sprucing up their properties.

The Bermuda Chamber of Commerce also welcomed the Budget measure.

"We acknowledge attempts made to maintain levels of competitiveness,'' said Chamber president Mr. Robert Rego.

A proposal to increase the number of goods and services taxed at hotels met with a more muted response, however.

Hotel chiefs said they wanted more information before giving their verdict.

"We really need to know what items are being referred to which will now be taxed,'' said one hotelier.

The Hotel Refurbishment (Temporary Duty Relief) Act, 1991 was due to expire at the end of June -- but has now been extended until June 2000.

The legislation enables hotels to import capital goods for refurbishing their properties at a concessionary rate of five percent.

Finance Minister the Hon. David Saul said the measure proved invaluable at a time when the hoteliers experienced "a sharp contraction in their cash flow as a result of the downturn in tourism''.

"Although the tourism position is improving the financial position of some of our hotels remains weak and the industry as a whole needs the assurance of being able to plan large scale refurbishments well in advance.

"Accordingly the Act is being extended for a full five years, until 30 June 2000.'' President of the Hotel Employers of Bermuda Mr. Roger Borsink said the extension was "very good news''.

"It means we can now plan major renovations in advance which will help our financial planning.'' Bermuda Hotel Association executive officer Mr. John Harvey said: "We are very encouraged about this.

"It will give us the opportunity to concentrate on plant development. It is a step in the right direction.'' On the Hotel Occupancy Tax, Dr. Saul told MPs receipts from it were expected to be down by $500,000 or 4.2 percent.

This was for a "variety of reasons'', despite a slight increase in visitor numbers, he said.

The reductions, however, have been compensated for by additional receipts from Hospital Levy and Employment Tax, reflecting the improving economy and the increased level of employment.

Dr. Saul said it appeared hotels had over the years added a number of items to guests bills "below the line'' which had not been subject to tax.

"The Hotel Occupancy Tax will be amended to ensure that these items are subject to the tax.'' On the other hand, the rate of the tax would remain at six percent -- one of the lowest among our competitors, added Dr. Saul.

Said Mr. Borsink: "I cannot really comment on this until I know what Dr. Saul is addressing.''