{"id":215950,"date":"2024-11-11T01:31:00","date_gmt":"2024-11-11T05:31:00","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=215950"},"modified":"2024-11-10T19:26:21","modified_gmt":"2024-11-10T23:26:21","slug":"pm-browne-warns-of-compulsory-acquisition-if-sandals-decides-to-close-doors-out-of-spite","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/pm-browne-warns-of-compulsory-acquisition-if-sandals-decides-to-close-doors-out-of-spite\/","title":{"rendered":"PM Browne Warns of Compulsory Acquisition if Sandals Decides to Close Doors Out of Spite"},"content":{"rendered":"
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Prime Minister Gaston Browne has issued a stern warning to Sandals Resorts International, declaring that if the hotel chain decides to \u201cspite us and lock down the hotel,\u201d the government will move to \u201ccompulsorily acquire it\u201d and sell it to a new operator.<\/p>

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Speaking on Pointe FM, Browne underscored Antigua and Barbuda\u2019s determination to defend its resources and workforce, saying that his government would not back down from ensuring fair practices in the tourism sector.<\/p>\n\n\n\n

Browne\u2019s remarks come amidst mounting tension between the government and Sandals over the company\u2019s tax obligations and employment policies. <\/p>

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Sandals has operated in Antigua for nearly 40 years without paying corporate taxes, due to a series of tax exemptions granted to attract investment. <\/p>

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These concessions were recently extended by another 20 years, allowing the company to operate tax-free until 2044.<\/p>\n\n\n\n

Browne accused Sandals of using these benefits without reciprocating through adequate reinvestment in the property or community, describing the resort\u2019s approach as a \u201ccolonial construct\u201d that exploits Antigua\u2019s economy and workforce.<\/p>

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Browne also took issue with Sandals\u2019 approach to overall business conduct in Antigua, suggesting that the resort chain has leveraged its position for years, often without regard for the interests of the local community. <\/p>\n\n\n\n

He highlighted concerns over Sandals\u2019 management structure, noting that the company repatriates large sums under \u201cmanagement services\u201d contracts that divert funds out of Antigua. <\/p>

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\u201cSandals has a setup where, on top of the regular management in Antigua, there\u2019s an external company billing for \u2018management services,\u2019 funneling millions of dollars out of the local economy,\u201d he stated.<\/p>

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Browne questioned the fairness of Sandals\u2019 arrangements, noting that while the government has allowed the resort extensive concessions, it has also observed practices that he argues minimize Sandals\u2019 local contributions. He called on Sandals to act as a true partner in Antigua\u2019s development rather than solely prioritizing its own profits. <\/p>\n\n\n\n

\u201cOur people deserve to benefit fully from our tourism industry, not to be used as a means to siphon funds to other jurisdictions,\u201d Browne asserted.<\/p>\n\n\n\n

He also suggested that if such practices continue unchecked, Antigua could reexamine and potentially revise policies governing foreign-owned hotels in the future. <\/p>\n\n\n\n

Sandals is taking its tax obligations to the government to court for determination with the government claiming ABST payment totaling US$ 9 million over a 4-5 year period.<\/p>\n

\"\"<\/a><\/div>","protected":false},"excerpt":{"rendered":"

Prime Minister Gaston Browne has issued a stern warning to Sandals Resorts International, declaring that if the hotel chain decides to \u201cspite us and lock down the hotel,\u201d the government will move to \u201ccompulsorily acquire it\u201d and sell it to a new operator. Speaking on Pointe FM, Browne underscored Antigua and Barbuda\u2019s determination to defend […]<\/p>\n","protected":false},"author":3,"featured_media":215951,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-215950","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nPM Browne Warns of Compulsory Acquisition if Sandals Decides to Close Doors Out of Spite - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/pm-browne-warns-of-compulsory-acquisition-if-sandals-decides-to-close-doors-out-of-spite\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PM Browne Warns of Compulsory Acquisition if Sandals Decides to Close Doors Out of Spite\" \/>\n<meta property=\"og:description\" content=\"Prime Minister Gaston Browne has issued a stern warning to Sandals Resorts International, declaring that if the hotel chain decides to \u201cspite us and lock down the hotel,\u201d the government will move to \u201ccompulsorily acquire it\u201d and sell it to a new operator. 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