‘Millions’ could be lost after Sandals closure, says union

Prime Minister Gaston Browne has bluntly stated that the recently announced five-month temporary closure of the Sandals Grande Antiguan Resort and Spa is “an act of hostility” and a play for concessions.

In an invited comment from the Dominican Republic, the prime minster last night told their state media: “If it is what I think it is, it is clearly an act of sabotage and I am saying that no investor should be able to treat our people in that way”.

Over 700 employees of the top flight Dickenson Bay resort will be affected when it closes for the first time in 25 years.

Many of them expressed “shock” at the temporary closure notice.

“It’s a blow, we did not expect anything like this to happen, it will have a chain reaction on every household because we have a situation in that both breadwinners are working for the same company,” an employee said.

The Antigua and Barbuda Workers Union (ABWU), announced at a press conference yesterday that the five-star resort will close for up to five months, effective 20 September 2017, for “essential maintenance works”.

However, the nation’s leader had earlier told OBSERVER media that the closure was not in any way linked to the Antigua and Barbuda Sales Tax (ABST) dispute.

“That’s a settled issue. It was immoral for Sandals to hold on to trust money collected on behalf of the state. There is no way they could have justified that.”

Browne said the hotel group recently requested a waiver in duties and taxes on food and beverages, but it was deferred “considering that the other hotels would have made similar demands resulting in the reduction in tax revenues”.

The PM said it was explained to the Sandals officials that the government’s finances were in a very “precarious position” and it would plunge the government’s finances into a crisis if duties were waived on food and beverages.

“We had a balanced budget for the past two years due to the increase in revenue and fiscal prudence. In the circumstances, we are likely to run a deficit and would have to borrow to fund the deficit,” Browne said.

Tourism Minister Asot Michael has refused to comment on the matter.

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Original source: Antigua Observer