One of the Caribbean’s most prominent resort operators, Sandals Resorts International, has reached a binding agreement to pay the Antiguan government $6.5 million to resolve lingering tax disputes, clearing the path for a $100 million expansion of its flagship Sandals Grande Antigua property. Antigua and Barbuda Prime Minister Gaston Browne confirmed the settlement during his weekly public radio address Saturday, noting that recent talks with the resort’s top leadership were collaborative and productive across a wide range of operational and strategic issues.
“We had some outstanding issues with taxes and we’ve settled for $6.5 million, so they’ll be paying the government $6.5 million shortly,” Browne told listeners. “From what I understand, the funds have already been placed in an escrow account to finalize the process.”
The negotiations covered more than just outstanding tax obligations, with discussions spanning resort operations, new capital investment, and worker welfare, according to the prime minister. The centerpiece of the planned growth is a large-scale expansion that will add more than 100 new guest rooms to the existing property, including 16 luxury overwater bungalows targeted at high-net-worth international travelers.
Antiguan officials have already given the project formal approval, but imposed a key zoning requirement to preserve public access to the island’s popular beaches. Instead of siting the overwater accommodations in the central stretch of the resort’s beachfront, the bungalows will be located at the southern end of the property near an existing groyne, a structural barrier designed to reduce coastal erosion. This zoning adjustment ensures the main beach remains open and accessible to other visitors and local users, Browne explained.
“What we’ve said to them is that they cannot build those overwater bungalows in the middle of the beach,” the prime minister said. “They’ll be going southwards towards the groyne so that they do not impede the use of the beach by other users.”
Browne emphasized that the expansion aligns with the government’s broader tourism strategy, which prioritizes growing overall accommodation capacity while upgrading the country’s product offerings to attract higher-spending tourists. He pointed to the proven popularity and profitability of overwater bungalows in iconic luxury destinations such as the Maldives and Bora Bora, where these exclusive accommodations can command nightly rates in the thousands of dollars.
“These units provide a very high yield,” Browne noted. “They help to enhance the tourism product and place us in a more competitive position in the global luxury travel market.”
Beyond infrastructure and expansion, talks also centered heavily on improving employee support at the resort. Browne said he raised the issue of working parents with young children, who often face barriers to employment when they lack access to affordable childcare. He proposed that Sandals establish an on-site crèche (daycare facility) to support local and regional staff members, eliminating a major obstacle to consistent work participation.
To the prime minister’s satisfaction, resort executives responded positively to the proposal. “They have agreed, actually. They see it as a good idea and they say they’ll definitely look into it and see how they can put that in place as part of the infrastructure to facilitate the staff,” Browne reported. He added that the on-site childcare facility would boost local workforce participation and help employees better balance their professional and family responsibilities.
During the discussions, Sandals leadership also shared details about its current compensation practices for local workers. According to data provided by the company, entry-level employees earn more than $4,000 per month when including gratuities and additional earnings beyond base wages. Browne acknowledged that this figure came directly from the resort, but called the reported pay level “decent” for Antiguan workers.
Sandals also reported that it contributes more than $50 million annually to Antigua and Barbuda’s local economy through employee wages, local procurement of goods and services, and regular taxes and government fees. As the country continues to see steady growth in international visitor arrivals, the expansion will increase the resort’s contribution to the national tourism sector, which is the backbone of Antigua and Barbuda’s economy, and grow the country’s overall available room stock.
The project will now move forward with detailed planning and mandatory environmental assessments before construction begins. Browne reiterated that the government is committed to fostering responsible private tourism investment that balances economic growth with two core priorities: protecting public access to the country’s valuable coastal assets and safeguarding the rights and interests of local workers.