Junior Finance Minister Extends Duty Relief for Bermuda’s Hotels and Restaurants
Junior Finance Minister, Jache Adams
Government Seeks to Remain Competitive in Tourism Industry
The Bermuda government has defended its decision to extend the duty relief for capital investments to restaurants and hotels to improve their facilities until 2029, stating that it would help the British Overseas Territory remain competitive.
Duty Relief Extended for Hotels and Restaurants
Parliament approved the Restaurants (Temporary Customs Duty Relief) Amendment Act 2024 and the Hotels (Temporary Customs Duty Relief) Amendment Act 2024 last Friday. According to Junior Finance Minister Jache Adams, the relief was last extended in 2019 and formally expired on March 31.
Benefits to the Tourism Industry
Adams stressed that a vibrant and exciting hotel sector is essential to providing a first-class experience for visitors. He further stated that most hoteliers are committed to upgrading their facilities to the highest standards possible, and those which have already reached world-class status are determined to maintain that achievement.
Legislation and Tax Relief
The legislation will come into effect retroactively effective April 1, with the relief to now end on March 31, 2029. Hotels have claimed a combined total of US$8.8 million in customs duty relief in the past five years, while restaurants have made claims totaling US $2.5 million. It is worth noting that the relief is separate from that offered in the Tourism Investment Act, which provided hotels with relief on payroll and land taxes.
Conclusion
The extension of the duty relief for hotels and restaurants is expected to remain competitive in the tourism industry. The government’s actions aim to provide a sustainable and high-quality experience for visitors, while also assisting local businesses in upgrading their facilities.
Frequently Asked Questions
* What was the purpose of extending duty relief for hotels and restaurants?
+ To keep Bermuda competitive in the tourism industry.
* When does the relief come into effect?
+ Retroactively effective April 1.
* How much has hotels claimed in customs duty relief in the past five years?
+ US$8.8 million.