A string of new regulations to encourage hotel development was applauded by senators as they passed through the Upper House yesterday.

Opposition Senate Leader Michael Dunkley said the United Bermuda Party supports the legislation — which removes land charges on hotel fractionals and condos — at a critical stage for the tourism industry. We need to do everything we can to entice investment," he told the Senate.

Sen. Dunkley said hotels such as Tucker's Point Club, The Reefs and Newstead Belmont Hills had built first class properties through the fractional method, which involves a number of owners occupying the property at different times of year.

Hotel operators have said land charges of ten to 18 percent on purchasing units meant Bermuda was pricing itself out of many investment markets, because the Island is already one of the most expensive places to build and operate hotels.

Yesterday's amended regulations remove those land charges, as well as lifting restrictions on Bermudians and exempt companies purchasing units.

Former UBP Tourism Minister David Dodwell, who owns The Reefs, has said the legislation will help Bermuda jump ahead of its competitors.

Immigration Minister David Burch presented four of the bills yesterday: the Bermuda Immigration and Protection Amendment (No. 2) Act; the Bermuda Immigration and Protection (Tourist Accommodation and Hotel Residences) Regulations; the Bermuda Immigration and Protection (Rental and Use) Amendment Regulations; and the Bermuda Immigration and Protection (Landholding Charges) Amendment Regulations; Attorney General Kim Wilson presented the fifth: the Companies Amendment (No. 2) Act.

Sen. Burch said he found much of the legislation very difficult to comprehend but added: "The ability to be able to reduce the fees to get some revenue is what gets me over the hurdle."

He said if he's still in the Cabinet in November one of the first things he'll do is repeal the Immigration and Protection Act 1956 and "replace it with something that's understandable for those responsible for trying to implement it".

Independent Senator Walwyn Hughes said beneath the "terribly complicated" new legislation there is "an advantage to the local tourism industry coming out of this".

Progressive Labour Party Senator Walton Brown, UBP Senator Jeanne Atherden and Independent Joan Dillas-Wright all spoke briefly in favour of the changes.