New tourism properties that sleep less than ten people should be exempt from hotel occupancy tax for their first three years in business, according to the Opposition.

The Progressive Labour Party, responding to a front-page story in today’s edition of The Royal Gazette, said such a move would give new businesses more money at a time when they were most likely to suffer from cash flow problems.

Our article revealed that property owners here who rent out their homes to visitors on popular letting sites such as Airbnb.com could be in breach of the Hotel (Licensing and Control) Act 1969 if they sleep six or more people, and are not licensed, and paying hotel occupancy tax.

Opposition leader Marc Bean said in a statement that the news was “disheartening, yet represents a real opportunity for reform”.

“With Bermudian job losses mounting, the Progressive Labour Party’s position is that we must examine ways to reduce red tape and create red carpet for Bermudians seeking to create economic opportunities for themselves and jobs for Bermudians,” he said.

“The current approach protects vested interests while creating barriers to Bermudians seeking to enter into the one sector that should be open to all: tourism.

“The efforts of these entrepreneurs must be supported, not hindered, as their success would mean adding much needed beds to our overall tourism inventory, diversifying our product and, perhaps most importantly, getting our people back in the business of hosting our overseas visitors.”

Mr Bean said the PLP was calling for a review of the licensing process for tourist accommodations, a three-year tax exemption for new tourism properties and for the legal term ‘hotel’ to be redefined as meaning a tourist property which sleeps ten or more people.

Shadow Tourism Minister Zane DeSilva said: “Encouraging more Bermudians to convert private homes to tourism rental accommodations is a tangible solution that would generate more foreign currency, particularly since visitors that arrive via air spend on average six times more than spent by cruise passengers.

“Encouraging more Bermudians into tourism by making it less cumbersome — ‘rolling out the red carpet to Bermudians’ — will make us less dependent on international business and lessen the need to bolster immigration numbers.

“Supporting reform that balances standards with slashing red tape will make this transition more encouraging and assistance from the Island’s banks through low interest loans would provide a much-needed boost to our economy.”

Mr DeSilva said the PLP encouraged current and future tourism property owners to respect the law as it exists today and encouraged Government to work with any owners who have run afoul of the Hotel (Licensing and Control) Act 1969 “with a view toward fixing the situation, as opposed to punishing the owners”.

“We encourage the Government to work with us on these proposals and other ideas to create more red carpet and less red tape for Bermudians seeking to create businesses for themselves and jobs for Bermudians,” he said.