Two of Bermuda's biggest hotels could be the first applicants for a new Government aid scheme as they launch multi-million dollar improvement programmes.

Elbow Beach, which has already spent more than $100 million on its Paget property, and the Fairmont Southampton Princess are both moving ahead with plans to enhance their resorts.

At Elbow, the plans include a new spa, ballroom, additional guest rooms and a waste water treatment plant.

The Southampton Princess' development plans start with a new spa and health facility and renovations to the mezzanine floor.

Both hotels have now formally lodged their schemes with the Department of Planning for consideration.

It is likely they will be two of the first applicants for assistance under the Hotels Concession Act 2000, which passed the House of Assembly last week and is awaiting debate in the Senate.

If it becomes law, the hotels could apply for full or partial relief on the work, including customs duty on building materials and equipment, land tax, hotel occupancy tax and payroll tax.

In addition, there is the possibility of relief on alcohol sold to tourists and land licence fees -- for a period of up to five years.

Work at the Southampton Princess is part of a larger improvement programme covering many areas of the hotel.

Initially it plans to revamp the pool area and create a new health club along with a global trend toward creating top class spa facilities.

Further down the line, the Fairmont group intends to create "Entree Gold'', a five star zone in the property where discriminating guests are treated to their own special standard of service.

There are also plans to rebuild the wrecked Dolphin Quest marine centre and enlarge the beach area.

The latest addition to Elbow Beach comes after ten years of renovations and upgrading, since it was purchased by Saudi Prince Khalid Bin Sultan in 1990.

Over the years the improvements have included all parts of the hotel, with the lobby, pools, guest rooms and gardens undergoing a "make over'' and a new conference centre was also built.

More than $40 million has been poured into the resort and now even more will be invested.

The new spa will replace the existing facility in the main hotel and a "multi-use'' function room will be added -- and four new suites will be built.

The work is expected to take place in the off-season.