Hotels Concession (Spa Resort at Lantana) Order 2004
HOTELS CONCESSION (SPA RESORT AT LANTANA) ORDER
2004
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BR 23/2004
HOTELS CONCESSION ACT 2000
2000: 28
HOTELS CONCESSION (SPA RESORT AT LANTANA) ORDER
2004
Whereas Lantana Resort Ltd. has by application dated 19
December 2002 applied for a hotels concession order under section 3 of
the Hotels Concession Act 2000 in respect of the Spa Resort at Lantana
development;
Whereas the Minister of Tourism, having considered the
application, is satisfied that the development 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
1 This Order may be cited as the Hotels Concession (Spa Resort at
Lantana) Order 2004.
Interpretation
2 In this Order—
"the Act" means the Hotels Concession Act 2000;
"hotel" means the Spa Resort at Lantana comprising the
following premises shown on the plan set out in the Schedule
HOTELS CONCESSION (SPA RESORT AT LANTANA) ORDER
2004
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(but excluding all premises within the hatched area of the
plan)-
(i) 40 Spa Suites comprising:
18 SF's (Spa Fireplace) Spa/hotel suite with fireplace ;
3 SG's (Spa Gardens) Spa/hotel suites with garden;
19 SWF's (Spa Water Front) Spa/hotel suites on
waterfront;
(ii) 4 Corporate/Wellness Units;
(iii) Spa Centre, Conference Centre, Salon and staff quarters;
(iv) Restaurant, Clubhouse and swimming pool;
(v) 7 Yacht Club Villas (Y 1-7);
(vi) 17 Beach Front Condominiums (BF 1-17);
(vii) Swimming pool;
"hotel developer" means Lantana Resort Ltd., a company
incorporated in Bermuda;
"opening date" means the date on which the hotel is certified by
the Minister to be complete;
"planning permission" means planning permission for
construction of the hotel granted under the Development and
Planning Act 1974; and
"residential unit" means a residential unit forming part of the
hotel premises which the Minister is satisfied are or will be
used for at least six months in any year to accommodate
paying guests who are not ordinarily resident in Bermuda.
Concessions
3 (1) Subject to paragraph 4, the hotel developer shall in respect
of the hotel 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;
HOTELS CONCESSION (SPA RESORT AT LANTANA) ORDER
2004
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(b) for a period beginning with the opening date and ending
on the fifth anniversary of that date, exemption from the
land tax otherwise payable in respect of the hotel, up to
an amount not exceeding $50,000 in each year of
assessment;
(c) for a period beginning with the opening date and ending
on the second anniversary of that date, an exemption of
37 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 development, up to an amount not exceeding
$300,000 in any year;
(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 $97,500 in any year;
(e) for a period beginning with the opening date and ending
on the fifth anniversary of that date, relief from customs
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 $72,500 in
any year; and
(f) reduction of one third of the licence fee otherwise
payable under section 83 of the Bermuda Immigration
and Protection Act 1956 in respect of the first disposition
of each residential unit.
(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
HOTELS CONCESSION (SPA RESORT AT LANTANA) ORDER
2004
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planning permission, diligently proceed with the
construction of the hotel;
(b) use its best endeavours to ensure that the construction
of the hotel will be completed and the hotel 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;
(b) comply with guidelines on the marketing of the hotel
issued by the Minister ; and
(c) provide an annual audited statement 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
(a) comply with guidelines on the training of Bermudian
employees of the hotel issued by the Minister;
(b) satisfy the Minister that appropriate training of
employees 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 this purpose.
(5) In this paragraph, "relevant period" means the period for
which the exemption or relief, as the case may be, is claimed.
HOTELS CONCESSION (SPA RESORT AT LANTANA) ORDER
2004
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SCHEDULE
Made this 30th day of March, 2004
Minister of Tourism
