Tax breaks for hotels, restaurants and cruise passengers were given the green light by the House of Assembly yesterday.

The Miscellaneous Taxes Amendment Act will see departing passenger tax and passenger cabin tax axed for cruise ships visiting Hamilton and St. George.

Premier and Minister of Transport Ewart Brown said it was hoped this would make it more attractive for smaller cruise ships and niche market ships to visit the city harbours. Increasing numbers of ships have chosen to visit Dockyard since a decision in 2007 by cruise lines to retire the smaller liners capable of visiting St. George and Hamilton.

Dockyard is the only port that can accommodate the new generation vessels, with a new pier due to open in May. Currently there is a $20 tax for every departing passenger from April 1 through to October 31. Passenger cabin taxes (per cabin per night) stand at $14 from May 1 to August 31 and $10 from September 1 to October 31.

These will be scrapped under the new amendment. Dr. Brown said the proposal was one of the features that attracted the Holland and America cruise line to schedule visits to Hamilton and St. George throughout 2010 and 2011.

Minister of Finance Paula Cox announced the Hotels (Temporary Customs Duty Relief) Amendment Act 2009.

This extends the offer of zero customs duty on goods imported for the renovation and refurbishment of hotels from May 31 2009 through to May 31 2014. The tax relief has been in place since 1991.

A tax break granted for goods brought in to renovate and refurbish restaurants in the Restaurants (Temporary Customs Duty Relief) Amendment Act was also approved by the House last night. Ms Cox said: "This is an item which is a 'feel good' measure and we are pleased that we can do it." She hoped the tax breaks would help "ease the pain" of the economic downturn.

Shadow Finance Minister E.T (Bob) Richards welcomed the moves to assist the industries, describing the hotel trade in particular as "beleaguered but essential" to Bermuda.

He bemoaned the fact that restaurants on Bermudiana Road where he works in the heart of Hamilton dubbed "restaurant row" are now emptier at lunchtimes when they used to be packed with business people. All three amendment bills were approved without objection from the Opposition. They are due for a third and final reading over the coming weeks in the House of Assembly before heading to the Senate for final approval.