ST. JOHN’S, Antigua – Prime Minister Gaston Browne says the Jamaica-based Sandals Group is currently in discussions with his government detailing plans to invest a further US$100 million in expansion to include several “over-the-water’ bungalows.
Speaking on his weekly radio programme, Prime Minister Browne said that there have been ongoing wide-ranging discussions between the government and a team from Sandals Resort.
“Sandals has applied to do an expansion by adding over 100 rooms where they will spend over US$100 million that will include16 over the water bungalows. What we have said to them is that they cannot build the bungalows in the middle of the beach,” Browne told radio listeners.
“So they will be going southwards towards ‘The Groin’ so that they do not impede the use of the beach by other users,” he said, indicating also that the discussions included issues surrounding taxes, a source of contention between the government and the hotel in recent years.
“We have settled on an amount of $6.5 million which the hotel will pay into the government shortly. I believe that they have already placed the amount in eschew. I can now report that this is now a settled matter as it is now up to the attorneys to complete the agreement,” Browne said.
In November 2024, Prime Minister Browne told the Jamaica-based Sandals Resorts International (SRI) to consider removing its property from his country after he claimed that the luxury hotel brand, Sandals, has adopted a policy of not wanting to pay taxes.
Browne said then that Sandals, which owns the 373-room Sandals Grande Antigua, a six-star, all-inclusive, adults-only resort, owes an estimated EC$30 million (US$11.1 million) in taxes.
He said most of the taxes owed are from the Antigua and Barbuda Sales Tax (ABST) which Sandals collected for the government and was holding on to portions of the money.
“I don’t understand why these ‘so-called’ investors feel that they are the only game in town and are the only stakeholders to benefit. So they try to wring every ounce of revenue out of the business and they don’t want the government to get anything in the form of taxes,” Browne said then, adding “I have been through this already with Sandals and I don’t want to go down that road with them again.”
During the radio programme, Browne told listeners that the current discussions also touched on staff issues at the hotel especially on the issue of staff remuneration.
He said that the hotel has assured him that based on the system that they use, entry level staff can make over EC$4,000 per month when gratuities are added to the EC$2,600 basic pay.
“That was shocking to me! If indeed entry level staff at Sandals are making that type of money, that is decent and other hotels ought to be emulating Sandals,” Browne said, recommending that Sandals also establish a crèche to accommodate those members of staff with children so that these individuals are not placed in a dis-advantageous position.
According to the prime minister the resort management has agreed to the suggestion and made a commitment to explore establishing such a facility as soon as possible.
