Opposition Suggest Hotel Licence Policy Reform

September 2, 2014

“The news that many new Bermudian owned tourism properties may have run afoul of the Hotel [Licensing and Control] Act 1969 [PDF], requiring any tourist accommodation which sleeps six or more people to be licensed with the Government as a hotel, and for the owners to pay hotel occupancy tax is disheartening, yet represents a real opportunity for reform,” PLP leader Marc Bean said today.

“With Bermudian job losses mounting, the Progressive Labour Party’s position is that we must examine ways to reduce red tape and create red carpet for Bermudians seeking to create economic opportunities for themselves and jobs for Bermudians,” continued Mr. Bean.

“The current approach protects vested interests while creating barriers to Bermudians seeking to enter into the one sector that should be open to all, tourism.

“The efforts of these entrepreneurs must be supported, not hindered, as their success would mean adding much needed beds to our overall tourism inventory, diversifying our product and perhaps, most importantly, getting our people back in the business of hosting our overseas visitors.

Mr. Bean added, “To that end, the PLP proposes:

  • 1] A review of the licensing process for tourist accommodations with a view towards streamlining the process, while balancing the need for government oversight with the equally pressing need to get qualified, capable Bermudians earning a living in our own country
  • 2] Exempting newly created tourism facilities that sleep under ten people from hotel occupancy tax for 3 years. This would allow new businesses to have more money during the first several years when businesses are more likely to suffer from cash flow problems
  • 3] Increasing the number of people a facility sleeps to be considered a hotel from 6 to 10 allowing more small, Bermudian owned properties to have more money in their pocket to invest in their properties and hire Bermudians.

Shadow Tourism Minister Zane DeSilva said, “Encouraging more Bermudians to convert private homes to Tourism rental accommodations is a tangible solution that would generate more foreign currency particularly since visitors that arrive via air spend on average six times more than spent by cruise passengers.

“Encouraging more Bermudians into tourism by making it less cumbersome – ‘rolling out the Red Carpet to Bermudians’ will make us less dependent on International Business and lesson the need to bolster Immigration numbers.

“Supporting reform that balances standards with slashing red tape will make this transition more encouraging and assistance from the island’s banks through low interest loans would provide a much needed boost to our economy.

“We encourage current and future tourism property owners to respect the law as it exists today. We encourage the government to work with the owners who have potentially run afoul of the Hotel [Licensing and Control] Act 1969 with a view toward fixing the situation as opposed to punishing the owners.

“Finally, we encourage the government to work with us on these proposals and other ideas to create more red carpet and less red tape for Bermudians seeking to create businesses for themselves and jobs for Bermudians.”

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Comments (43)

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  1. Terry says:

    Wow!!!
    They read online

    Keep throwing it out there Marc et al.

    Tomorrow we will hear about male sex offenders and staukers, then the price of bread for unemployed.

    I need a rum.

    • MORTGUAGE says:

      I remember a time not so long ago (15 years +) when we rented rooms and homes to guest workers. Since Marcs predecessors pushed them away, people have had to go to the next best option to save their homes and pay their mortgages.

      Go away Mr. Bean , your last 14 years got us here.

      • LOLOLOLOLOLOLOLOL says:

        One breath you say Marcs predecessors and in the other you say Marc. Which is it? Make up your mind.

  2. Evie says:

    That is a wonderful idea my family have been doing this for years and every year we have more and more visitors that stay on our property for much less than a over priced hotel any tasteless foot they love Bermuda SMDH lolo

    • hmmm says:

      So you own a property with more than 5 beds ???????

      Or do you just have house sitters or friends and family guests?

      • SMFH says:

        Thats something a non- Bermudian would do that could give careless about the island and live here.. Can see how a Bermudian would do that to it’s own island.. Oh right this is how jobs are being lost and your ok with it lol… LOL

  3. GOD1ST says:

    wow!!!wow!!!! A all inclusive government that isn’t insecure !

  4. San George says:

    This is the ideal way to revive tourism and utilize the excess housing – government will never be the leader in reviving tourism. Government only hurts business with taxes and red tape.

    Kudos to all of you people that are doing this.

    • hmmm says:

      People have been doing this for years…this is nothing new

  5. Justin says:

    Never once would you think that an individual would need a license to actually protect tourists… You know, the same reason why an individual needs to get a license before driving a vehicle on the road. The PLP never seems to amaze me with their foolish ideas. It is shocking.

  6. Get A Clue says:

    Good day Mr. Bean/Desilva

    Will these houses providing tourist accommodations employ the hundreds of people that would gain employment due to a new hotel?

    Will putting more residential properties online as an accommodation option have a negative impact on hotel occupancy rates?

    Will lower occupancy rates have an impact on potential hotel developments?

    How will we achieve our employment goals if there is no new developments due to industry occupancy rates being too low and unattractive to investors?

    Please think things through.

    I want the best for Bermuda and some of the things coming out of politicians mouths genuinely scare me. You should be thinking long term; our sad reality here is that politicians say things for the short term hype.

    Poor Bermuda.

    2 Years till were broke :)

    • Impressive says:

      I think you missed the point.. There is a lack of beds in Bermuda at the moment,,.. All the advertising in the world is good, but if you don’t have the beds to accommodate the increase in tourists, then the numbers will never rise, (Until someone come along and actually builds a hotel and not just talk about building a hotel_

      • Creamy says:

        If the PLP thinks Occupancy Tax is suppressing the tourism industry, you have to wonder why they increased Occupancy Tax from 7.25% to 9.5%, a 31% increase, in 2010.

        Is this another PLP law they passed by mistake?

  7. jon says:

    Wow I agree. Hope this is at least discussed.

  8. just sayin' says:

    How about … the law protects tourists, generates revenue for Government, and makes it a level playing field for small guest houses. Those who rent out their apartments and houses currently have an unfair advantage over Bermudian entrepreneurs who have licensed guest houses. That’s where the comparison is, not with the medium-size and larger hotels.

  9. hmmm says:

    It only currently applies to 6 beds or more. If you have a property that is 6 beds or more that you rent out to visitors, then the small amount of occupancy tax shouldn’t be a burden that can’t be afforded.

  10. Allspice says:

    I’m all for some deregulation though there needs to be include some protection of the consumer. Even if you disagree with the idea I think it is refreshing to hear some positive thinking coming from the PLP.

    A little more thinking and a little less shouting and we might actually get somewhere.

  11. hmmm says:

    “Encouraging more Bermudians into tourism by making it less cumbersome – ‘rolling out the Red Carpet to Bermudians’ will make us less dependent on International Business and lesson the need to bolster Immigration numbers.”

    Zane has lost the plot. If they are not paying tax, how does that help the government, also people who wanted to do this are already doing this, so again, how does this help the government and lessen the need to have more people living in Bermuda?

  12. A Dingo says:

    Wow, if ever one needed proof that the PLP believes in ‘back of a cigarette packet’ policy formation…….

  13. Family Man says:

    AirBnB has been around for a while. Great service when you want to stay like a local instead of in a cookie-cutter hotel room. It services a different market than the hotels attract. Forcing an AirBnB host to close will not increase hotel occupancy. It will just decrease tourism and related revenues.

    Same for Couchsurfing.

    Can’t wait until somebody starts an Uber service here to provide reliable transport.

  14. Terry says:

    Many years ago we welcomed College Students who inundated our shores and rented rooms.

    Millions were made by all.

    Life is a bitch.

  15. jt says:

    Gents – there’s this small matter of the debt. I know, I know…debt is not a bad thing, as you’ve told us before, but still…there it is. This is a nice sounding little suggestion, but mom and pop tourism is not going to pull us out of debt. Then again, perhaps you think 1/2 of our oversized civil service will jump at this opportunity and leave their government jobs and that savings will pay down the debt? Well then, O.K., by all means.

  16. Creamy says:

    Another knee jerk reaction from the PLP. Who exactly among PLP heirarchy has fallen foul of this and failed to pay their taxes? It’s the only logical explanation.

  17. Sid says:

    Charging a high occupancy tax on big hotels but not on little hotels is the ideal way to discourage anyone thinking of building a big hotel in Bermuda

  18. Kangoocar says:

    Oh great!!!! We now have the shallow min Zane and beany, encouraging less regulation on the places ( now 6 beds and under, which he wants to increase too 10) that provide accommodations to our tourists??? Anything to be heard and possible get a vote, eh zane/ beany???? Without strict controls on the accommodations provided to our valued visitors, can you imagine the endless possibilities of tourists vacations being soured???? This is just another hair brain idea from these two imbeciles that once again have not been thought through??? Beany I can understand because of his lack of REAL business experience but Zane???? He actually does have a very successful business and should know better??? The plp’s nonsense and rhetoric will never end!!!!!!!

    • Impressive says:

      You have a great deal of hate, and bitterness there.. Its a democracy and you are entitled to disagree with any policy or legislation that may be proposed or enacted, but why in such a manner??

      • Kangoocar says:

        A great deal of hate??? No I don’t! I just have no patience for half baked ideas from a former government that continues to spew nonsense with out thinking anything through??? We had the last 8 yrs of that nonsense before they were finally ousted, but it was not fast enough!!! They left us with an incredible debt, $ 2 billion, or close enough and $800 million lost somewhere??????? The time has long past for them to apologize!!!! Unless they apologize for their incompetence ( which means they acknowledge it) you do realize we are in this financial hole because of them don’t you??? Also I have to ask you, do you really think that you are not responsible for that debt and how much that debt is dragging all of us down??? This new government ( OBA ) was handed a huge mess!!! When the plp took over in 1998, they had just about no debt to deal with!!! The plp took us from the envy of the world, to the laughing stock of the world!!!!!

  19. Strike fund says:

    I’ve used airbnb a few times in NYC and it’s been great, but the City is looking into regulating it as they are losing on hotel occupancy tax. I also got the impression that it was basically subletting as a couple of my hosts told me to say I was a friend who was visiting.

    I definitely think legislation needs updating to accommodate (pardon the pun) this modern form of tourism.

    Should also be done with union input as some of these potential tax breaks the PLP are suggesting would be in direct competition with the unionized hotels.

    • steven says:

      Im Bermudian living in nyc and own a condo in midtown. Im on the board and we have problems with AirBnB hosts and when we find out someone is doing AirBnB they are fined $1000 per offence and reported to the ciy.
      NYC Has hoteling law that prohibits short term leasing in private apartments for under 30 days, so even though you may be told to say you are visiting a “friend”, you may find yourself out on the street because your friend has been hit with a condo fine and reported to authorities.
      It is also not permitted under most condo assoc bylaws.
      It is done for several reasons. One being the protection of visitors. It is also to protect owners from various risks. What is to stop a visitor from deciding not to leave? As an owner you don’t have legal protection of a lease.
      http://www.nysenate.gov/report/answers-new-yorkers-concerned-or-confused-about-illegal-hotel-law

  20. Triangle Drifter says:

    Wonderful! With the loss of revenue has the Opposition suggested which Government services or jobs which will be cut? Waiting….waiting some more….the sound of treefrogs…

    Nope, did not think so. More noise from the PLP. Nothing thought through.

  21. Ringmaster says:

    All academic anyway. To change a Law it needs to be brought to Parliament, debated and passed. Then go through the Senate and then to the Governor for signature. Unfortunately the PLP have announced they are boycotting Parliament until the Governor is recalled. Since that won’t happen, the PLP won’t attend Parliament and so any suggestions such as this are irrelevant.
    Unless the PLP breaks its promise not to attend Parliament.

  22. Triangle Drifter says:

    How about this? If a small property gets a break on 10 guests, 5 rooms, then every property should get a break on 5 rooms a day.

    Imagine the problems trying to keep track of & oversee that. So if a 100 room property has say 50 rooms occupied, it only pays on 45 of those rooms that day.

    A nightmare to control. But hey, it might provide yet another civil servant with a job to oversee it. Trouble is the yield won’t match the salary so what is the point.

  23. We Are Not Amused! says:

    just another way the plp are trying to get a few people to vote for them.

  24. Chris Famous says:

    Do you all think every potential tourist can afford $500 per night ?

    Hence one of the contributing factors of less air arrivals

    If we make it more affordable for persons to stay here then we see revenue in the form of

    Groceries
    Electricity
    Departure tax
    Souviners
    Bike rentals
    Liqour sales
    Etc etc

    If 1000 extra tourist come because they can afford a private residence I don’t see why you all see fit to complain

    Or do we sit and wait on those that can afford to pay $500 per night?

    • Triangle Drifter says:

      Oh silly me, I did not know that hotel visitors did not eat, did not use electricity, do not pay departure tax, don’t buy souviniers, rent bikes or drink etc.etc.

    • hmmm says:

      so does an ex-pat or number of ex-pats renting a property contribute more or less to the economy ?????????

      I think that it is a resounding MORE.

      • Royal Flush says:

        Expats don’t inject any new money into the economy, and are known to send money back home. while tourists inject foreign money into the economy.

        Tourist $ > Expat $

    • GOD1ST says:

      You are spot on Brother Chris. Continue to enlighten Bermuda to the facts that exist which need to be implemented.

  25. Hmmm says:

    Chris, people are doing this already. the amount of people and properties engaged in this form of tourism isn’t suddenly going to increase.

    This therefore isn’t adding anything unless you are planning of building a tourist property for 6 to 10 people to rent out.

    If you are then it must be nice to have that kind of money floating around to risk. Most Bermudians don’t.

  26. Sara says:

    As an opposition, you have to ask yourself, why didn’t we do anything about x,y,z before we run our traps. If you can’t give an honest answer and then address the issue, then you just look like a boy crying wolf to everyone.

  27. JUNK YARD DOG says:

    Y’all want more regulations here is one.

    “How am i doing ” regulation.

    Bermuda grade each and every Business, Service, institution and Government department on the” 5 Star principal” and post it on their door and in Media advertisement ,start every one off with 5 stars, you will soon see everything get better around here.