How will Sandals React to negative publicity here?

Sandals Resorts International has established itself as a major contributor to the Caribbean economy by maintaining resorts throughout the region. Its most recent investment would have been in the Tobago project that last month was declared a no-go. In the announcement from SRI CEO, Gebhard Rainer, featured in the Trinidad media, it was emphasized that the government had nothing to do with the decision. 

Rainer actually commended the country’s prime minister for his “unwavering support, the consistent transparency and frankness.” However, not enough, it would seem, to carry on with Trinidad and Tobago’s first ever SRI resort. Rainer was quoted saying: “The reason for the withdrawal is the constant and ongoing negative publicity and media coverage we have received over the last two and a half years, since the inception of the project  . . .” 

The cited negative publicity included allegations that Sandals breached environmental laws and practices, signed unpublicized agreements with government, and secret negotiations. Earlier this month, SRI also announced its periodical closures in September to October 2019 and 2020, and its indefinite closure from January 2021 of its Beaches resort in Turks and Caicos. The company blamed the closure on “several critical and long-standing issues which have impacted our operations over the past several years.”  

The statement came after months of wrestling with the TCI government about taxes. Sandals explained: “In 2017, the Tax Department, in disregard of the prevailing legally binding agreements in writing, unilaterally and unlawfully imposed additional taxes and penalties at a preposterously crippling rate of 10 percent per month, compounded, which translates to more than 213 percent per annum.”

The recent withholding tax exemptions granted SRI by the Saint Lucian government are referenced by the opposition at every opportunity. Additionally, after SRI boasted yet another major investment in Saint Lucia with a ground-breaking ceremony next to Sandals Grande, The Landings took related legal action against the Development Control Authority.  

The potential fourth Sandals resort has been on hold since November 2018. The last court proceeding was on December 7, 2018 and is expected to continue later this month. The question now is: What will be Sandals’ reaction, considering the negative publicity in Saint Lucia, much of it from the company’s arch enemy since their battle over the Labour Party’s Labour Code? Might Sandals repeat in Saint Lucia what the company has done in Tobago?  

Last year Sandals promised that resort number four in Saint Lucia remained “a very important project”. This week an official from Sandals claimed the only setback was the on-going legal matter with The Landings. He said, “Beyond that, the project remains on hold; no matter what happens, it will take some time before we can have it up and running again.” Sandals has recently confirmed that its Saint Lucian project will not suffer the fates of Tobago or Turks and Caicos. At any rate, it’s still a go, if only for now!