Barbados’ prime minister announced at a conference this week that her government is in the process of designating a “select committee” to review concessions given to businesses in the hotel and tourism sector.
The announcement from Mia Mottley follows news of an impasse with all-inclusive resort operator Sandals Resorts, regarding concessions granted by the previous administration.
In an address at the Panel Discussion Series, hosted by Boston University’s Global Development Policy Centre and the United Nations Conference on Trade and Development (UNCTAD) in Washington D.C., Mottley reportedly referred directly to Gordon “Butch” Stewart, Sandals’ chairman, saying she informed “a large investor in the Caribbean” that “we don’t run a company, we run a country, and we don’t have the ability to play fast and loose with egregious requests.”
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Additionally, Mottley commented that she considers the rule of law paramount because Barbados has one asset, its reputation.
She added: “The last government awarded tax incentives that were exceedingly egregious over a 25-year period, fully, and then another 15 years after that. They wanted even more on top of that.”
Progress reportedly stalled this month on Sandals’ Beaches resort project in Barbados, under construction on the site of the former Almond Beach Village in St. Peter, due to the concessions impasse.
Sandals Barbados and Sandals Royal Barbados are the current resorts in the country, both being described by tourism stakeholders as instrumental in Barbados’ improved visitor arrivals over the past two years.
In a statement, Stewart said, “With respect to the current situation, we wish to clarify that we are not asking for anything more than what was promised. The Beaches project, at over $420 million, would have represented not only our largest single one-time development but the largest long-term hotel project in Barbados.
Stewart added, “We fully respect the government’s position in this regard. The fact is we know that both sides worked very hard to make this project a reality.”
