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House approves $3.3m hotels tax break

Parliament has approved up to $3.3 million in tax concessions for the Fairmont Hamilton hotel.However, while Opposition Progressive Labour Party supported the measures, it also claimed that the hotel industry was not doing enough to employ Bermudian entertainers.Fairmont Hamilton, which was purchased by the Green family last year, is to undergo a $39 million renovation. The concessions to the developer are for five years, and include a full exemption from land tax up to $47,443 annually, full exemption from hotel occupancy taxes — equal to the amount spent on marketing the redevelopment up to a $529,591 annual limit, and half of monies spent on Bermudian entertainers (but not to exceed $29,500 annually).And, the developers can also claim up to $45,633 in payroll tax relief based on the money spent on training Bermudian employees.Leah Scott, the Minister without Portfolio, introduced the Hotels Concession (Fairmont Hamilton) Order 2013 to the House, as Tourism Minister Shawn Crockwell was absent.Wayne Furbert, the Shadow Tourism Minister, thanked the Green family for their faith, and confidence, in Bermuda. But, he added that the hotels were given concessions as an incentive for ensuring Bermudians are working in the industry.“I’m not sure that part of the bargain has been totally fulfilled,” he said. “Entertainers have been complaining that they are not receiving their fair share as they should.”Mr Furbert noted that the Tourism Ministry spent about $250,000 on entertainment in the hotels last year.“Where is the responsibility that the hoteliers should get behind? It should be part of their budgeting going forward,” said Mr Furbert. “I don’t believe that is being done to the fullest extent, that the majority of entertainers would love to see happen.“As the former Minister of Tourism, I can tell you it’s not happening.”Economic Development Minister Grant Gibbons reminded the House that some of the concessions were tied to spending on local entertainment. “Its very much quid pro quo,” he said.Mr Furbert also raised concern that the Fairmont hotels were requiring job applicants to take a qualifying test that many Bermudians were failing, and called upon Government to look into the issue.He rejected a suggestion that it reflected education levels.Backbencher Susan Jackson said the tests were likely personality tests to gauge suitability for the hospitality industry.And, she said, it was up to Bermudian entertainers to “step up to the plate” and “do what needs to be done to promote their entertainment skills in Bermuda.”Devonshire MP Glenn Blakeney supported Mr Furbert’s concerns, but said that the Fairmont Hamilton had a “relatively good history” with hiring local entertainers.But he questioned the industry’s commitment as a whole.“The hotel industry has been extremely slow and, in my humble opinion, disingenuous in their commitment when negotiating the concessions, and what they would reciprocate with in giving an opportunity to entertainers to perform at their establishment, if they enjoyed the benefit of the concessions. But, it never happened the way it was intended.”He said, however, that he hoped the Fairmont Hamilton would be an exception, and praised hotelier, and Tourism Board Chairman David Dodwell, for his commitment to Bermudianisation.“Some of the best hospitality experts we have in the industry today are not only Bermudian, but long serving Bermudians in the same establishment. And, if it could be done in one establishment, then what is the cookie cutter we need to replicate to ensure it could be done Island wide?”The industry had been “infiltrated with a plethora of guest workers doing some of the most menial jobs that require the least amount of skillets,” he added.“If it is true that there’s a significant number showing up late, or calling in sick on holidays, why? When at one time in this country Bermudians were held to be some of the most exemplary hospitality employees in the world? The islands to the south of us took us as the model.“So how could we have gone so wrong so fast in relative terms?”