By LYNAIRE MUNNINGS 

Tribune Staff Reporter 

lmunnings@tribunemedia.net

SANDALS executive chairman Adam Stewart said the resort is making “great progress” in discussions with the government over claims of underreported revenues at Sandals Emerald Bay, which have led to demands for $30.844m in unpaid VAT and Business Licence fees.

Sandals is contesting assertions from Bahamian tax authorities that its Emerald Bay resort reported only 40 percent of its revenue. An audit revealed that Sandals allegedly under-reported over $284m in income from 2017 to 2022. The Department of Inland Revenue argues that Sandals should report the full gross income from guests, which would result in higher VAT and licence fees owed.

Two days after the tax claims were revealed, Sandals announced the temporary closure of the resort on August 15 to facilitate its redevelopment into Beaches Exuma. The resort said the closure is necessary to ensure the safety of staff and visitors.

The closure impacted around 425 employees, with some being redeployed to roles at Sandals Royal Bahamian and Beaches Turks and Caicos, while others were assisted in finding new employment at a job fair in August.

The Trade Union Congress and its affiliate, the Bahamas Hotel, Maintenance and Allied Workers Union (BHMAWU), previously condemned Sandals Royal Bahamian for its abrupt closure in 2016, describing it as a move to undermine the union. At that time, Sandals argued that the closure, which led to 600 layoffs, was necessary for $4m in essential repairs at the Cable Beach property. This incident marked one of several times Sandals has made sudden closures.

Regarding the redevelopment, the government indicated that construction would take six to eight months. However, Mr Stewart confirmed yesterday that construction has yet to begin, noting a revised timeline of 12 to 15 months.

“We’re hoping to be, you know, by the end of the year, we’re putting it to tender, the conversion works, and we’re hoping 12, 14, 15 months,” he said. “There are ways to make it move faster, but at this stage, that’s kind of the timeline that we’re working with. There’s a skeleton crew there today maintaining the golf course and the facilities that are there.”

Mr Stewart defended the rebranding of Sandals Emerald Bay into a Beaches resort, saying that it better aligns with the needs of families and the Exuma community. He expressed confidence that this change will enhance the resort’s appeal and contribute positively to the vision of Sandals Resorts International, with more Beaches properties planned for the future.