A relaxation of work permit restrictions for two hospitality job categories was driven primarily by the impending opening of the Fairmont Southampton Hotel, the Minister of Economy and Labour said today.

At a post-Budget press conference, Jason Hayward also announced immigration changes for roles in the aviation sector.

For the hospitality industry, room attendants and bartending jobs will move from the closed to the restricted job categories.

In aviation, jobs including ground agents will move to the closed job category.

Other roles, such as aviation security guards and ramp agents, will move to the restricted job category.

Mr Hayward said: “For some time now, I have engaged with various industry sectors regarding the challenge of filling certain positions.

“As is well known, Bermuda has reached a point of statistical full employment, which, with an ageing workforce and an expanding economy, is causing unavoidable labour shortages in some sectors.”

He added: “To safeguard the availability of jobs for Bermudians, employers in the hospitality and aviation sectors must monitor the number of work permit holders they hire and report to the ministry annually when employment levels reach a 50 per cent Bermudian threshold.

“All positions will be required to be advertised, to ensure that suitably qualified Bermudians are given the first opportunity.

“Additionally, the hospitality sector will be required to hold a career fair.”

The minister said that the movement of the bartending and room attendant jobs from closed to restrictive jobs — all changes will take effect on March 1 — were made following discussions with the hospitality sector.

Participants at a government-convened Hospitality Workforce Summit this month raised concern about recruitment challenges in some areas of hospitality.

A government statement said that attendees agreed to a need for targeted training, workforce stability and structured pathways to strengthen the local talent pipeline.

Mr Hayward today acknowledged the concerns raised at the summit, which involved the Bermuda Industrial Union and the Bermuda Tourism Authority.

He said industry stakeholders made a request at the forum to open up eight job categories.

“The data strongly supported two of those job categories … bartenders and room attendants,” the minister added.

Following dialogue with the union, a decision was made to ease the requisite restrictions.

Mr Hayward said the two job categories will be monitored over a yearlong period to determine impact on the local labour market.

“But the hospitality changes are primarily driven by the opening of Fairmont Southampton,” he said, adding that the hotel will require over 700 employees when it becomes fully operational.

Mr Hayward said the ministry mandated that at least 50 per cent of the hotel’s workforce must be Bermudian and that a labour memorandum of understanding to that effect is being ironed out.

He added: “As a result of that and our low unemployment rate, it means that the establishment will pull workers from all other hospitality categories. And if you do not open up those categories to expatriate labour, what you’re going to do is create shortages throughout the entire industry.”

Under the Fairmont Southampton Hotel Act 2023, the business would be entitled to a rebate on land tax paid during the period from six years after it reopens to the fifteenth anniversary of its reopening, as long as it is confirmed in writing that at least 70 per cent of the hotel’s staff are Bermudian.

Mr Hayward said the labour MOU was independent of the Fairmont Southampton Hotel Act 2023.

He said the legislation relates to thresholds the hotel must meet in order to qualify for certain tax benefits.

The minister added: “From a MOU standpoint, we‘re saying what is reasonable for the first year of operations, understanding that the domestic employees that they require will have to be pulled from other areas within the economy.”

Mr Hayward said that as part of the arrangements, the hotel planned to host international career fairs to woo Bermudians in the diaspora to return to work at the resort.

The iconic hotel, which closed its doors in 2020 during the Covid-19 pandemic, is expected to reopen in August after extensive renovations totalling about $550 million.

As regards the other six job categories put forward at the summit this month, Mr Hayward said there were challenges such as retaining people for jobs within those categories.

Last week, the Bermuda Chamber of Commerce urged the Government to form a special multi-departmental committee, that is also populated with business representatives, to address the alignment of local public policy on workforce needs and immigration efforts.

However, Mr Hayward noted that the chamber had representatives on the Labour Advisory Council and Workforce Advisory Board.

He said the chamber also had representation on a sub-committee within the board and that the body is tasked with mapping training and development within the hospitality sector.

“We do have the mechanisms in place and if they do have a topic to discuss, they can submit that as an agenda item,” he added.

In a statement today, the chamber welcomed labour market reforms outlined in the Budget by the Government this year to modernise and review the work permit process as it relates to the closed and restricted job categories.