Tuesday, August 13, 2024
By FAY SIMMONS
Tribune Business Reporter
jsimmons@tribunemedia.net
THE timescale for plans at Sandals Emerald Bay does not match the one given by the government, according to the general manager at the resort.
Deputy Prime Minister Chester Cooper gave a timeline of six to eight months for the construction phase of the project, which is to rebrand to the Caribbean resort chain of Beaches, but Sandals representatives say construction will take up to 15 months.
Jeremy Mutton, general manager at Sandals Emerald Bay, said the resort plans to begin its 12 to 15-month rebrand once it has obtained all required permits this fall.
Speaking to Tribune Business, Mr Mutton explained the start date for the rebrand will commence once all labour agreements and permits have been finalised by the government.
“We do plan the project commencing in the fall of 2024, but that is really contingent on the government’s cooperation in terms of the necessary labour agreements and permits,” said Mr Mutton.
“Assuming that we could start in the fall of 2024, we then anticipate, based on our previous experience, between 12 and 15 months for that project.”
Mr Mutton explained the conversion from a Sandals all-inclusive couples resort to a family friendly Beaches destination is “not something that happens in a very short frame of time”.
He said the decision to rebrand Sandals Emerald Bay was was made due to high demand for a family centered all inclusive resort.
He said: “To convert a Sandals Resort to a Beaches branded resort is really not something that happens in a very short frame of time, you know that that takes a very long time to come to fruition.
“We decided, as a company, to convert to a Beaches because of the business demands over the last few years. We have expanded the Sandals portfolio, which is the couples portfolio. We have new resorts in Jamaica, Curacao, St Vincent, and the Grenadines. But the Beaches brand, we haven’t kept up and the demand is there for that Beaches brand.”
Mr Mutton maintained the conversion was not due to to the Department of Inland Revenue (DIR) claim that the company only reported 40 percent of revenues earned and owes $30.844m in allegedly unpaid VAT and business licence fees combined.
He said the tax dispute is “under legal review”, but plans to convert to Beaches has been in the works for “a very long time”.
He said: “The tax matter is under legal review. But really, the plans to convert Sandals Emerald Bay that has been going on for a very long time.”
He said Beaches is projected to have a “significant positive impact” on the local economy once it opens as it will accommodate more guests, but the Sandals resort closure during the transition will negatively impact the island.
“In terms of the Beaches resort, long term, it will have quite a significant positive impact, obviously it will bring more tourists,” he explained.
“At Sandals, we have couples. But with Beaches, you would have those couples coming with their children. So by virtue of that, you will have a lot more persons, not only staying on the resort, but travelling to the resort with the public transportation, the tours, etc. So inevitably, there would be a greater economic impact.
“Unfortunately though, the transition to a Beaches does necessitate a closure, and unfortunately, during that time, conversely, there will be a negative impact in terms of the economy.”
He also anticipated that airlift to Exuma will decrease during the transition period as the resort accounts for 40 percent of the air traffic to the island but is confident it will rebound.
“Sandals is the main driver as far as the international airlift is concerned, so during a period of closure, I have no doubt that that is going to negatively impact the airlift,” said Mr Mutton.
“That’s why it is important that we reach those agreements with the government, because it’s in everyone’s interest that we start this project as quickly as possible. The quicker we can start it, the quicker we can open as a Beaches Exuma.
“Certainly, I do believe once we do open as Beaches Exuma, the airlift will bounce back, and I’m sure what will actually be greater than what it is now but it is going to have a negative impact in the meantime.”
For the resort’s employees, Mr Mutton confirmed many will be dispatched to Sandals Royal Bahamian and Beaches Turks and Caicos during the transition. Others participated in a job fair last week to obtain employment during the closure.
He said existing employees will be given priority for positions at Beaches Exuma, which will need more employees to accommodate the increase in visitors and activities.
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