Hotels Concession (Cambridge Beaches Hotel) Order 2001
HOTELS CONCESSION (CAMBRIDGE BEACHES HOTEL)
ORDER 2001
1989 Revision 1
BR 53/2001
HOTELS CONCESSION ACT 2000
2000: 28
HOTELS CONCESSION (CAMBRIDGE BEACHES HOTEL)
ORDER 2001
Whereas Cambridge Beaches Ltd. has by application dated 25
September 2000 applied for a hotel concessions order under section 3 of
the Hotels Concessions Act 2000 in respect of the Cambridge Beaches
Hotel redevelopment;
Whereas the Minister of Tourism, having considered the
application, is satisfied that the hotel redevelopment is in the national
economic interest of Bermuda;
The Minister of Tourism, with the agreement of the Minister of
Finance, in exercise of the powers conferred upon him by section 4 of the
Hotels Concession Act 2000, makes the following order:
Citation and commencement
1 This Order may be cited as the Hotels Concession (Cambridge
Beaches Hotel) Order 2001 and shall come into operation on such day as
the Minister may appoint by notice published in the Gazette.
Interpretation
2 In this Order—
"the Act" means the Hotels Concession Act 2000;
"hotel" means the Cambridge Beaches Hotel as developed by the
hotel redevelopment;
HOTELS CONCESSION (CAMBRIDGE BEACHES HOTEL)
ORDER 2001
2 1989 Revision
"hotel developer" means Cambridge Beaches Ltd., a company
incorporated in Bermuda;
"hotel redevelopment" means the Cambridge Beaches Hotel
redevelopment described in the hotel developer's application
submitted under section 3 of the Act;
"opening date" means the date on which the hotel redevelopment
is certified by the Minister to be complete;
"planning permission" means planning permission granted for
the hotel redevelopment under the Development and
Planning Act 1974.
Concessions
3 (1) Subject to paragraph 4, the hotel developer shall in respect
of the hotel redevelopment be entitled to the following concessions —
(a) for a period beginning with the commencement of this
Order and ending on the first anniversary of the opening
date, full relief from customs import duty otherwise
payable on the importation of building materials,
furnishings, fixtures and equipment (excluding
construction equipment) necessary for the building,
furnishing and equipping of the hotel redevelopment;
(b) for a period beginning with the opening date and ending
on the fifth anniversary of that date, an exemption of
39.00 per cent from the land tax otherwise payable in
respect of the hotel, up to an amount not exceeding
$23,000 in each year of assessment;
(c) for a period beginning with the opening date and ending
on the first anniversary of that date, an exemption of
39.00 per cent from the hotel occupancy tax otherwise
payable in respect of the hotel to an amount equal to the
sums expended by the hotel developer on marketing the
hotel redevelopment, up to an amount not exceeding
$280,000;
(d) for a period beginning with the opening date and ending
on the fifth anniversary of that date, exemption from the
employer's share of the payroll tax otherwise payable in
respect of persons employed by the hotel, of an amount
equal to 50 per cent of the sums expended by the hotel
on training Bermudian employees of the hotel, up to an
amount not exceeding $86,000 in any year; and
HOTELS CONCESSION (CAMBRIDGE BEACHES HOTEL)
ORDER 2001
1989 Revision 3
(e) for a period beginning with the opening date and ending
on the fifth anniversary of that date, relief from custom
import duty paid or otherwise payable in respect of
alcoholic beverages purchased by the hotel and sold to,
and consumed by, guests of the hotel on hotel premises,
of an amount equal to 50 per cent of the sum expended
by the hotel on entertainment provided by Bermudian
entertainers, up to an amount not exceeding $56,000 in
any year.
(2) For the purposes of subparagraph (1)(d), the employer's
share of payroll tax means that portion of payroll tax which the employer
is not entitled to deduct from an employee's wages under section 19 of
the Payroll Taxes Act 1995.
Terms and conditions
4 (1) To qualify for the exemption from customs import duty
under paragraph 3(1)(a), the hotel developer must
(a) within a period of six months (or such later time as the
Minister may approve) from the date of the grant of
planning permission, diligently proceed with its
construction;
(b) use its best endeavours to ensure that the construction
of the hotel redevelopment will be completed and the
hotel redevelopment will open on a day not later than
two years from the date of this Order, or such later date
as the Minister may approve.
(2) To qualify for relief from the hotel occupancy tax under
paragraph 3(1)(c) the hotel developer must, for the relevant period
(a) show to the satisfaction of the Minister that sums equal
to the amount of the exemption claimed have been
expended by the hotel developer on the marketing of the
hotel redevelopment;
(b) comply with guidelines on the marketing of the hotel
issued by the Minister; and
(c) provide annual audited statements of account showing
the amounts expended on such marketing.
(3) To qualify for the exemption on payroll tax under paragraph
3(1)(d) the hotel developer must, for the relevant period
HOTELS CONCESSION (CAMBRIDGE BEACHES HOTEL)
ORDER 2001
4 1989 Revision
(a) comply with guidelines on the training of Bermudian
employees issued by the Minister;
(b) satisfy the Minister that appropriate training has been
provided in accordance with the guidelines; and
(c) provide an annual audited statement of account showing
the amounts expended on such training.
(4) To qualify for the relief from customs import duty on
alcoholic beverages under paragraph 3(1)(e), the hotel developer must,
for the relevant period
(a) show to the satisfaction of the Minister that
entertainment has been provided at the hotel by
Bermudian entertainers in accordance with guidelines
issued by the Minister;
(b) provide an annual audited statement of account showing
the amounts expended on such entertainment; and
(c) comply with procedures established by the Collector of
Customs for the purpose.
(5) In this paragraph, "relevant period" means the period for
which the exemption or relief, as the case may be, is claimed.
Made this day of 2001
Minister of Tourism
