Commissioner Heyliger has a point. Whether or not The Westin St. Maarten Dawn Beach Resort and Spa and Sonesta Maho Resort can derive legal rights from "comfort letters" they were issued by the Executive Council for possible temporary room tax exemptions is one thing, whether government should honour its commitments quite another.
It is true that these "promises" have no basis in law at the moment, as the Room Tax Ordinance allows no such exemptions. On the other hand, the two largest hotels in St. Maarten were assured of the intention to change that ordinance as part of the effort to attract international hotel brands.
If investors make and act on agreements with government that subsequently are not kept, it sends the wrong message. While the case is still in court, it involves not only a legal issue, but one of keeping one's word.
It is not clear what will happen if no solution is found, in terms of possible counteraction by the resorts should they be forced to pay up. The Executive Council is said to be working on a solution, but so far has presented none.
One possible compromise is to have the resorts pay only part of the existing room tax debt, while the Room Tax Ordinance also could be amended to still make good on the "statement of intention." After all, the comfort letters involved were signed off on by the entire Executive Council, including the Lt. Governor.
Also considering the still difficult economic situation and especially the less-than-rosy hotel occupancy figures both last year and this season, government would do well to sit at the table with the two resorts and get down to business to somehow put this matter behind them, so that the focus can be on continued investments and safeguarding the future of the Dutch side's two major brand-name hotels, as well as that of their employees and the local tourism economy in general.
