Revisions to Hotel Business Ownership Laws are Coming

There are expected changes to the organizational structure of companies that own and operate hotels in Antigua and Barbuda. So says Prime Minister Gaston Browne who said that the move is aimed at eliminating the use of shell companies to evade liabilities to workers, particularly when these companies enter receivership.

PM Browne addressed this issue during the Browne and Browne show, focusing on the ongoing situation with Sandals Resort and Spa. The Inland Revenue Department (IRD) revealed that the company owes the government approximately $27 million in ABST that it collected from guests.

Furthermore, Sandals has taken legal actions against the government concerning this assessment, which covers the years 2017-2021, with 2022-23 still pending. PM Browne explained that there are multiple companies involved in the hotel ownership, but the current employer of the hotel’s staff is distinct from the entity that owns the assets.

He said this poses a risk for workers in case of receivership, as they would have no assets to claim for severance. The Prime Minister criticized this practice and called for reform, also expressing his disappointment with the Antigua and Barbuda Workers Union (ABWU) for their failure to address the issue.

In response to a statement from the ABWU, PM Browne emphasized that instead of attacking the government, the union should collaborate with it to rectify these concerns. He stressed the importance of unity among Antiguans and Barbudans when confronting abuses, regardless of political affiliations.

He also lamented the union’s focus on partisan conflicts rather than advocating for workers’ rights, calling for a cooperative effort to improve the situation for everyone involved.