants to supplement local curators of tourism experiences, and assistance with the operation of Makerspaces for artists and creatives.

Delivering the Throne Speech yesterday, Rena Lalgie, the Governor, said “the time has come to ... devise the means and method by which taxpayer funding for this independent entity is reduced and eventually eliminated”.

Ms Lalgie did not provide details of how and when funding will be withdrawn or how the BTA will be funded in the future, although at present it does have other sources of revenue, including a $16 per passenger cruise ship tax, and a 4.5 per cent tax on room rates paid by air visitors.

Ms Lalgie said: “The journey will include fulsome public consultation on a commissioned report, informed by stakeholder review and specific working groups.”

The Government also plans to provide incentives to private sector firms looking to invest in medical tourism and adventure tourism, and has pledged to ensure that entrepreneurs “have easier access to concessions, which is vital to drive local investment in tourism attractions”.

Ms Lalgie said: “The Tourism Investment Act 2017 will be amended to expand the categories of development which attract incentives to include health and medical tourism, and attractions in the adventure tourism category.

“The process for applications for tourism attractions will be streamlined to reduce the complexity of the application process.”

Medical tourism was one of a series of initiatives included in the Government’s 2021 Economic Recovery Plan, but there has been little progress on the proposal since then.

In February last year, David Burt, the Premier, announced that foreign investors had shown interest in developing a “world-class” clinic catering to patients from overseas, and said that a further announcement was expected by the end of that year.

However, questioned about the plan in March this year, Mr Burt would only say: “Work continues. Here’s the most important point. It is not something that is going to be funded by the Government.

“I think everyone wants the Government to answer for what the private sector is doing, but the private sector is the one.

“We do not want everything funded by government. Government can’t be the answer to all things for all people.”

Responding to the announcement of BTA budget cuts, the Chamber of Commerce said that the Government needed to explain how the cash shortfall will be made up

A chamber spokesman said: “The Government grants currently contribute two thirds of the BTA’s revenue in 2022 — compared to 55 per cent pre-Covid. Clarity is needed on how to realistically bridge this funding gap.

“What specific outputs and service levels are expected as part of the BTA’s strategic plan, given the importance of tourism and tourism marketing with Southampton Princess potentially coming on line in 18 months?”

The BTA was asked to give a reaction to the tourism initiatives contained in the Throne Speech. No response was received by press time.