Government is not happy with the speed hotels are being built and wants to ensure developers don't simply build condominiums on these sites, Tourism Minister Renee Webb said yesterday.

She said Government wanted to tighten up deals with developers who were given tax breaks under the Hotel Concessions Act to build hotels.

Developers are increasingly selling houses and condominiums to finance the building or rebuilding of hotels.

But Ms Webb said yesterday there was a danger developers would simply build houses on the site and not provide the hotels.

Concessions have been given to developers to demolish the former Marriott Castle Harbour to build homes and a hotel at Tucker's Point Club, and for the former Palmetto Gardens Hotel to be knocked down for condominiums and a hotel.

Tucker's Point has built a number of luxury residential units but has not completed building the new hotel.

Businessman Jeff Amaral has completed building a condo development at the former Palmetto Gardens Hotel site in Flatts but has not started building the promised hotel.

In February, Mr. Amaral - who was given permission to demolish Palmetto Gardens and build condos only if he also built a hotel on the site - told The Royal Gazette he would definitely construct a hotel but he didn't have the financing completed yet. He could not be contacted for comment yesterday.

Last night Tucker's Point Club President Ed Trippe said his company was still forging ahead with the hotel on the site.

Ms Webb said yesterday: "It needs to be tightened up. If Government allows a hotel to be built and they need condominiums to raise finance because they say it is difficult to raise finance in the current equity market, they can get support.

"It seems to me we are in danger of allowing developers to build condominiums at the expense of the hotels, and it is the hotels we want.

"We are into the development of hotels, not condominiums. While we have no problems with a finance package that includes condominiums, what we are very strong about is hotel beds.

"What we have had were memorandums of understanding and sometimes they are a moving target in terms of when the hotel will be built.

"People need to be held much more accountable moving forward. You can't build on trust, and memorandums of understanding are just that. We need to move to the next level of contractual agreements.

"The Hotel Concessions Act is definitely working and we have increased and improved the hotel product, but what we don't want to happen is for developers who see an opportunity to make money from condominiums at the expense of the hotel.

"We need housing, but more importantly from a tourism point of view, we need hotel beds.

"We are not satisfied at the pace of the hotel building and we are looking at ways of improving that.

"We are not satisfied at the way hotels are being built, particularly those granted concessions for the hotel.

"At Tucker's Point, the hotel is not there yet, although the steel has gone up, and at Palmetto Gardens, it is a moving target.

"Developers may want to take advantage of the potential profit of building condominiums and if they put it into the hotel yes, but if they are taking the profits out it is not working.

"I can't say it is the case so far. When they say this is the date they want the hotel to be built, that date needs to be moved up. They all have times, but they are a moving target.

"Tucker's Point has the frame up for the hotel, but with respect to Palmetto Gardens, that is a different scenario.

"But they are committed to doing it, but we don't want our efforts to increase hotel beds to be frustrated by lack of activity.

"I can understand part of a development might need condominiums to finance it, but we are not willing to be hoodwinked by developers looking to build condominiums but end up not building a hotel."

Tucker's Point Club President Ed Trippe said yesterday: "Tucker's Point Club continues to be completely committed to the development of its hotel.

"Demolition and design work are ongoing as are negotiations with government. The development of our hotel is supported by government and through the continued success of our real estate sales."