Prime Minister Gaston Browne at the 2025 Caribbean Investment Summit (photo by Everton Barnes)
The initial plan by the government to allocate $75 million towards the Jolly Beach Hotel by way of investment was first revealed during the Cabinet press briefing last week. And now, Prime Minister Gaston Browne has provided more details on the matter.
Although the decision has been widely criticized by the opposition, PM Browne maintains that this move is intended to secure the organization’s future stability.
In his proposal, the Prime Minister detailed that the government will address its outstanding debts to the Social Security Scheme by issuing a bond. A significant portion of the proceeds, projected at around $75 million, will be directed toward upgrading Jolly Beach Hotel, a key player in the local tourism industry that has already proven to be profitable.
Browne emphasized that Social Security Schemes globally cannot rely solely on contributions from current workers to fund pensions and benefits, especially as the number of pensioners continues to rise at a faster rate than contributors. Ideally, a ratio of ten contributors for every pensioner is the global standard; however, Antigua and Barbuda has never reached this benchmark.
Despite facing criticism from former UPP Political Leader Harold Lovell, the Prime Minister’s proposal has garnered support from various quarters, including a favorable letter published by an anonymous observer in Antigua.news.
The letter highlights that Jolly Beach currently generates over $1.5 million annually, with the potential to double this revenue to $3 million through upgrades and better management, which would benefit Social Security.
The investment aims to diversify Social Security’s portfolio, create jobs, enhance tourism, and strengthen the economy.
Browne responded to Lovell’s claims, asserting that he mischaracterized the investment as risky. Instead, Browne emphasized that the goal is to ensure sustainable revenue for pensions while revitalizing the tourism sector.
He criticized Lovell’s past as finance minister, noting a 25% economic decline in Antigua and Barbuda from 2009 to 2014 and arguing that the recovery did not occur due to Lovell’s financial decisions, which he labels as failures.
This is exactly the kind of forward-thinking investment we need. Social Security can’t survive on worker contributions alone. Diversification is the key.
Why are we using pension money to fix a hotel? That’s risky and sounds like poor planning by the government.
While I am not completely sold on this proposed investment, one would think that, with 75 million dollars, knocking down the old structure and building a new one would be in order. Afterall, why pour new wine into an old wine skin (facility)?
Given the historical challenges with Social Security’s finances, how will this investment specifically guarantee increased, sustainable returns that truly safeguard pensions for the long term, beyond just ‘potential’?
I am not against this initiative, but I have many questions. It always seems to me that the SS is the entity that the government uses as its scapegoat. Let us see what will happen with this one.
So what happened to the previous plans to build out the hotel.
The prime minister is always on a mission to a successful plan. His brain is always at work on stuff. I disagree with the sale of the Alfa Nero tho. Wasn’t a good plan