Prime Minister Gaston Browne has issued a stern warning to Sandals Resorts Worldwide, declaring that if the lodge chain decides to “spite us and lock down the lodge,” the federal government will transfer to “compulsorily purchase it” and promote it to a brand new operator.
Talking on Pointe FM, Browne underscored Antigua and Barbuda’s willpower to defend its sources and workforce, saying that his authorities wouldn’t again down from guaranteeing honest practices within the tourism sector.
Browne’s remarks come amidst mounting pressure between the federal government and Sandals over the corporate’s tax obligations and employment insurance policies.
Sandals has operated in Antigua for practically 40 years with out paying company taxes, as a consequence of a sequence of tax exemptions granted to draw funding.
These concessions have been just lately prolonged by one other 20 years, permitting the corporate to function tax-free till 2044.
Browne accused Sandals of utilizing these advantages with out reciprocating by way of enough reinvestment within the property or group, describing the resort’s method as a “colonial assemble” that exploits Antigua’s financial system and workforce.
Browne additionally took situation with Sandals’ method to general enterprise conduct in Antigua, suggesting that the resort chain has leveraged its place for years, typically with out regard for the pursuits of the area people.
He highlighted issues over Sandals’ administration construction, noting that the corporate repatriates massive sums below “administration companies” contracts that divert funds out of Antigua.
“Sandals has a setup the place, on prime of the common administration in Antigua, there’s an exterior firm billing for ‘administration companies,’ funneling thousands and thousands of {dollars} out of the native financial system,” he acknowledged.
Browne questioned the equity of Sandals’ preparations, noting that whereas the federal government has allowed the resort intensive concessions, it has additionally noticed practices that he argues decrease Sandals’ native contributions. He known as on Sandals to behave as a real companion in Antigua’s improvement quite than solely prioritizing its personal income.
“Our individuals deserve to profit totally from our tourism business, not for use as a method to siphon funds to different jurisdictions,” Browne asserted.
He additionally steered that if such practices proceed unchecked, Antigua might reexamine and doubtlessly revise insurance policies governing foreign-owned resorts sooner or later.
Sandals is taking its tax obligations to the federal government to courtroom for willpower with the federal government claiming ABST cost totaling US$ 9 million over a 4-5 12 months interval.