Bermuda’s struggling tourism sector will profit from a huge influx of visitors and investment from the America’s Cup.

Just hours after the Island was named as the 2017 host, the Green family announced they would be ploughing another $1 million into renovating the Fairmont Hamilton Princess to prepare the hotel for event.

The developers behind the plans to transform Morgan’s Point into a luxury hotel and marina welcomed the news.

Tourism chiefs have described the news that Bermuda will host the prestigious event as a “game changer” for the industry.

“The Fairmont Hamilton Princess has already seen a strong demand for rooms for the America’s Cup World Series next October,” Andrew Green said.

“As a result of this interest, we are pleased to increase our hotel renovations budget by $1 million so that the penthouse suites will be ready to host guests visiting for America’s Cup and beyond.”

Craig Christensen, chief executive and president of Morgan’s Point Ltd, said they were “delighted that Bermuda has been chosen as the site of the 2017 America’s Cup”.

“Hosting this prestigious racing series is a historic coup for Bermuda, and a terrific boon for the Island,” he said. “We congratulate everyone involved in mounting a successful bid, and look forward to supporting the work that will be undertaken to make this a race to remember.”

Edmund Burns, the owner’s representative of the Elbow Beach Resort, said: “We are thrilled that the America’s Cup is coming to Bermuda in 2017.

“This event provides a tremendous economic opportunity for Bermuda and all of us at Elbow Beach are very appreciative of those who worked tirelessly to secure this prestigious sailing event through a very competitive process.

“We look forward to hosting visitors who will descend upon the Island for this event.

“Congratulations Bermuda. Let’s roll.”

Thousands are expected to descend on the Island for the biggest event on the international sailing calendar.

Tourism experts expect visitor arrivals to increase significantly over the next three years, while hotel occupancy is also set to receive a huge boost.

“The America’s Cup can have huge positive consequences for Bermuda and the tourism industry,” said David Dodwell, chairman of the Bermuda Tourism Authority. “It’s difficult to talk about exact numbers at the moment but I would estimate we will see a minimum of a 10 per cent increase in arrivals from 2014 to 2017. On top of that is the huge spending that goes with it. A vast amount of work has gone into getting the America’s Cup and it has the potential to affect all areas of society, not just tourism.

“With it comes jobs, construction projects and expansion for small businesses.

“It is also fantastic PR for our tourism product, which will be seen across the globe, potentially making existing markets even stronger and attracting visitors from new markets in parts of Europe, for example.

“We are talking about high-end visitors that will boost every section of the economy and put Bermuda back on the map as a tourist destination.”

The announcement came just days after Morgan’s Point Ltd revealed that it had received an initial $5 million in financial backing for its project to build a luxury hotel on the Southampton peninsula. Hollywood star Michael Douglas also recently unveiled an $85 million redevelopment project to transform Ariel Sands into a luxury resort of 85 hotel keys located in 33 cottages and six suites.

Plans are also in the pipeline for hotel developments on the sites of the old Grand Atlantic, Sonesta Beach, Pink Beach Club and Club Med in St George’s.

“It is an extremely exciting time for the hotel industry in Bermuda and the country, generally,” said Stephen Todd, chief executive of the Bermuda Hotel Association.

“The America’s Cup allows Bermuda to be placed back on the map as a destination that provides a range of water activities, not the least of which include water sports.

“Our focus will be to ensure that our Hotel Association members position themselves to provide the high level of professional services and amenities to all visitors, in keeping with the high standards of our tourism product.

“It is going to be a challenge but I am very confident that our hotel operators will deliver.

“It is of significant importance that we have as many operators, both existing and new, that are ready to meet these needs.

“It is also going to be critical that our business partners in the construction arena help us to meet those needs.

“There will obviously be a significant increase in hotel occupancy across the board.

“The America’s Cup is also an opportunity for the smaller guest houses and everyone involved in the tourism product to benefit.”

Mr Todd added that “the America’s Cup is an excellent opportunity for Bermuda to show how quickly we can rise to the challenge”.

“We are focused on the same objective and we need to acknowledge the confidence and commitment that developers are showing in Bermuda,” he said.

“It will be all hands on deck as we try to ensure that this major sporting event is a big success.”