By TAMARA McKENZIE, Assistant News Editor, tamara@nasguard.com

An amendment to the Hotel Encouragement Act, passed in the House of Assembly last night, is expected to allow Bahamians access to a bigger slice of the tourism pie.

The amendment allows Bahamian-owned establishments engaged in the tourism business to compete on a level-playing field with international investors.

When the amendment is passed into law, Bahamians who are not operators of hotels but own and operate businesses on resort properties will be able to access the same concessions that are available to both Bahamian and international owners and developers of hotels in The Bahamas.

Today, there are some 148 Bahamian-owned establishments that have benefited from concessions under the Hotel Encouragement Act, which was passed in Parliament back in the 1950s. Amendments to the Act were made in the 1990s by the first Free National Movement administration.

The Hotel Encouragement Act was designed to provide support and exemption from the payment of certain taxes, specifically customs duty and real property tax, and to encourage persons to construct hotels to support the tourism industry.

Prime Minister Hubert Ingraham highlighted yesterday in the House of Assembly that once the Hotel Encouragement Act is amended, it will allow Bahamians to locate, upgrade or maintain their retail or restaurant businesses located in prime tourist areas including downtown Nassau, Cable Beach, in the vicinity of the Paradise Island bridge or elsewhere in New Providence — even Over-the-Hill.

There will be four areas under which these benefits can be accessed. These include:

* A facility located within a hotel

* A facility located within a resort area, for example Paradise Island or Cable Beach

* A facility in a high tourist traffic area

* Other designated areas

The prime minister explained that while there are several hotels that have restaurants that cater substantially to local patrons that were built with concessions under the Hotel Encouragement Act, a Bahamian wanting to establish a business in that same vicinity would not be able to access the same concessions as the owner of that hotel.

"And so what has not been done up to now is the provision of access to these concessions by Bahamians who are not owners or operators of hotels," Ingraham said. "They may be providing the service but they are not owners of the hotel so they cannot get what the hotels get. Even Bahamians who own and operate businesses in resort properties cannot get what the foreigners are able to get."

As it now stands, the Hotel Encouragement Act also permits the owners and or operators of hotels to qualify for customs duty concessions on items imported for the new construction and furnishing of hotels and resort properties including hotel owned amenities.

Hotel operators also benefit from these concessions for the outfit or renovation of any hotel logo shop, restaurant or place of entertainment owned by the hotel owner or operator. However, independently owned Bahamian businesses located within a hotel or resort property are not permitted to benefit from these concessions.

The Prime Minister also revealed that Bahamian-owned businesses in downtown Nassau, which serves as a shopping Mecca for both cruise ship and hotel-based guests, are not eligible for any incentive or concession to assist with construction, start-up, refurbishment or expansion of their business notwithstanding the vital role they play in the make-up of The Bahamas' tourism product. The government, he said, has taken the position that this should change.

"We believe that this places Bahamian businesses at a disadvantage to hotel-owned and operated concerns and no doubt also serves as a disincentive to Bahamian businesses to locate in resort areas, to regularly upgrade and maintain their business properties or to expand them," he said.

Meanwhile, Prime Minister Ingraham revealed that by the end of this year, the government will return to Parliament with a bill that will include all of the incentive legislation into one Act.

The government, he said, is also considering the exemption of Customs duty, Real Property Tax, Business License Fees and the Stamp Act for businesses that need to be significantly upgraded, refurbished or restored in the city.

"Finally, my government will introduce a bill to provide for Customs duty concessions on materials required for the construction and upgrade of designated airports. Specifically, the Lynden Pindling International Airport and Marsh Harbour International Airport will be immediate beneficiaries, but so will Treasure Cay, North Eleuthera and Moss Town, Exuma," the prime minister said.