The Department of Immigration's decision to allow exempt companies to purchase tourism residential units has helped push two proposed developments forward. Kevin Petty, of Moongate Resorts, told The Royal Gazette this week that the new legislation, due to pass during this session of the House of Assembly, will help him and other developers.

Moongate Resorts has been hired to manage the construction and operation of two proposed cottage colonies on the Island.

The first project is Lantana, the 9.4-acre Somerset property, which will be turned into a 100-room hotel spread over 28 units. The second project is the five-acre Munro Beach Southampton property, which will have 26 two-bedroom units.

Both will be a mixed-use facility which means some units will be fractionals while others will fall under the condominium hotel model and other will follow the hotel residence model.

Mr. Petty believes that all three models will be covered by an amendment allowing the international business sector to acquire an interest in tourism residential units.

Finance Minister Paula Cox announced in the Budget: "A recent policy change on landholding by companies will be reflected in an amendment to the Companies Act. The first stage will permit companies to acquire an interest in residential units forming part of a tourism development.

"This amendment should provide companies that acquire such an interest to have greater security of tenure with respect to accommodation for their staff."

The news could not come at a better time Mr. Petty said. Hotel occupancy fell by eight percent last year – to 51 percent. And hotels that built fractional units did not sell as many as they had hoped due to the poor economy.

"Government has been very supportive," he said. "Cabinet has approved the Lantana plans. The Department of Planning and Permanent Secretary have been very helpful. The Department of Immigration is looking at the policies." Under the existing tourist accommodation condominium policy the Minister of Immigration must approve the form of conveyance to transfer fractionals to individuals.

People who own them cannot stay in a fractional for more than 90 days a year and no more than 30 days at a time. Hotel owners must inform the Minister if someone stays in a fractional for more than three weeks. The Royal Gazette understands that the Minister of Immigration will also be responsible for allowing exempt companies to purchase tourism condominiums. Mr. Petty said he believed the new laws would increase the sales of fractionals, which in turn would help future developers secure funding.

Clarence Holfeins, Managing Director of Moongate Resorts, said: "The new amendments are the type of thing Government are doing that will help development get off the ground. We have talked about it before and now they are doing it. It has been a big help for these two projects."

Both properties are owned by overseas companies that hired Mr. Petty's firm to manage the construction and operation of the cottage colonies.

And Mr. Petty said he is confident that they will be able to secure construction financing.