Sandals Resort Struggling to Stay Open

but that the company is working to keep the Bahamas resort open.
Sandals’ effort involves looking to the Bahamas government for solutions.

"What we have done is put the situation squarely to the government, and asked them to investigate ways in which they can work with us to bring some respite to the impossible economic environment we are facing in the Family Islands," Stewart said.

"So far, we have been encouraged by the government response, which recognizes the problems as well as the need for government and investors, such as Sandals, to work together to arrive at a model to enable quality sustainable tourism to operate and grow in the Bahamas.”

A report in the Nassau Guardian on Sept. 28 said that the resort was in danger of shutting its doors due to high operating costs and lack of air access, among other factors.

"It is a fact that the hotel is facing severe difficulty in continuing operations at Emerald Bay because of the multitude of high costs associated with operating from the Family Islands of the Bahamas. Some of these costs could never have been anticipated and make the Emerald Bay resort unlike any other we operate," Sandals said in a statement.

Stewart acknowledged that high operating costs — including high utility costs and the cost of overcoming a shortage of trained workers on Exuma — and limited airlift "are proving to be unsustainable."

"We firmly believe that the Family Islands of the Bahamas are the future of Bahamian tourism. However, the unusual level of input costs makes doing business there almost impossible, especially during a time of economic downturn," he said.

Sandals opened Emerald Bay in January 2010, following a multimillion-dollar retrofit after purchasing the former Four Seasons resort.

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