The Bahamas’ Hotels Encouragement Act was first introduced in the 1950s to help stimulate hotel and resort development and attract more Foreign Direct Investment. It is the perfect development incentive to capitalize on the current market.
The Hotels Encouragement Act allows import duty to be refunded on all approved hotel construction materials, furnishings, fixtures, and so on, entering the country. In addition, the Hotels Encouragement Act provides real property tax exemptions for 10 years and reduced rates for up to 30 years, plus other tax savings on new hotel earnings. The act encourages “the construction of hotels in The Bahamas by providing for the refund of customs duties and emergency taxes and certain other concessions, and for the exemption of such hotels from certain taxation, and to relieve existing hotels from certain taxation.”
Any promoter or owner who wants to erect, repair, or refurbish premises for use as a new hotel may apply to the Minister for approval. Qualifying hotels must have at least 10 rooms in New Providence and at least four rooms in the Family Islands and fulfill other requirements. Prime Minister Dr. Hubert Minnis says the Hotels Encouragement Act can help boost Bahamas hotel development today and stimulate economic growth. “We continue to approve incentives under the Hotels Encouragement Act for a number of small- and medium-size business which will assist them in their recovery.”
The Hotels Encouragement Act also allows key personnel and special workmen to be admitted to The Bahamas during construction and the operation of the new hotel, as long as at least 75% of the workforce are native Bahamians (if property qualified workers are available).
Our advisors have great development properties throughout the islands. These include large tracts of beachfront land, boutique hotels, existing properties with the potential to expand, and large hotels. Here are a few listings that fall under the Hotel Encouragement Act:
If you want to research more about our market and the potential it has read our Market Report, Condo Report, or Vacation Rental Report.
Contact our advisors for more information on the Hotels Encouragement Act and development in The Bahamas.
