Grotto Bay will get tax concessions of $500,000 on its new renovation programme after MPs passed legislation in the House of Assembly yesterday.

The Hotels Concession (Grotto Bay Beach Resort) Order is the 14th order giving tax breaks to a hotel since the Hotel Concessions Act was passed ten years ago.

Premier and Tourism Minister Ewart Brown, who presented the document yesterday, said the Island's overall tourism product benefits from encouraging hoteliers to reinvest in their property through development.

Dr. Brown said Grotto Bay is undertaking a $7 million project involving modernisation of guest rooms, exterior facilities and energy management system.

He told the House: "Although it is enormously costly for the resort to maintain its quality product offering, the resort is committed to continuous capital investment to remain a viable enterprise, deliver the services and facilities today's guests expect, grow its business and remain a source of employment for 136 members of its team, including 100 Bermudians.

"This order provides for concessions in the amount of $509,855, which is calculated on the projected value of the development project of over $7m.

"While the economic downturn certainly took its toll on Bermuda, some areas of our tourism industry are starting to see signs of rebound.

"During this important transitional year, this Government remains committed to partnering with stakeholders to develop the tourism product and assist with the expensive struggle of maintaining an infrastructure that is required to give Bermuda a competitive edge among vacation destinations."

United Bermuda Party Leader Kim Swan, who said his party supports the order, was one of a number of politicians to praise the hotel's contribution over the years, including Wayne Perinchief and Randy Horton of the Progressive Labour Party and Independent MP Darius Tucker.