Hotels Concession (Wyndham Beach and Spa Resort) Order 2006
HOTELS CONCESSION (WYNDHAM BEACH AND SPA RESORT)
ORDER 2006
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BR 40/2006
HOTELS CONCESSION ACT 2000
2000: 28
HOTELS CONCESSION (WYNDHAM BEACH AND SPA RESORT)
ORDER 2006
Whereas Southampton Beach Resort Ltd. has by application
dated 24 June 2003 applied for a Hotel Concession Order under section
3 of the Hotels Concession Act 2000 in respect of the Wyndham Beach
and Spa Resort redevelopment;
Whereas the Minister of Tourism and Transport, having
considered the application, is satisfied that the redevelopment is in the
national economic interest of Bermuda;
The Minister of Tourism and Transport, 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:
Short title
1 This Order may be cited as the Hotels Concession (Wyndham
Beach and Spa Resort) Order 2006.
Interpretation
2 In this Order—
"Act" means the Hotels Concession Act 2000;
"hotel" means the Wyndham Beach and Spa Resort as developed
by the hotel developer;
"hotel developer" means Southampton Beach Resort Ltd., a
company incorporated in Bermuda;
HOTELS CONCESSION (WYNDHAM BEACH AND SPA RESORT)
ORDER 2006
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"hotel redevelopment" means the Wyndham Beach and Spa
Resort 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, exemption of 82 per
cent from the land tax otherwise payable in respect of
the hotel, up to an amount not exceeding $134,000 in
each year of assessment;
(c) for a period beginning with the opening date and ending
on the second anniversary of that date, exemption of
23.46 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
new capital developments of the hotel, up to an amount
not exceeding $197,900 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 100 per cent of the sums expended by the hotel
on training Bermudian employees of the hotel, up to an
amount not exceeding $119,500 in any year;
(e) for a period beginning with the opening date and ending
on the fifth anniversary of that date, exemption of 23.46
per cent from the hotel occupancy tax otherwise payable
in respect of the hotel to an amount equal to 50 percent
of the sums expended by the hotel on entertainment
HOTELS CONCESSION (WYNDHAM BEACH AND SPA RESORT)
ORDER 2006
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provided by Bermudian entertainers to an amount not
exceeding $38,550 in any year; and
(f) reduction of one third of the land licence fee otherwise
payable under section 83 of the Bermuda Immigration
and Protection Act 1956 in respect of the first disposition
of each qualifying 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 Tax 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 the
construction of the hotel redevelopment;
(b) use his 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; and
(c) comply with procedures established by the Collector of
Customs for this purpose.
(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 accounts
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 issued by the Minister;
HOTELS CONCESSION (WYNDHAM BEACH AND SPA RESORT)
ORDER 2006
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(b) satisfy the Minister that appropriate training has been
provided in accordance with the guidelines; and
(c) provide an annual audited statement of accounts
showing the amounts expended on such training.
(4) In this paragraph, "relevant period" means the period for
which the exemption is claimed.
(5) To qualify for relief from the hotel occupancy tax 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 accounts
showing the amounts expended on such entertainment.
Commencement
5 This Order shall come into operation on such day as the Minister
may appoint by Notice published in the Gazette.
Made this 2nd day of April 2006
Minister of Tourism and Transport
