Vexed Bermoothes

FinMin Cox has announced that exempt companies could be allowed to buy hospitality units on hotel properties for use as residential units.  The developers are celebrating, but is this a good “sustainable” idea for Bermuda?

In my opinion, it’s totally schizophrenic.  Just think:

The PLP has been bullying Bermudians with foreign spouses saying Government needed to protect land ownership for future generations of Bermudians.  Then they turn around and facilitate the sale of property to foreign corporations (and provide tax concessions on top of it!)  Does. Not. Compute.

With the slump in employment, the executive rental market has already slumped.  Will this Government move further hurt Bermudian landlords/taxpayers?

Will the move hurt the hoteliers, who depend on “price insensitive” business travellers to boost their margins?

Is this an admission that more exempt companies – pissed off by the term limits insanity – are bringing “commuter execs” in for short stints rather than basing them and their families here full time?

Much is made of the hotel concessions first introduced by David Allen.  In my view they were indisciplined as they, essentially, drove the mass conversion of Bermuda’s small hotels into condos. They did not rejuvenate the industry, which today is totally driven by low margin cruise visitors.

Government is desperate for good news in tourism to the point that they will fund a three star hotel using a low cost housing project. Seriously, does that sound like a good idea to anyone?

To me, this announcement is a gesture of throwing in the towel.  You can pretend they are hotels, but more and more they are sounding like expat residential developments.