Fairmont Southampton Hotel Act 2022

What this bill does

This bill gives special tax breaks and customs duty relief to help redevelop the Fairmont Southampton Hotel. The government would waive various taxes for up to 15 years to encourage the hotel owner (Westend Properties Limited) to renovate and upgrade the property.

If passed (voted YES)

• The hotel developer gets 15 years without paying customs duty on building materials and equipment needed for renovation
• The hotel operates without paying hotel occupancy tax, land tax (after year 6), and employer payroll tax for 15 years after reopening
• The developer must employ at least 70% Bermudians in years 6-15 and run management training programs for Bermudians to keep some tax breaks

If rejected (voted NO)

• The Fairmont Southampton redevelopment would proceed without these special tax incentives
• The hotel developer would pay normal customs duties and taxes like any other business
• The project might be less financially attractive to the developer or take longer to complete

Who it affects

This primarily affects tourists (through potential hotel improvements), Bermudian hospitality workers (through job requirements and training programs), and taxpayers generally (through foregone tax revenue). Local residents may also be impacted by construction activity and changes to this major tourism property.