Hotel Developers Benefits From Updated Act
Hotel development in the Bahamas has restarted quicker than other Caribbean islands, in part due to a recently updated government measure which slashes construction costs.
The Hotel Encouragement Act, which was first introduced in a basic form in 1954, exempts qualified developers from paying duties on most construction materials. In 2009 the HEA was amended to include entertainment facilities, nightclubs, restaurants and shops located in designated areas, providing a substantial added incentive for developers.
It’s been very, very helpful for us,” said Eddie Lauth, one of the developer partners behind French Leave Marina Village, a 270-acre project under construction on Eleuthera.
The HEA is saving French Leave anywhere from 20 to 40 percent on construction materials, depending on the material, Mr. Lauth told WPC News. The HEA also exempts projects from property tax for the first 10 years and allows developers to import construction machinery duty free.
“They have refined [the HEA] and they have made it much more manageable for developers to come in and qualify for it,” Mr. Lauth said.construction, development, hotels, real estate