Furious tourist accommodation owners have lashed out at the Government for heaping more financial misery on them.

Small hotel and guest house proprietors are reeling from the shock of proposed land tax hikes -- which come at a time when many are desperately trying to keep their heads above water.

Some places will see rises of between 30 and 60 percent, a few much more and a number may see their rates fall, following the Government's agreement of the Land Tax Amendment Act 1999.

The bill plans increased annual rental values, pushing bills higher with the six percent flat commercial rate -- contrary to a PLP pre-election promise to review taxation with a view to providing tourism incentives.

Yesterday, Astwood Cove owner Nicky Lewin said he didn't know whether to laugh or cry at the news that he could face a possible 116 percent tax increase.

"I don't know whether they are trying to tell us something,'' he said. "We are doing the right thing for Bermuda, for ourselves and for the industry -- it seems a very odd way to be rewarded.'' Mr. Lewin, who has updated his 40-guest site and tried to boost business, said at present they are relying upon repeat trade to maintain equilibrium, whilst managing on a shoestring.

"They (the Government) are reneging on their word.'' And he added that, as with most properties, the extra cost would have to be passed onto the customer -- at a time when the Island is struggling to compete on price with other destinations -- or face going out of business.

"They (the Government) have inherited the golden egg. They don't seem to need the extra money, it seems pointless.'' Facing a 120 percent hike on her SkyTop Cottages property, co-owner Andrea Flood said she would not pass the rise onto customers, but would have to cut back in other ways.

"We want to keep prices down, but now it is the ARV, the new pensions and any new taxes this Government wants to propose. It will not be long before more hotels shut their doors.'' June and Gifford Stanton have vowed to continue for this year after their Marley Beach Cottages were whacked with a 98 percent increase -- doubling their bill.

"It is discouraging,'' said Mr. Stanton. "You wonder whether it is worth keeping going. We will keep going for a while.'' His wife added: "We have done everything we can to economise. We have made enormous sacrifices, this is very depressing.'' Both are hoping the Government will look again at the situation, and Mr.

Stanton suggested a tax break, bringing down the six percent rate to three or four percent, until the industry showed better profits.

Small resort operators lash out at tax hike They had praise for Tourism Minister David Allen and called on the rest of the PLP Cabinet to listen to him.

"The smaller properties are the backbone of the industry. They feel they don't get much consideration -- I don't think alot of people realise what a huge contribution they make,'' said Mrs. Stanton.

Sally Ann-Marshall, who runs the Paget holiday apartments Glenmar, said they had just improved many of their facilities to make them more attractive to guests, and were being rewarded with an extra cost from Government.

"We are all struggling to keep our heads above water,'' she said, "We are trying to encourage people to come to Bermuda.

"This has come at the wrong time. We need time to recoup, now we are having to pay out for something else, they are not giving us a chance.'' Albert Corday said he expected the tax bill for his Serendipity guest apartments to fall, but was looking at a $6,000 increase on his private home which adjoins the property.

He plans to appeal the rise and criticised the Government for their actions.

"I don't understand it,'' he said. "Maybe it is all these trips, and a bodyguard. It is ridiculous, they are shooting themselves in the foot.'' Mr. Corday backed the idea of relief for tourist accommodations -- to stop the ARV rises being passed onto the customer.

"What are people going to do? Prices keep going up and up.'' The PLP pre-election platform promises a review of the tax system with "a view to providing improved incentives to large and small guest properties, to assist in increasing competitiveness...'' Last night, Tourism Minister David Allen indicated some light at the end of the tunnel for hoteliers, when a Government wide tax review is completed. He said he did not want to pre-empt the findings of that review.

But he said, it was unlikely there would be any changes before the next Budget, in February 2000.

"The Minister of Finance and I are very sympathetic with the concerns of hotels,'' said Mr. Allen. "We will be doing our best to make hotels as viable as possible.

"By next year it will be a more palatable situation.'' He added that the Government had been a victim of circumstance and had had to adhere to a legal requirement to bring the Land Tax Bill to Parliament this summer.

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