The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

GRAND Bahama hoteliers yesterday welcomed the five-year, 50 per cent reduction in their occupancy taxes, saying it would free-up cash flow for investing in other activities.

During his 2012-2013 Budget communication, Prime Minister Perry Christie said the economic plight of Grand Bahama was "painfully evident", and the unemployment situation there showed that reality.

While a new ministry for Grand Bahama has already been created, with a mandate for ensuring the island receives maximum benefits from all government initiatives, Mr Christie said: "For existing properties in Grand Bahama, the hotel occupancy tax is being reduced by 50 per cent for five years for all properties filing returns under the newly-introduced electronic reporting system.

"And to assist in the success of new hotels, the hotel occupancy tax will likewise be reduced by 50 per cent for 10 years after opening. To access these concessions, it will be necessary for a hotel to register online with the new electronic reporting system ,as is required of all hotels in the country."

Magnus Alnebeck, general manager at Pelican Bay Hotel, told Tribune Business the announcement was welcome news for hotel properties on Grand Bahama.

"My taxes will go down and we will have more money to do other things at the resort," Mr Alnebeck said, noting that the reduction in occupancy tax would also result in a rate reduction for consumers and make his resort more competitive.

Mr Alnebeck added that Bahamasair's takeover of Vision Airlines' service was critical to providing increased airlift to Grand Bahama.

"Grand Bahama has always been an expensive place to fly to," Mr Alnebeck said. He added that for some time Grand Bahama had been more of a one-resort destination, and said: "Grand Lucayan needs to get back to what they once were, 1,300 rooms. They are like 500 rooms now and really haven't done much in terms of marketing. That's the challenge. Grand Bahama has been for a long time a one resort destination."