Luxury hotel could get tax breaks for another five years
A luxury hotel property could receive another five years of tax breaks.
The Loren at Pink Beach – which opened its doors in 2017 – was granted concessions for five years from its opening date through the Hotels Concession (Pink Beach Hotel) Order 2015.
But the Government tabled the Tourism Investment (The Loren at Pink Beach) Order 2021 in the House of Assembly ;ast Friday, which would extend tax relief until 2027.
The order, if approved, would give the Loren, in Smith’s, exemption from hotel occupancy tax and the employer’s share of payroll tax for five years from January next year.
But the offer came with strings attached - to qualify for the payroll tax exemption, the hotel must have a management training programme for Bermudians in operation.
The order would fall under the Tourism Investment Act 2017, which allowed hotels to apply for exemptions from payroll tax and hotel occupancy tax for up to ten years after they opened for business.
Tourism Investment Orders were created in an effort to encourage investment in the island’s tourism sector, with developers granted tax exemptions to develop or redevelop properties.
Orders or tax concessions have been granted to several hotel properties including the Hamilton Princess, Rosewood Bermuda, the Coral Beach and Tennis Club, Elbow Beach, the St George’s Club, the Bermudiana Beach Resort and the Nautilus Hotel.
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