VIDEO: Sandals to Pay Antigua and Barbuda Government $6.5 Million In Tax Settlement

Sandals Resorts International has agreed to pay the government $6.5 million to settle outstanding tax-related issues as the company moves forward with plans for a major expansion of its Antigua property that will include more than 100 additional rooms and new overwater bungalows.

Prime Minister Gaston Browne disclosed the settlement during his weekly radio programme on Saturday, describing recent discussions with Sandals executives as productive and wide-ranging.

“We had some issues with taxes and we’ve settled for $6.5 million, so they’ll be paying the government $6.5 million shortly,” Browne said. “I think they put the money in escrow already.”

The prime minister said representatives of Sandals, including members of its executive team and legal advisors, recently met with him to discuss a number of matters involving the resort’s operations, planned investments and employee welfare.

Among the most significant developments is a proposed expansion estimated to cost more than US$100 million.

According to Browne, the project will add over 100 rooms to the Sandals Grande Antigua property and include approximately 16 overwater bungalow rooms designed to attract high-end visitors.

The government has approved the development but has required that the overwater accommodations be located toward the southern end of the property near the groyne rather than in the middle of the beach.

“What we’ve said to them is that they cannot build those overwater bungalows in the middle of the beach,” Browne said. “They’ll be going southwards towards the groyne so that they do not impede the use of the beach by other users.”

Browne defended the expansion, arguing that Antigua and Barbuda must continue to increase its tourism capacity and develop products capable of attracting higher-spending visitors.

He said overwater bungalows have proven successful in destinations such as the Maldives and Bora Bora and can command room rates of several thousand dollars per night.

“These units provide a very high yield,” Browne said. “They help to enhance the tourism product and place us in a more competitive position.”

Beyond the expansion plans, Browne said discussions also focused on the treatment and welfare of employees.

The prime minister said he raised concerns about the challenges faced by workers with young children and suggested that the resort establish a daycare facility to support staff members.

“I said to them too that they should establish a crèche for the staff, especially the local and regional staff, to make sure that they’re not displaced because they may have young children and be unable to work because they have no one to care for the children,” Browne said.

According to Browne, Sandals executives responded positively to the proposal.

“They have agreed, actually. They see it as a good idea and they say they’ll definitely look into it and see how they can put that in place as part of the infrastructure to facilitate the staff,” he said.

The prime minister said the childcare facility could help improve workforce participation and provide greater support for employees balancing family and work responsibilities.

Browne also referenced information provided by Sandals executives regarding employee compensation.

He said company representatives indicated that entry-level workers, when gratuities and other earnings are included, can earn more than $4,000 monthly.

“If indeed entry-level staff at Sandals are making that kind of money, that is decent,” Browne said, while noting that he was relaying information provided by the company.

The prime minister said Sandals reported contributing more than US$50 million annually to the local economy through wages, purchases and various taxes and fees.

The expansion is expected to further increase the resort’s footprint in Antigua and Barbuda’s tourism sector and add to the country’s room stock as visitor arrivals continue to grow.

Browne said the government remains committed to supporting responsible tourism investment while ensuring public access to beaches and protecting the interests of local workers.

The proposed expansion is expected to proceed following the completion of planning and environmental requirements.

Source: Prime Minister Gaston Browne on the Browne and Browne Show.

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