Prime Minister of Antigua and Barbuda, Gaston Browne, says the planned five-month closure of Sandals Grande appears to be a play for concessions.
He told the Antigua Observer newspaper that he does not think it is related to the Antigua and Barbuda Sales Tax dispute with Sandals Chairman Gordon ‘Butch' Stewart.Talks have been requested with Sandals on the matter.
He said Sandals recently demanded that the Cabinet waive the duties and taxes on food and beverage.
Browne says the request was deferred considering that the other hotels would have made similar demands resulting in a significant reduction in tax revenues.
The Prime Minister said it was explained to Sandals officials that the government’s finances are in a very precarious position, and if it waived duties and taxes on food and beverage it would create a crisis.
Scores of workers at Sandals Grande will be affected when the hotel closes for the first time in 25 years.
The closure will take effect from September 20.
Meanwhile, tourism interests in Antigua and Barbuda say Sandal Grande's closure will have a ripple effect.
The owner of Adventure Antigua, Eli Fuller, says he will have to lay off workers.
“This is not like a manufacturing plant…. There are so many business that are on the line. My company is an excursion company. I will definitely be laying off people because of this. We are not just talking about laying off people. I will definitely be selling one of my boats, “ said Fuler in an interview with the Antigua Observer