Hotels across the Island began charging guests a 2.25 percent charge this month to raise money for a tourism "mega fund."

This new charge comes in addition to the existing 7.25 percent occupancy tax already paid by hotel guests.

Premier Ewart Brown announced this week that the policy came into effect on October 1, with the funds raised to go towards a tourism 'mega fund' announced by Finance Minister Paula Cox in the 2010 Budget.

The fund, managed through the Bermuda Alliance for Tourism (BAT), is intended to finance collaborative efforts between the public and private sector, complementing the Tourism marketing budget.

Dr. Brown said that the money raised through the 2.25 percent charge will be matched by the Department of Tourism.

"Now, Bermuda Hotel Association members are in a position to make significant financial as well as intellectual contributions to capture and capitalise on various collective marketing programmes," said Dr. Brown. "This is a very creative joint partnership and bodes well for the future."

Tourism director Billy Griffith and BHA Chairman JP Martins currently stand as co-chairs of BAT.