Prime Minister Gaston Browne has issued a stern warning to Sandals Resorts International, declaring that if the hotel chain decides to “spite us and lock down the hotel,” the government will move to “compulsorily acquire it” and sell it to a new operator.
Speaking on Pointe FM, Browne underscored Antigua and Barbuda’s determination to defend its resources and workforce, saying that his government would not back down from ensuring fair practices in the tourism sector.
Browne’s remarks come amidst mounting tension between the government and Sandals over the company’s tax obligations and employment policies.
Sandals has operated in Antigua for nearly 40 years without paying corporate taxes, due to a series of tax exemptions granted to attract investment.
These concessions were recently extended by another 20 years, allowing the company to operate tax-free until 2044.
Browne accused Sandals of using these benefits without reciprocating through adequate reinvestment in the property or community, describing the resort’s approach as a “colonial construct” that exploits Antigua’s economy and workforce.
Browne also took issue with Sandals’ 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.
He highlighted concerns over Sandals’ management structure, noting that the company repatriates large sums under “management services” contracts that divert funds out of Antigua.
“Sandals has a setup where, on top of the regular management in Antigua, there’s an external company billing for ‘management services,’ funneling millions of dollars out of the local economy,” he stated.
Browne questioned the fairness of Sandals’ arrangements, noting that while the government has allowed the resort extensive concessions, it has also observed practices that he argues minimize Sandals’ local contributions. He called on Sandals to act as a true partner in Antigua’s development rather than solely prioritizing its own profits.
“Our people deserve to benefit fully from our tourism industry, not to be used as a means to siphon funds to other jurisdictions,” Browne asserted.
He also suggested that if such practices continue unchecked, Antigua could reexamine and potentially revise policies governing foreign-owned hotels in the future.
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.
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I fully support my Prime Minister in this endeavour
The problem here is that Sandals have grown so accostom to doing what they please and getting away with it, that they’ve become entitled!
The concessions should not have being extended to 2044 given the 24M that is currently owed to the government of Antigua and Barbuda.
The country has created a monster that they are now trying to tame, but let’s see how this ends.
I am respectfully cautioning the Prime Minister to tone down the rhetoric as it is causing the Management and Staff at Sandals much headaches and heartaches. I do not know the merit or otherwise of all the recent happenings with the Resort property but it is clear that they are heading for a bitter showdown with government. Whilst I am of the firm view that Sandals and every other resort must pay their fair share of taxes to the government, the manner in which the Sandals property is exposed and demonized is leaving much to be desired. More than anything else, Sandals value their brand and this spat with Government is severely damaging their brand and its public image.
Once again, I am firmly of the view that most of these issues can be discussed and resolved in house without this highly publicized fight. At the end of the day, Sandals is providing employment for many of our citizens and even if the Government was to take over the property as suggested, all of its employees would be out of bread for a considerable period of time.
I urge the government to tone down the rhetoric and seek a negotiated settlement and end the hostility now.
@Audley Phillip. It is high time that we stand up for ourselves. And we should not allow anyone to come into Antigua and Barbuda and let them feel we cannot do without them. This is ,Papa Bird’s view. And his time done gone long time. Slavery days done. No more are we uneducated and unskilled. We are not going to stand for the amount of nonsense, we have to put with through the years. They pay, make them pay. Or leave the island, people will eat, people will drink. God nar sleep. Last time I check, it’s God who is in charge of life. So leave the government and let Gaston fight the war with Sandals in our behalf. We will show up when he needs us. We nar go hungry. We need to stop bowing down and kissing them foot and hand to put it nicely. Tun up the heat Mister Prime Minister Browne. We with you all the way!!!!!!!!!!
So for years we have been aware of the short falls of taxing these foreign investors. Meanwhile more and more high profile resorts and gated communities are being built. Are we applying the same standards that we are going after Sandals for?
Has anyone crunched the numbers as to what it will do to the present work force or how long it will take to recover if they pull out? When we are left with hundreds of our people out of work, will the government step in to assist them to pay for the necessities of life, school fees for there children or social issues.
What we can say is there are no mechanisms in place to cover the fallout as of today.
When those employees are out of work and no monies are coming in to support them. It’s will create more poverty, leading to more crime and add to the already lost youths searching for any way to survive. Yes, I said survive.
Maybe someone can tell me how they plan to address this. I keep an open mind. Perhaps before we go down this road we should do the numbers and understand the fallout. One suggestion I have is to leave it the way it is with a time limit for change which would apply to all existing entities that are in the same boat. But more importantly, ensuring from this day forward there is a firm template for all similar entities from this day forward.
Open for discussion.
There a hotel on island giving room that were freshly painted and leaking from roof when rain come…lawsuits waiting..
Gaston, please stop this rhetoric. Let the courts handle the legal aspects of this situation, as every other country in the world does. Making public statements about one of the largest and most successful employers on the island does absolutely nothing except erode the investment fabric of the country. It confirms to international investors that Antigua is a high-risk jurisdiction in which to invest. You are not Donald Trump; the US Secret Services annual budget is 3X’s the entire GDP of Antigua and Barbuda. You are out of your league making statements like that. Please reign it in.
@Joseph Stevens Agreed. How would compulsory takeover even work? Good luck as SRL is a multi-billion dollar conglomerate.
This is not LIAT. This is not the banks. You tried hard to get them for yourself. Now you have your eyes on Butch place? You are overbearing now.
You got Alfa Nero. You want to hang out with the big money guys. Sandals is not available.
NOW GIVE IT A REST. THIS IS NOT A FIGHT YOU WANT.
@ Joseph Stevens, that is the essence of my piece. Such action will easily scare off potential future investors. How this situation is handled might well determine not just Sandals future in Antigua and Barbuda, but how the country is viewed by other investors. We cannot on one hand want to invite investors to participate in our Nation economic well being and on the other hand openly engage them in public fights. It doesn’t send the right message. The macho and bully attitude will only hurt us and the threat of a hostile take over will only make us look like communists.
Investor ,noun, A person or organization that puts money into financial schemes, property etc, with the expectation of achieving a profit.
Stock exchange, noun, a market in which securities are brought and sold
Securities and Bonds , the purpose of a stock exchange is to help in Capital Formation and act as intermediary between companies and investors by providing a common platform for exchange
THRU REPARATIONS we seek JUSTICE from past EXPOLITIVE existence/systems
example colonization.
indigenous adjective, having originated in and being produced, growing, living or occurring naturally in a particular or region or environment
What does it mean if someone is indigenous?
Indigenous People are distinct social and cultural groups that share and collective ancestral ties to the lands and natural resources where they live, occupy or from in which they have been “displaced”
Between 1501 and 1867 nearly, 13 million African people were KIDNAPPED, forced onto European and American(1507an German cartographer named the NEW WORLD America) ships and trafficked across the Atlantic Ocean to be enslaved, abused, and FOREVER separated from their homes(Alkebulan=The Kemetic or Alkebulan history of Africa suggests that the ancient name of the CONTINENT was ALKABULAN. the word Alkabulan is the oldest and only name of indigenous origin.
Alkabulan means “The garden of Eden or mother of mankind” It was used by the Moors, Nubians, Numidians, Khart-Haddans (Carthagenians) and ETHIOPEANS
I mentioned this intro to consider the FOREVER FORIEGN investors legacy..
Can the DIASPORA also , share the industry in shares and bonds scenarios. State/Sovereign Own and Operated even if we return HOME ,Repatriation with Reparation MONIES ..
One Aim One God One Destiny
A thought to continue ….
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