GREAT BAY--The developers of the planned Planet Hollywood Resort and Casino at the former Great Bay Beach Hotel site have confirmed that outstanding requirements from the Ministry of Public Housing, Spatial Planning, Environment and Infrastructure (VROMI) have now been secured. The project is currently awaiting a decision from the Ministry of Finance on a requested renewal of its tax holiday regime before construction can commence.
Planet Hollywood, which purchased the Great Bay property in 2017, obtained a tax holiday in 2018. That incentive period has since expired. The developers state that they were unable to make use of the facility due to the COVID-19 pandemic and a legal challenge that delayed the project for several years.
The first phase of the project is designed to deliver approximately 450 rooms, representing an investment of about US $200 million. A second phase, consisting of luxury villas and apartments, is projected to add another US $100 million in investment. Together, both phases are expected to generate hundreds of construction jobs and more than 500 permanent positions once the resort becomes operational, as well as indirect employment for taxi operators, tour companies and other service providers across the tourism sector.
Given the scale of the investment, Planet Hollywood emphasizes that the requested extension of the tax holiday is critical to the viability of the project. The company notes that it will be required to import significant quantities of equipment and materials that are not available on St. Maarten and may also need to recruit specialized workers who cannot be sourced locally. These additional costs, combined with the capital already committed, mean that fiscal incentives are seen as an essential condition for breaking ground.
The Ministry of Finance has previously indicated that the request for renewal of the tax holiday is under review by Fiscal Affairs. Any decision must follow the completion of that process. In earlier discussions, both ministries and the developer agreed that VROMI’s permitting responsibilities should be finalized before or in parallel with the formal renewal of the tax holiday, in order to avoid triggering the countdown of the incentive period before construction is ready to begin. With the VROMI component now resolved, attention has shifted to the pending fiscal decision.
Planet Hollywood currently operates 27 hotel properties in the Caribbean region. St. Maarten is the only jurisdiction where it has taken this length of time to secure all clearances required to move into the construction phase. Despite the delays, the group highlights its continued commitment to the island. The project is carrying an estimated annual cost of roughly US $500,000 for maintaining the open site at the former Great Bay location, including security and holding costs, while it awaits the final green light.
Industry stakeholders as well as local MPs have warned that if the fiscal process remains unresolved, St. Maarten risks losing a high profile tourism investment that could strengthen the country’s competitive position in the region. They point to the potential for increased government revenues over the life of the project, once the tax holiday period ends, as well as the broader economic spin offs during both construction and operation.
https://tribune-site.webflow.io//articles/planet-hollywood-awaits-renewed-tax-holiday-secures-vromi-requirements
