Tax concessions have been granted to the Coral Beach and Tennis Club as they begin a $14 million renovation project.

According to Shawn Crockwell, the Minister of Tourism, who tabled the proposed concessions, the redevelopments will not only improve the 26-acre Paget site but create jobs for Bermudians.

In addition to construction jobs associated with the five-year, five-phase project, Mr Crockwell said that the club hopes to create 48 new jobs for Bermudians and offer training opportunities. The tabled concessions would affect only the first phase of the project, which would include technical upgrades, expansion of the food and beverage facilities and upgrade some rooms, and would not exceed $900,000 over two years.

“This commitment is important because it is consistent with creating an environment that will encourage, promote and attract investments in new hotel developments,” he said. “In addition, it is critical and in line with this government’s strategy to develop the tourism product and assist with defraying the exorbitant costs of maintaining such an infrastructure.”

Jamahl Simmons, the Shadow Minister of Tourism, said the PLP supported the concessions to stimulate investment and redevelopment, adding that he was pleased to see the commitment to training and hiring Bermudians.

“We recognise on this side that concessions are a necessary evil,” he said. “Bermuda is a very expensive jurisdiction to do business in and we have a lot of structural impediments that make it a bit challenging for investors to really dig in here.

“I think the key part of it is that the concessions were driven by the need to keep Bermudians at the forefront in terms of opportunity, training, development and advancement.

“I am encouraged by the words that Bermudians will be taking up the bulk of employees, both presently and in terms of the jobs that will be created by this new development.”

The Hotel Concessions (Coral Beach and Tennis Club) Order was also passed by senators yesterday.

Diallo Rabain, the Opposition Leader in the Senate, acknowledged that concessions were a “necessary part of encourage entities to develop and improve their properties”.

Michael Fahy, the Minister of Home Affairs, said the orders were designed to stimulate growth and an “economic opportunity”.