The new rules, effective May 1 2010, now require citizens of countries such as South Africa, India, Panama, Philippines, Turkey, and the Dominican Republic to obtain visas to enter the country.

The move has prompted much criticism in the media and throughout the tourism industry as it was not widely announced.

Some cruise passengers who had booked trips months before the regulations came into force were reportedly unable to come ashore when their ships docked.

The standard rate of payroll tax will increase by 2 percent to 16 percent; the proportion payable by employees will rise 1 percent to 5.75 percent. The salary cap for payroll tax will increase from $350,000 to $750,000.

Other tax changes include a doubling of foreign currency purchase tax, a 5 percent increase in the cost of motor vehicle licences, and increases in stamp duty.

The breakfast briefing was held at Camden House and was attended by senior Bermuda and UK Government officials and executives from reinsurance and financial services in Bermuda.

The atmosphere was cordial and informal. By agreement, the discussions were off-the-record. Guests agreed that the meeting was very useful as a necessary interchange between partners.

Topics ranged from Bermuda’s unique role as a successful and credible leader as a financial services centre, despite its size; the necessity for Bermuda to ensure that independent observers comment favourably on Bermuda’s reputation; the importance of Bermuda having its own voice, despite the oversight role of the UK; and shared assessments of the continuing impact of the global recession on Bermuda and its partners.

Other guests at the breakfast briefing were: His Excellency, Sir Richard Gozney (Governor); Hon. Paula Cox (Deputy Premier and Minister of Finance); Philip Butterfield (HSBC Bermuda); Julian Cusack (Aspen Re); Peter Durhager (RenRe); Evan Greenberg (ACE); Peter Hinchey (Secretary to Secretary Miliband); Darren Johnston (KPMG); Brad Kading (ABIR); Don Kramer (ArielRe); Mike McGavick (XL); Arnold Minors (Press Secretary); Cheryl Packwood (BIBA); Donald Scott (Financial Secretary); and Alan Thompson (Butterfield Bank).

The article states that the company will transfer its hedge fund operations to offices in Cincinnati and Boston. Many of the 27 Bermuda-based workers have been offered new jobs in US.

The island has also concluded negotiations on further TIEAs with Mexico, Canada and Japan.

Last month Bermuda signed its 12th TIEA with the Netherlands, and was removed from OECD’s grey list of tax havens.

Dickinson Cruickshank is the largest and one of the longest established firms of advocates on the Isle of Man. Founded in 1899, it is now one of the two dominant law firms on the island with 11 partners, 27 other lawyers, 17 fiduciary service providers and a total staff of 119. It is a full service firm practicing Isle of Man law with a specific focus on corporate and commercial, private client, dispute resolution, property and fiduciary services. The firm is consistently in the top ranking in the major international legal directories and has twice been nominated as “Offshore law firm of the Year”.

Commenting on the merger, Paul Morris, Dickinson Cruickshank’s Senior Partner said: “We believe that the merger with Appleby, as a global offshore services provider, is not only a first on the island and an invaluable resource for our clients, but it will also provide a huge boost to the Isle of Man’s capabilities, status and reputation in the international offshore sector. Appleby’s global reach in the key offshore jurisdictions, its recent expansion through Mauritius into the emerging markets in India, Africa and Asia, and its market leading position in international financial centres, will have a significant impact on the breadth, range and choice of services we are able to offer to our Isle of Man and international clients.”

Peter Bubenzer, Appleby’s Global Group Managing Partner added: “The opportunity to merge with a firm of the size and quality of Dickinson Cruickshank was compelling for us. The firm’s focus on their clients’ needs and, as the offshore sector evolves, their recognition of the value to clients of truly global resources, as well as a choice of jurisdictions and structures, mirrors our own strategic thinking. The merger will position us as the leading provider of legal, fiduciary and administration services across the offshore world. Our entry into the Manx market further builds our strength and depth across multiple jurisdictions — providing greater resources and greater choice to our clients. In addition, Dickinson Cruickshank’s London presence will strengthen our offering in the UK market. The merger will provide both firms’ corporate, institutional and private clients with greater resources across the locations and time zones in which they do business and a broader choice of structures and jurisdictions, unmatched by any other offshore firm. We believe that the move will reinforce Appleby’s position as the first choice for clients in the offshore sector.”

The merger will enable Appleby to further extend the services it offers to global clients seeking high quality, sophisticated financial centres through which to invest. It follows the firm’s successful opening in Mauritius in 2008, providing clients with greater access to the high growth Middle East, Asian, Indian and African markets, and in Zurich in 2009, offering access to the range of offshore centres to private bank and institutional clients in Switzerland.

Appleby first ventured out from its Bermuda origins in 1979, with the establishment of a Guernsey office for administration clients, and this latest merger is part of a thirty year development of the firm. The firm has expanded rapidly in the last three years and now has a legal and professional staff of approximately 800. It is the only offshore legal, fiduciary and administration service provider with a major foothold in six of the world’s leading offshore business centres in Bermuda, the British Virgin Islands, Cayman Islands, Jersey, Mauritius and now Isle of Man, as well as offices in London, Hong Kong and Switzerland.

The tax treaty was Bermuda’s 12th Tax Information Exchange Agreement (TIEA). Signing it ensured the island crossed the threshold for inclusion in the list of countries that have substantially implemented the OECD’s requirement in this area.

Bermuda is the first country to be removed from the grey list. It is expected to sign more tax treaties with more OECD countries in the near future.

The list was published at the end of the G20 meeting in London by the Organisation of Economic Cooperation and Development (OECD).

The ‘grey list’ comprised countries that had not signed Tax Information Exchange Agreements (TIEAs) with at least 12 other countries.

Bermuda currently only has TIEAs with the US, UK, and Australia.

The island did, however, avoid being blacklisted and not committed to an internationally agreed tax standard.

The blacklisted countries were Malaysia, Costa Rica, Philippines, and Uruguay.

The other countries on the ‘grey list’ were Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Bahrain, Belize, British Virgin Islands, Cayman Islands, Cook Islands, Dominica, Gibraltar, Grenada, Liberia, Liechtenstein, Marshall Islands, Monaco, Montserrat, Nauru, Antilles, Niue, Panama, St Kitts and Nevis, St Lucia, St Vincent & Grenadines, Samoa, San Marino, Turks and Caicos Islands, and Vanuatu.

Other cost-cutting measures being undertaken by the hotel include closing 50 percent of its guest rooms until April, operating restaurants on a rotational basis until the summer season, and temporarily ceasing its free ferry service to Hamilton.