NASSAU, The Bahamas — Deputy Permanent Secretary in the Office of the Prime Minister, Isla Deane explained the benefits of the Hotels Encouragement Act to local investors at a Downtown Revitalisation and Investment Incentives seminar.
The Bahamas Government and Bahamas Chamber of Commerce and Employers Confederation (BCCEC) co-sponsored the seminar at the British Colonial Hilton, Thursday, June 21, 2012.
Mrs Deane said, “The Hotels Encouragement Act was enacted in 1954 to encourage the construction and renovations of hotels in The Bahamas, and it was amended in 2009 to include entertainment facilities, nightclubs, restaurants and shops located in touristic areas.”
She explained that the Act provides exemption of customs duties on imports of building materials, furniture and equipment for new and existing hotels, entertainment facilities, nightclubs, restaurants and shops.
The minimum number of rooms to access concessions in New Providence is 10 and in the Family Islands the number is four rooms.
Mrs Deane said the Act also provides Real Property Tax exemption for the first 10 years; $20.00 per bedroom per annum from 11th to 20th year; and further periods up to 10 years at $250 per bedroom per annum in New Providence and Paradise Island and $100 per bedroom per annum in the Family Islands.
There is also duty-free importation of construction plant on a temporary basis and exportation on completion of project.
“Construction plant” means in the case of New Providence, machinery, equipment, tools and trucks of all kinds used in the building trades, but does not include machinery for the manufacture of wooden doors, door-frames, windows, window frames, mouldings, cement tile and cement block, and, in the case of a Family Island, machinery, equipment, tools and trucks of all kinds used in the building trades.
She stressed that the Hotels Encouragement Act does not allow exemption from payment of Business and Hotel Licences.
Mrs Deane also gave a list of requirements needed when making an application under the Act. These include:
• List of items to be imported with cost estimates
• Copy of approved architectural plans, including site plan and/or photographs
• Copy of Building Permit
• Original Agreement signed in duplicate
• Proof of ownership of property or copy of lease
• Copy of current Hotel Licence
• Copy of Business Licence
• Source of funding
Applications should be sent to the Director of Investments, Bahamas Investment Authority in the Office of the Prime Minister.
By Llonella Gilbert
Bahamas Information Services
