Sandals Resorts International has agreed to pay the Antigua and Barbuda government $6.5 million to settle outstanding tax-related issues, as the company simultaneously advances plans for a major expansion of its local property that will add more than 100 rooms and a new overwater bungalow component.
According to Antigua News Room, Prime Minister Gaston Browne disclosed the settlement during his weekly radio programme on Saturday, describing recent talks 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."
Browne said senior Sandals representatives, including members of the resort's executive team and legal advisors, met with him recently to discuss the company's operations, planned investments and employee welfare.
The most significant item on the agenda was a proposed expansion of the Sandals Grande Antigua property estimated to cost more than US$100 million. The project will add over 100 rooms to the resort and include approximately 16 overwater bungalow units designed to attract high-end visitors.
The government has approved the development but stipulated that the overwater accommodations be positioned toward the southern end of the property, near the groyne, rather than in the centre 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 as a necessary step toward increasing Antigua and Barbuda's tourism capacity and attracting higher-spending visitors. He pointed to the success of overwater bungalows in destinations such as the Maldives and Bora Bora, noting that such units 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."
Discussions also covered the welfare of resort employees. Browne said he raised concerns about workers with young children and proposed that Sandals establish an on-site daycare facility to support staff.
"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.
The prime minister said Sandals executives responded positively to the proposal, indicating they would look into implementing the facility as part of the resort's infrastructure.
Browne also relayed information provided by Sandals regarding employee compensation, noting that company representatives said entry-level workers, when gratuities and other earnings are factored in, 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 acknowledging the figures came from the company itself.
Sandals also reported contributing more than US$50 million annually to the local economy through wages, purchases and various taxes and fees.
The prime minister said the government remains committed to supporting responsible tourism investment while preserving public beach access and protecting the interests of local workers. The proposed expansion is expected to move forward following the completion of all planning and environmental requirements.
