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BERMUDA

TOURISM INVESTMENT (ST. GEORGE’S CLUB) ORDER 2020

BR 87 / 2020

WHEREAS the hotel developer has submitted an application dated 6 April 2020 for a tourism investment order under section 3 of the Tourism Investment Act 2017 in respect of the redevelopment of the St. George’s Club; AND WHEREAS the Minister responsible for tourism, having considered the application, is satisfied that the hotel redevelopment is in the national economic interest of Bermuda; NOW THEREFORE the Minister responsible for tourism, with the written agreement of the Minister of Finance, in exercise of the power conferred by section 5 of the Tourism Investment Act 2017, makes the following Order:

Citation

1 This Order may be cited as the Tourism Investment (St. George’s Club) Order 2020.

Interpretation

2 In this Order— “customs duty” means the duty payable under the Customs Tariff Act 1970; “hotel” means the St. George’s Club, as redeveloped by the hotel developer; “hotel developer” means Hotelco Bermuda SGC Ltd., a company incorporated in Bermuda on 5 February 2020; “hotel occupancy tax” has the meaning assigned by Part V of the Miscellaneous Taxes Act 1976; “hotel redevelopment” means the St. George’s Club redevelopment described in the hotel developer’s application submitted under section 3 of the Tourism Investment Act 2017;

TOURISM INVESTMENT (ST. GEORGE’S CLUB) ORDER 2020

“land tax” means the tax payable under the Land Valuation and Tax Act 1967; “opening date” means the date on which the redevelopment, as provided in the hotel developer’s application, is certified in writing by the Minister as complete; “payroll tax” has the meaning assigned by the Payroll Tax Act 1995.

3. Relief

(1) Subject to paragraph 4, the hotel developer shall in respect of the hotel be entitled to the following relief—

(a) full relief from customs duty for a period not exceeding 10 years from the date of commencement of this Order in respect of any building materials, furnishings, fixtures and equipment which are necessary for the building, furnishing and equipping of the hotel;

(b) for a period beginning with the opening date and ending with the tenth anniversary of that date, full exemption from hotel occupancy tax otherwise payable in respect of the hotel;

(c) for a period beginning with the sixth anniversary of the opening date and ending on the tenth anniversary of the opening date, full exemption from land tax otherwise payable in respect of the hotel;

(d) for a period beginning with the opening date and ending with the tenth anniversary of that date, exemption from the employer’s share of payroll tax otherwise payable in respect of persons employed by the hotel.

(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 earnings under section 19 of the Payroll Tax Act 1995.

4. Terms and Conditions

(1) To qualify for the exemption of land tax under paragraph 3(1)(c), the hotel developer shall, for the relevant period, confirm in writing to the Minister that in years six through ten, 70% of the hotel’s staff are Bermudian.

(2) To qualify for the exemption from the employer’s share of the payroll tax under paragraph 3(1)(d), the Minister responsible for workforce development shall, for the relevant period, confirm in writing to the Minister, annually, that a management training programme for Bermudians is in operation at the hotel.

(3) In this paragraph, “relevant period” means the period for which the exemption is claimed.

TOURISM INVESTMENT (ST. GEORGE’S CLUB) ORDER 2020

Made this 6th day of August 2020

Premier

[Operative Date: 07 August 2020]