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Payroll tax break for hotels extended to eight months of year

A possible new low cost airline carrier from Atlanta and an extension of payroll tax breaks for hotel and guest house operators figure in Government’s plans to rejuvenate the tourism sector.

At a meeting between hotel operators, the Bermuda Industrial Union and Government last month, one agreement reached was to extend the 7.75 percent payroll tax level for staff from six months to eight months of the year.

That was one of the firmed up initiatives revealed as the new Parliament reconvened. Also on the horizon are new hotels, investment in the three Government-run golf courses and a possible new low-cost airline flying from Atlanta.

Premier Ewart Brown has retained the Tourism brief in his new Government and gave only slight details about what is in prospect over the coming weeks and months.

A formal announcement regarding a proposed Ritz-Carlton business hotel on the Par-la-Ville Road car park is likely to be one of the first ventures rolled out as evidence of the Dr. Brown’s drive to bring more new hotels to the Island and to upgrade existing hotels.

Following the Throne Speech, Dr. Brown said: “Within the next two weeks we are going to have specific hotel announcements.

“You know already of the memorandum of understanding that the Ritz-Carlton has signed with the Corporation of Hamilton and there are some others that you will hear about very soon.”

Having enticed JetBlue Airways to start low-cost flights to the Island earlier this year, it seems another low-cost carrier is in the pipeline. And a link between Bermuda and Atlanta, Georgia — a favoured route — seems to be online.

The Premier revealed that on Friday morning he received an e-mail from Bermuda International Airport manager Jim Howes informing him of a communication from an unspecified low-cost airline company. All he would say further was: “We are seeking a low-cost service out of Atlanta and that hasn’t stopped.”

It was Finance Minister Paula Cox who outlined the extended pay roll tax breaks for hotels and guest houses.

John Harvey, CEO of Bermuda Hotel Association, welcomed the news and said the tax breaks would be a significant help in making Bermuda’s hotels and guest houses more competitive, giving them the possibility to reduce their rates and/or retain more staff during quieter months. In the Throne Speech, a pledge was made that Government will continue to move towards the development of “destination resorts” for discerning visitors, seek new airline routes, cheaper airline tickets, an expansion of the golf and spa season and put resources into the Government’s own golf courses.