Fairmont Southampton Act Tabled In House
[Updated] Minister of Tourism Vance Campbell will be delivering remarks in the House of Assembly today [April 22] on the ‘Fairmont Southampton Hotel Act 2022′, and a Bill by the same name is listed on the Order Paper under Government Bills.
The hotel has been closed for some time, and last month Westend said they have “obtained third-party institutional debt and equity investors for the Fairmont Southampton in excess of $300 million,” and noted that the “target is to commence the re-development this summer with a plan for a grand re-opening in 2023.”
The developers also noted that “upon reopening, the hotel will create over 800 direct employment opportunities and many more jobs for local restaurants, taxicabs, and other related businesses.”
We will carry the audio live, and it is likely to start sometime from 10.00am to 10.30am — which is an estimation on our part and should be taken as such — and we will update with the full statement once it concludes.
Update: The Bill grants a number of customs duty and tax concessions for 15 years, it can be read in full below.
The Minister’s full statement follows below:
Mr. Speaker, cruise ships have returned to Dockyard, air arrivals and hotel occupancy are increasing, and we are on the cusp of events that will see the return of a growing number of visitors to Bermuda. Slowly, but surely, the foundation for recovery is being laid.
Mr. Speaker, this Honourable House has returned today so that a Bill of national importance can be tabled. The Fairmont Southampton Hotel Act 2022 continues the delivery on a promise made to the people of Bermuda. Mr. Speaker, in this Government’s 2020 Election Platform we specifically outlined that the Government would:
“..support….major public and private sector building projects..to provide employment in construction over the next five years.” Among those projects is the redevelopment of the Fairmont Southampton Hotel.
Mr. Speaker, the Bill to be tabled today also delivers on a key undertaking made by the Government as part of negotiating the full extent of support required to make this redevelopment a reality. I can advise this Honourable House that those discussions are at a technical and advanced stage, involving counsel for both sides working through the various practical aspects of the agreed Heads of Terms. The Ministry of Finance is fully engaged in these matters and it is my expectation that the Honourable Premier and Minister of Finance will be in a position to further update this Honourable House when this Bill is taken up for debate.
Mr. Speaker, the Government of Bermuda has moved quickly to fulfill its commitments by bringing this Bill today. Investors’ confidence in the Island and its future must be met with nimble and flexible approaches to ensure we achieve the economic growth necessary for economic recovery. The Bill’s proposed grant of concessions for 15 years represents that flexible approach and Honourable Members will note that the extension of concessions for that period retains the same protections contained in the Tourism Investment Act 2017.
Mr. Speaker, I also wish for the public to know that this Bill deliberately contains the necessary protections for Bermudian employment and Bermudian upward mobility in the industry. The Government is determined that those Bermudians who choose careers in hospitality will be treated fairly and have every opportunity to grow in the industry according to their work ethic, interest and commitment.
Mr. Speaker, today represents another critical milestone in the advancement of economic recovery and tourism renewal for Bermuda. I emphasize that this is a milestone because there are many more to meet before we see tourists welcomed back to this hotel. There is a considerable amount of work that remains to be done.
Mr. Speaker, global demand for travel has returned. Bermuda’s hotel bookings for the coming months are said to be strong and this is encouraging for all elements of the tourism economy. The Government is committed to advancing this redevelopment, signaling that tourism can renew its claim as a twin pillar of this economy, providing economic activity, economic growth and career opportunities for the people of Bermuda.
Thank you, Mr. Speaker.
The full Fairmont Southampton Hotel Act 2022 follow below [PDF here]:
Oh good. Let’s give away more money.
Every time a government (especially this government) tries to do something regarding tourism development or financial development, there are certain special interest groups and subject matter “experts” who try to derail the efforts before they even get started. Then these same people will decry the government for lack of progress.
I am firmly in support of this project, and the jobs that it will bring to Bermuda, both in construction job short term, and hospitality jobs long term. Over 700 people lost jobs due to the closing of Fairmont Southampton, and the sooner we have activity on this site the better. It is a shame that much of the criticism is likely coming from individuals who have not a worry in the world where their next paycheque is coming from, yet they find it ok to shut down possible income for their fellow Bermudians. It is unconscionable.
You talking about the Americas Cup?
It is a shame that the government was subjected to “certain special interest groups and subject matter “experts” who try to derail the efforts before they even get started. Then these same people will decry the government for lack of progress.”
Too bad the government didn’t capitalize on that success.
Why can’t this Government see that tourism is dead, we don’t have the cost savings or the year round weather to compete. Accept it for what it is.
And yet the cash cow of IB is consistently ignored, with PRC applications STILL taking a year, despite Hayward’s contrary words.
They just aren’t any good.
Tourism is not dead despite the narrative trying to be portrayed by some . Prior to the pandemic, numbers were doing very well. It will take investment and hard work but it’s possible. it doesn’t need to reach the heights of IB for it to still remain important. There are hundreds of families that will benefit from this project (and others), who will never be hired in IB. The tourism industry will employ them and allow them to make a decent honest living. While IB is vitally important to our economy, it is not the only game in town, nor should it be. Funny how people are quick to criticize the government on these concessions but stay mum on the tax exemptions provided to IB.
buRty taking care of FOF..
Worst arrogant premier ever, needs to cut the strings