Two hoteliers have praised Government for removing land charges on hotel fractionals and condos, making Bermuda more competitive.

Tomorrow the Senate will debate four pieces of legislation that will ease controls on fractionals and condos on hotel properties if passed.

Much of the focus, until now, has centred on the fact exempt companies will be able to purchase fractionals, with the Opposition claiming this could devastate Bermuda's local housing market.

But yesterday both David Dodwell, who owns The Reefs, and Ed Trippe, President of Tucker's Point Club, said the more progressive parts of the legislation, such as waiving Government fees on purchasing a unit, would benefit the industry.

And Mr. Dodwell noted that no person, or company, is able to buy more than two units at a property, each lasting three months. He said it is unlikely many businesses would spend hundreds of thousands of dollars to only be allowed house people on the property for half of the year.

Fractional units are owned and shared by a number of people, who get to occupy the property at different times of the year.

They exist at hotels such as The Reefs, Tucker's Point and Newstead Belmont Hills and are likely to be included in a number of potential new tourist developments, such as the luxury five-star resort proposed for Morgan's Point.

The four pieces of legislation passed in the House of Assembly in early July, the new amendments removed the ten to 18 percent land charge levied on those who purchase units on hotel property and lifted restrictions on Bermudians and exempt companies purchasing units.

"The Government should really be praised for this," Mr. Dodwell, who is a former Tourism Minister. "We have actually jumped ahead of our competitors with this legislation.

"The biggest thing is that they have waived land charges for people who elect to put it in the hotel inventory, that can reduce the price by $40,000. In today's industry, that has made us more competitive and we have already started to spread the word on it."

For people who want to keep their unit private, and not allow the hotel to use it while they are not occupying it, Government will change a 6.5 percent land tax. Mr. Dodwell said this is a good move as it will encourage people to have their units included in hotel inventory, which will create more hotel room availability.

"This is the most progressive legislation I have seen in a long time," he added. "The Government must really be commended for it.

"This is timely and much needed. It makes us competitive and I know the industry appreciates it.

"This legislation takes into account that these types of mixed use developments are very common worldwide.

"It's really a financing tool when traditional ways of lender financing are not there any more. It allows you to go out and raise money to build the hotel by selling real estate to people on the site."

Mr. Trippe said Bermuda was one of the most expensive places to build and operate hotels, and when land charges were added to that Bermuda "priced itself out of many investment markets".

He added it was important to note the legislation lifted restrictions on Bermudian owners and allows them to now invest in hotel fractional units.

The provisions allowing companies, including exempted companies to own hotel properties would provide additional markets for Bermudian hotel developers and therefore assist a struggling industry he said.