Hotel residential units will not get concessions – government
The Government has confirmed the residential units that form part of the Fairmont Southampton development will not receive concessions afforded to the hotel.
However, condominiums placed in the hotel’s inventory may qualify for the concessions.
Questions were recently raised in Parliament by Cole Simons, the Leader of the Opposition, who claimed he was told by a former finance minister that the residential units would receive the concessions before being shut down by the Acting Speaker, Derrick Burgess.
A Ministry of Tourism and Cabinet Office spokeswoman told The Royal Gazette: “The Fairmont Southampton Hotel Act 2022 and the Fairmont Southampton Hotel Act 2023 were passed through both Houses of the legislature but have not yet come into force.
"The relief granted applies to that defined in the Fairmont Southampton Hotel Act 2023 and outlined in the survey plan attached to it.
"Any unit that is constructed for residential only, does not qualify for concessions. Any hotel condo where the rooms are placed in hotel inventory for visitors to rent may qualify for concessions."
A controversial Bill giving a string of concessions to the developers of the island’s largest hotel was passed by legislators last year.
It will give tax concessions of between $121 million and $133 million over 15 years to Fairmont Southampton owner Gencom.
It was revealed that the Government will also give a guarantee of $75 million.
Last March, Lieutenant-Colonel David Burch, the Minister of Public Works, said the hotel’s revamp was expected to cost $450 million.
The tax concessions cover customs duty, hotel occupancy tax, land tax and the employer’s portion of payroll tax.
The Fairmont Southampton Act 2023 was tabled to allow for a rebate arrangement to make sure that levies linked to the iconic hotel can be used to repay the government-guaranteed loan.