MPs passed an order last night to give the Fairmont Hamilton Princess more than a million dollars worth of concessions.

The Hotel Concession (The Fairmont Hamilton Princess Hotel) Order 2008 is a result of the hotel's recent facelift, including renovations to the Bay Wing, now called Bermudiana House.

The Order states Tourism Minister and Premier, Ewart Brown, reviewed the application and was "satisfied that the hotel redevelopment is a substantial redevelopment and is in the national economic interest of Bermuda".

Education Minister El James outlined the Order to MPs yesterday in the Premier's absence.

He said: "Members will be reminded the aim of the Hotel Concessions Act 2000 is to give tax relief to hotels which reinvest in their property through development. The Fairmont Hamilton Princess hotel has enjoyed international acclaim since it opened in 1884.

"With the current downturn this commitment is critical and in line with this Government's strategy to sustain Bermuda's tourism infrastructure."

Opposition Leader Kim Swan said although only "a small amount" was allocated in terms of concessions for Bermudian entertainers ($29,500 a year exemption from hotel occupancy tax, for three years), the relief given for training Bermudian employees was "more encouraging".

"A much more considerable amount has been put forward for training, which is much more encouraging. Over a quarter of a million dollars in concessions has been put forward for training Bermudians and I think that bodes well," said Mr. Swan.

"We are pleased to support the Concession Order."

Government MP and backbencher Randolph Horton said: "It is important that in this day we have qualified and capable Bermudians to carry out the responsibilities, whether in hotels or restaurants, or in any of our industries."

Mr. Horton said: "This is a positive Bill and shows very much the continued collaboration and partnership which is taking place between the hotels in Bermuda and Government."

Shadow Education Minister Grant Gibbons said: "We certainly have no objections to this Concession Order. I do however have a couple of questions.

"How many of these Concession Orders have actually resulted in the hotels getting any payback on the Concession Order.

"My understanding is very few have resulted in the hotels getting money back. I'm interested in how many of the more recent ones, which include payroll and land tax and marketing, have resulted in paying off."

Mr. James said: "The Tourism Department is working very closely with us here and they are making sure not only are they being paid off but the training and entertainment is as well."

As well as the concession for employing Bermudian entertainers, other concessions in the Order are: a three year partial exemption from land tax of up to $15,000; a year's exemption from hotel occupancy tax for marketing costs, reaching up to $289,000 a year; a three year partial exemption from employer's payroll tax, for training Bermudian employees, of up to $266,500 annually.