Fairmont Southampton Hotel Act 2023

What this bill does

This bill gives the Fairmont Southampton Hotel major tax breaks and customs duty relief to help pay for renovating the property. The hotel developer would get these benefits for 15 years after the hotel reopens, but must meet certain conditions like hiring at least 70% Bermudian staff and running management training programs for locals.

If passed (voted YES)

• The hotel developer gets full rebates on customs duties for building materials, hotel occupancy tax, land tax (after 6 years), and employer payroll tax for 15 years
• The hotel redevelopment project moves forward with significant government financial incentives, potentially creating jobs and boosting tourism
• Bermudians benefit through required local hiring quotas and management training programs at the renovated hotel

If rejected (voted NO)

• The hotel developer must pay all taxes and customs duties at full rates with no government rebates
• The redevelopment project may proceed without government incentives, or potentially be delayed or scaled back
• No guaranteed employment quotas or training programs for Bermudians would be required

Who it affects

This primarily affects Westend Properties Limited (the hotel developer) and current/future hotel employees. It also impacts Bermuda's tourism industry and taxpayers, since the government would be giving up tax revenue in exchange for potential economic benefits from the hotel's redevelopment.