Bermuda’s economy will worsen unless there is “substantial reform” according to a report released today.

However the Bermuda First Report proposes that by providing residency to generous multimillionaires, decreasing taxes on fractional hotel units, waiving term limits and work permits for certain occupations and increasing government transparency, the Island could remain prosperous over the next six years.

The recommendations were just some of the 33 suggestions the Bermuda First committee unveiled minutes ago at a meeting in the Fairmont Hamilton Princess.

The 60-page report revealed that many of the 66 leaders of the commercial, non-profit and public sectors across the Island interviewed for the report said they believed Bermuda was in need of “substantive reform”.

Both Premier Ewart Brown and Opposition Leader Kim Swan signed the opening remarks of the report which stated: “We are at a crossroads... In the past decades, we have relied on growth in the insurance and reinsurance sector to drive our economy, but we cannot take continued growth in these sectors for granted. We are not enjoying the success in tourism that we once did. We now face greater competition from year-round getaways, and we have far less overnight capacity than we used to.

“Meanwhile, we continue to face difficulty creating attractive opportunities for all Bermudians, with naggingly persistent school dropout rates and far too few Bermudians who are qualified for middle-class jobs. The most recent global financial crisis and economic downturn have accentuated many of these challenges, showing cracks in Bermuda’s economic and social foundations.”

The committee believes that if its recommendations are followed, Bermuda will still be a premier international financial centre, tourism will have been reinvigorated, the economy diversified and all Bermudians will get a slice of the economic pie by 2015.

Without these changes the report stated: “More than two-thirds of the respondents thought that Bermuda’s economy would be dramatically worse or somewhat worse in five years.

“Furthermore, more than 60 percent of the survey respondents said that either “transformation” or “substantial reform” would be required for Bermuda’s economy to continue to thrive.”

Areas that need “significant improvement” were outlined as the presence of skilled workers, government responsiveness to business needs, government accountability, the education system, and public safety.

However, the Island got top marks when it comes to having a fair and predictable legal environment for businesses, attractive regulatory environment and having high-quality professional services such as lawyers and accountants.

Some of the other suggestions made by the committee were:

l Consider extending the corporate tax exemption beyond 2016

l Study whether to create a tourism authority

l Become a global centre for intellectual property

l Invest in recreational activities in Hamilton

l Attract additional high-calibre Bermudians to serve in Government.

For an in-depth look into the Bermuda First report read tomorrow’s Royal Gazette