Hoteliers got duty breaks to allow for cheaper hotel refurbishment and funding was made available to allow for the evolution of a new Bermuda Tourist Authority in yesterday's Budget Statement.

And the Monitor Company netted further financing help from Government while preliminary funding for a Millennium event was made available.

Meanwhile, a cruise ship tax of $8 per cabin for each night a ship is berthed in Bermuda will begin in May. The tax will apply in full between May and August and be halved to $4 in September and October. It will generally not apply at all between November and April.

Tourism Minister David Dodwell said: "I am very pleased with the continued and heightened focus on tourism in the Budget from two perspectives.

"First there is the financial commitment. The Tourism portion of the Budget is up five percent over last year to $33.2 million which is an increase of about $1.5 million.

"The other commitment is to people. There is a definite customer focus and encouragement to provide the best product we can, not just in the physical plant but also through service.'' Mr. Dodwell highlighted the announcement of the Hotel Refurbishment Amendment Act 1998 which allows new hotel developments to import items needed for their construction at a zero duty rate for a limited time.

The 1991 Hotel Refurbishment (Temporary Customs Duty Relief) Act saw Government encourage renovations by lowering the duty on capital goods utilised in upgrading existing hotel facilities to five percent.

These facilities will be able to take advantage of the zero duty rate also.

"This is terrific for not just existing hotel facilities but also new properties,'' said the Minister.

Camberley Hotel Company is looking at taking over the old Club Med site in St.

George's and is set to benefit from the legislation if the deal goes through.

The decision to cut the duty recognised the need for local hotels to become more profitable, said Mr. Dodwell.

"It allows owners to invest in hotels and upgrade their product at the new rate which will hopefully allow them to return to profitability.

"This Budget recognises the importance of investment in existing and new hotels even more now than in the past.

"This boosts the process of change. It encourages hotels to continue the upgrading process and focus on the customers' needs.'' The theme of upgrading Bermuda's product is part of the message the Monitor Group has been spreading through the community as it works to revitalise the industry.

"It has recommended specific projects to create the kinds of sophisticated visitor experiences Bermuda must deliver if it is to regain its leadership position in tourism,'' said Finance Minister Grant Gibbons while announcing the Budget for the upcoming year.

To support the implementation of these projects, Government has allocated $1 million.

Mr. Gibbons also noted "that the complex process of rebuilding Bermuda tourism has been and must continue to be, a joint effort, a partnership of Government, business, labour and the broader community''.

And an example of this is the planned creation of the Bermuda Tourist Authority which will evolve from the Tourism Department into a collaborative body with broad representation from the private sector and the community. Mr.

Dodwell said the process of establishing the BTA, hopefully by the end of the year, was underway and funding had been set aside to fund it once it was set up.

Meanwhile the Freeman Service Strategy received $487,000 which "again, focuses on service and people'', said Mr. Dodwell.

And a major Millennium event -- the Tall Ships 2000 Race -- will be aided by $67,000 set aside in the Budget to support the establishment of a Port Committee and brochure production.

In 1997, a preferential duty rate was introduced to assist tour and diving boat owners. Further assistance was given in the area of marine tourism this year with an amendment to the Government Fees Act to eliminate the boat registration fee for small recreational paddle driven boats like kayaks and pedalos that tourists favour for recreation.

Indirect efforts to help reposition Bermuda as an upscale tourist destination include spending $3.3 million on refurbishing, extending the baggage hall and installing new luggage belts at the Bermuda International Airport and spending $880,000 on Town Cut in St. George's to improve cruise ship access.

DEPARTMENT OF TOURISM SPENDING CHART HOUSE OF ASSEMBLY HOA