Government gives tax break to Cambridge Beach hotel developers – The Royal Gazette

Updated: Jul 01, 2022 9:02 PM

Cambridge Beaches

Owners of the Cambridge Beaches resort have benefited from a series of tax breaks for the next ten years, while the property undergoes major improvements.

Under an order presented to the House of Assembly this morning, Cambridge Beaches Holdings Limited will not have to pay duty on building materials, fixtures and fittings needed for renovations.

The company, which bought the property last year, will also be exempt from paying hotel tourist tax, property tax and the employer’s share of payroll tax for ten years, the duration allowed by law in effect for renovations of existing hotels where the expenses are worth more than half of the appraised value of the property.

Presenting the order, Vance Campbell, the Minister for Tourism, told MPs the plans were a sign of confidence in Bermuda and the tourism industry.

He said, “For growth and development, any economy needs investor confidence. This trust manifests itself in many ways and in the hospitality industry, investment in the physical facility and in the people providing the service are key indicators.

“Investors are said to be confident when the news about the future is good. This order is another tangible demonstration of the investor confidence that exists in Bermuda as a tourist destination.

Mr Campbell said the renovations to the “iconic property” were significant, with upgrades planned for all existing cottages, restaurants, spa and public areas, including tennis courts, swimming pools and grounds.

He said: “This is a local business that has taken the vision of the original family owners and decided to develop it for the benefit of Bermuda’s tourism product.

“This is the kind of development and growth that the Tourism Investment Law is designed to support.

“Honourable members will note that the terms of the order are consistent with the existing provisions of the Act and represent the owner’s ability to realize the plans and vision for the site.

“Cambridge Beaches aims to ensure that Bermudian staff are continually trained and promoted through the ranks to provide the resort with a consistent level of service, longevity and local hospitality vibe.

“The owner is clear that the success of the resort has been and will continue to be dependent on its people. Cambridge Beaches will ensure the resort continues to run comprehensive in-house training and refresher courses.

“The news about the future of tourism is good. Tourism-related businesses are seeing a vibrant return of trade and the government’s objective is to facilitate the conditions for this growth to continue.

Cambridge Beaches was sold last year to US-based Dovetail + Co, which describes itself as “a genuine and imaginative hospitality owner, developer and operator”.

In an interview with The Royal Gazettethe company said it was planning a three-year upgrade to the property.

* Story has been edited to correct an earlier version that the duration of tax benefits was increased from 5 to 10 years.