Foreigners and Bermudians will now be allowed to live year round in Tucker's Point hotel villas.

Minister Zane DeSilva told the House of Assembly that Government had redesignated portions of the hotel's property as a "matter of urgency".

Previously the luxury hotel offered full ownership villas, as well as fractional ownership, but people were only allowed to stay in the property for 90 days each year.

However, yesterday Mr DeSilva said the 65 villas have been redesignated. Originally they fell under the category of tourist accommodations but are now in the new classification of hotel residences.

"The significance of the current definition and the designation of a property as an eligible hotel residence is that those restricted persons who invest in such properties are now able to reside in them all year round rather than being limited to the current maximum 90 days," he said.

"The Tucker's Point properties were redesignated as a matter of urgency with the hope that the redesignation would promote further significant investment in the development and thereby both assist the developers and boost tourism in Bermuda.

"It is anticipated that other hotel properties will seek this provision and those will be the subject of individual parliamentary scrutiny."

John Bush, executive vice president of residential development at Tucker's Point, said 11 of the 65 full ownership villas are still available for sale.

"We have had clients who do not want to close the deal because they do not see it as a good investment if they are only allowed to stay for 90 days," he said. "The villas are for sale for $3 to $4 million so it is a big investment. Many of the clients use them as a vacation home but are also looking long-term and plan on retiring here or spending several months a year in Bermuda.

"The people who purchase these villas are obviously very affluent and put a lot of money back into the Bermuda economy. They dine out frequently, they shop."

Mr Bush said Government responded quickly when the hotel told them about the concerns.

"The time limit was turning off the spigot of non-Bermudian investment in Bermuda's tourism properties. Government saw that as well when we brought it up and they have been very cooperative.

"The proposed legislation has been welcomed not only by us but by the industry as a whole."

In addition to the 11 villas still to be sold, Mr Bush said there are 50 fractionals available for sale. In total there are 340 fractional units on the property.

The amendment is the latest incentive from Government to entice more tourists to invest in fractional or full ownership hotel properties.

Earlier this year Government passed legislation allowing buyers to own cars. Major tax breaks were also recently granted to those purchasing the units.

Government significantly lowered, or waived, land charges of ten to 18 percent on the tourist accommodations and hotel residences. Owners who allow their property to be used by the hotel when they are not there will now pay no land tax. Those who do not will only have to pay a 6.5 percent tax on the purchase of their home.

Yesterday, Mr Bush said currently none of the owners of the villas had chosen to allow their homes to be used by the hotel. He said he believed that would change with the influence of the new international operators Rosewood and as the hotel grew more popular.