CHARLESTOWN, Nevis – MANAGEMENT of Nevis’ premier hotel, the Four Seasons Resort, has agreed to pay monies owed in Accommodation Taxes to the Nevis Tourism Authority (NTA), following threats by the island’s Premier, the Hon. Joseph Parry, at a public meeting Friday night (Oct. 5) in Fountain Village.
A release from the Premier’s Press Secretary stated that Parry announced yesterday (Oct. 8) that he had received a call from Four Seasons General Manager Andrew Humphries on Sunday promising to make the payment to the NTA this week.
According to the release, “The funds in question originate from a 2% Accommodation Tax that all hotels and tourism-related business places are required to pay since January 2012. The authority comes from a Bill that was passed in the Nevis Island Assembly in November 2011. All hotels on Nevis agreed to collect and pass on the levy to the NTA with the exception of the Four Seasons Resort-Nevis, which has refused to pay the tax despite the legislation. The Four Seasons argued that the government exempted them from any taxation as a result of a policy.”
It also stated that in subsequent discussions in 2012, the Four Seasons Resort agreed to pay on condition that they were allowed to increase their Environmental Levy; a government tax that is collected from the guests at the Four Seasons Hotel to pay for the defence works built up in the sea in front of the Four Seasons Resort Great House to protect the property from storm surge.
The government agreed on the basis that they split the increase on the Environmental Levy so that the NTA would have money to carry out its business of promoting the destination. But the Four Seasons increased the Environmental Levy and ignored the government.
Subsequently, in June, the Four Seasons Resort stated that they would collect the two percent Accommodation Tax from their guests and pass it on to the NTA by July 1, 2012, but over three months had passed and they did not honour the agreement.
Last week, however, Premier Parry found out that the Four Seasons had withheld the money, claiming the government owed the Resort some EC$100 000.
Consequently, Parry called Humphries on the matter, who stated that he was unaware of that decision by Four Seasons Resort.
This led to the Premier’s warning knell and ultimatum at the public meeting, where he said, “…And the Four Seasons say that the government owe them some money and they ain’t gun’ give us the money they owe the Tourism Authority until they get the money from government. But listen here, the money that they owe we is not their money! They are holding the Trust for the NTA. Well, you know, I tell them…give the money, and next week if that money is not given I will give you 48 hours. Forty-eight hours next week, and let me tell you something.
“At the end of the 48 hours, if the money ain’t there water gone, electricity gone and their engine gun’ can’t run and everything gone…nothing could come through custom. That is what I plan for them…and Judy you know I mean it, because they say a weak, but a weak with me old colour, a love me old colour, but when it come to foolishness I strong like a lion. A strong like a lion! I am sending a warning to them…I am sending a warning to them tonight. Come next week…when a say 48 hours you better give us our money in 48 hours. Let somebody go and tell Four Seasons that Joseph Parry say so in Fountain tonight.”
The issue was however settled yesterday, as Four Seasons’ management had offered to pay the monies owed by cheque.
In an interview with WINN FM yesterday, Premier Parry said, “Sunday, the General Manager called me and told me they would have the money available to us today Monday and this is what I wanted. I knew that once they realized I was serious they would pay the money up.”
He indicated that additional monies are being owed by the Resort.
“In addition to that, and I did not even know this, they were holding up property taxes and my understanding is that they owe up US$200 000 in property taxes to the government... They are not paying off US$200 000 but they are offering a cheque, I understand, of about US$50 000. So, my actions have borne results and this is what I wanted.”
Premier Parry declared that the matter has been going on for nine months; therefore, some drastic action had to be taken.
