Senators passed the Hotels Concession Act yesterday with general support from Opposition members.

And, accordind to Government Senator Calvin Smith, the Act will create an entirely new climate for hotel investment in Bermuda, said Tax breaks would encourage the struggling sector said Sen. Smith.

The bill also gives customs duty relief.

He added: "This delivers an important promise in our election platform, the tourism industry is shielding a disproportionate taxburdon. This will assist them increasing competition.'' He said it would also ensure Bermudians had in involvement in the industry. He said hotels would be given concessions on building materials and the country would be seen as an investment-friendly jurisdiction.

He said: "It will place Bermudian facilities on a level play ground with other countries.'' The bill would give tremendous power to the Minister of Tourism while retaining accountability as deals would have to be approved by a cabinet committee, said Senator Smith.

"We can do it rapidly, this Government is extremely sensitive to business needs of this community.

Sen. Smith added: "The minister can make decisions as rapidly as is possible in a democratic government.'' Hotels can get tax deferment or exemption explained Sen. Smith. "There's a wide range of choice.'' And he said concessions on alcohol would be tied in with pledges to employ Bermudian entertainers.

Opposition Senate Leader Maxwell Burgess supported the bill but said: "Concessions are not new. I don't share the view that this particular concession act is going to create atmosphere for people to go and make deals, it they want to do it they will.'' Sen. Burgess said there was $100 million of unemployed capital in the hotel industry as well as $50-60 million of underemployed capital.

He said: "You don't have to be a rocket scientist to realise that when underemployed capital exists it won't be too long before there are unemployed and underemployed people.'' Sen. Burgess took issue with the notion that the nation was missing out on lost revenue by giving tax breaks to hoteliers.

And he feared that a slow down in the construction industry meant the jobs would soon be much needed.

Further stagnation in tourism would curb airlift to and from the island said Mr. Burgess and would hit Bermudians and International businessmen used to regular flights.

But he added: "I still feel some sense of disquiet over whether the Minister is capable of putting together the type of deals we need to get this to work.'' Independent Senator Walwyn Hughes said structural problems in tourism called for "bold and sometimes painful action''.

But he expressed worries about lost tax revenue. Opposition Senator Kim Swan pointed out the Island had only one golfing resort hotel of note, the Southampton Princess with its par three, 18-hole course.

Further Senate coverage on Page 5 Concessions Act passed He also mentioned the under publicised nine hole course at Horizons.

He added: "I recognise that this is about the cash flow. We need tourism. I live tourism. But in addition to concessions we need to find a way of putting Bermudians back in tourism.

"They're the greatest asset we have,'' he continued. "It may take time. We need to get the smiles back on Bermudians' faces. And I agree you can't be apportioning blame (for the decline).'' Sen. Jeannette Cannonier (Ind) said she supported the Act but said she would like to see more, saying the industry needed a "shot of something'' to revive it.

"This is a step in the right direction, perhaps,'' she said. "If you ask tourists, they'll say they'd like to come -- but...

"Let's find out what that `but' is! I got an earful from a travel agent who has been to Bermuda on numerous occasions. He said Bermuda was one of the hardest places to sell because of the cost.'' Sen. Cannonier said it was "all well and good'' that the Island would want to attract people of a higher economic level but people from wider backgrounds were travelling more than ever.

"Hotels do need some type of relief,'' she said. "But having said that we also need to take a long hard look at what they're offering to these tourists once they come to these rebuilt and refurbished hotels Government is giving these concessions to.'' Sen. Michael Scott (PLP) called the Act a "bright and shining star'' in his Government's programme.

He said it would produce between $200 to $300 million in development, to address a "paucity of facilities and poverty of activities'' for tourists.

And Sen. Scott was especially pleased there was a training component, encouraging hotels to take on young Bermudians.

He also accused former UBP governments of having "disincentives'' in getting young Bermudians into tourism.

Senate President Alf Oughton (Ind) also applauded the Act, adding: "This will not totally revitalise tourism, but it is a start. It's a positive start.

"There are so many other attractions to young Bermudians now for a career.''