Mr. Speaker, Honourable members will be aware of the acquisition of the former Elbow Beach property by Sardis Developments Limited, the owners of The Loren Hotel at Pink Beach.
Mr. Speaker, this acquisition has been welcomed and represents a firm signal of the confidence in Bermuda as a tourism destination.
Mr. Speaker, I wish to advise this Honourable House and the public that it is proposed to afford relief to the developers of this new hotel consistent with that which is available under the Tourism Investment Act 2017.
Mr. Speaker, the developers intend to expand the existing Loren “footprint” to now include this newly purchased site, operating one hotel product in two locations.
Mr. Speaker, Honourable Members will be familiar with the scope of that relief which includes full relief from customs duty in respect of any building materials, furnishings, fixtures and equipment which are necessary for the building, furnishing and equipping, repair, maintenance, rebuilding, refurbishment or replacement of the Resort; full exemption from hotel occupancy tax otherwise payable in respect of the Resort; full exemption from the employer’s share of the payroll tax otherwise payable in respect of persons employed by the Resort; all for 15 years in keeping with the Act as well as six years of relief from land tax.
Mr. Speaker, the proposed redevelopment is set to comprise 176 “keys” including hotel rooms, luxury villas and luxury condominiums. Honourable Members will have seen recent media coverage of the developer's early action regarding the site and the proposed demolition of the existing hotel building.
Mr. Speaker, I know that there is bipartisan support for Bermuda’s tourism growth and the action required to increase Bermuda's tourism inventory.
Thank you, Mr. Speaker.