Sandals Resorts International said it is planning to close theBeaches Turks & Caicos Resort indefinitely in 2021 because the Caribbean island'sgovernment raised taxes on the property after declaring it would not.
Sandals earlier this week was vague about the dispute, only sayingthere were "critical and long-standing issues" impacting operationsat the resort. As a result, Sandals said it would close the Beaches resort threetimes over the next two years, with the final closure in January 2021 being indefinite.
Sandals said the issue dates to 2013, when Turks and Caicos' Minister of Financegave the Beaches resort a written declaration that despite an amended hoteltaxation ordinance, the resort's current tax base would remain "untouched."
"Despite these assurances, over four years later,without warning, Beaches received an increased tax assessment and anextraordinary penalty of 10% per month, despite the legal and binding documentationto the contrary," Sandals stated. "Accordingly, each day the hotelremains open the deficit increases. After extensive analysis, it has becomeclear that the only way the Company can stop the increasing deficit is to closeand therefore cease the generation of additional taxes on which penalties canbe imposed."
"We are working through this issue and we are heartenedby the Premier's statement today," said Unique Vacations senior vicepresident of sales Gary Sadler, referring to a statement that Turks and Caicos'premier made in a local newspaper that it was trying to rectify the issue."It is not our desire to close the resort. Resolution is most important."
The Ministry of Tourism of Turks & Caicos declined tocomment on the Beaches situation.
The Beaches is the largest resort on the Turks and Caicos islandof Providenciales with 758 rooms -- about 15% of the island's 5,000 totalrooms.
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Gay Nagle Myers contributed to this report.
