Opposition leader Ralph Gonsalves on Wednesday provided extensive details regarding the relationship between the St. Vincent and the Grenadines and Sandals Resorts International, covering the history of the partnership, current economic impacts, and future investment plans.
Gonsalves highlighted a significant pending investment by Sandals to build a Beaches resort at Mount Wynne. He said the project is described as a $500 million USD (approximately $1.35 billion EC) investment to be completed in two phases. The first phase alone is valued at $350 million and includes 350 “keys” (rooms/apartments).
This investment he said is estimated to represent about 40% of the country’s current nominal GDP.
Gonsalves asserted that the project would create thousands of jobs and generate “tremendous knock-on effects” for sectors such as agriculture, fisheries, transportation (taxis and water taxis), and entertainment.
He said the existing Sandals presence at Buccament was established after the previous resort there folded.
The resort is reported to have a 97% occupancy rate and employs 910 Vincentians.
While initially discussed as a $100 million USD project, the investment at Buccament has grown to approximately $330 million to $350 million as additional suites are added.
Gonsalves credits the “Sandals effect” with quadrupling tourism arrivals to St. Vincent and the Grenadines.
The partnership was framed as a long-term effort rooted in a personal relationship between Gonsalves and the late founder of Sandals, Butch Stewart.
The conversation began in July 2003 on a boat in Jamaica where Gonsalves said Butch Stewart promised to bring a Sandals to SVG once an airport is built.
“After the Argyle International Airport (AIA) opened in 2017, I called on Stewart to fulfill his promise, leading to the acquisition of the Buccament property. Following Butch Stewart’s death, I continued working with his son, Adam Stewart (the current CEO), recently i hosted a dinner for the Sandals delegation at my home in (“Gorse”) to discuss the Beaches project.
Gonsalves defended the use of tax concessions to attract Sandals, arguing they are necessary to secure large-scale foreign investment that might otherwise go elsewhere. He notes that the capital for the current Sandals resort was originally intended for Tobago, but the investors moved to St. Vincent after facing difficulties there.
Gonsalves expressed concern that the current government (referred to as the “Friday government”) has remained silent on the Beaches agreement, questioning whether they intend to honor, amend, or “tear up” the deal.
