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.
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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.
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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.
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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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