TCI News

TCI: Press Statement from the Leader of The Opposition – Boomerang Politics

Published

8 years ago

July 25, 2018

Deandrea Hamilton

#Providenciales, July 25, 2018 – Turks and Caicos –

OFFICE OF THE LEADER OF THE OPPOSITION

N.J.S. Francis Building

Pond Street, Grand Turk, Turks and Caicos Islands

Telephone: (649) 338-3706, Email: cwmisick@gov.tc

Providenciales Turks and Caicos Islands – July 24, 2018

Press Statement from the Office of the Leader of the Opposition

Service Charge and Boomerang Politics.

The following opinion by the Leader of the Opposition appeared in Volume 31 No. 26 page 10 of Turks & Caicos Weekly News – see link

https://issuu.com/tcweeklynews/docs/july_1-7__2017_-_all_pages.

Service Charge Debate – Deceit or naivety

The confusion around the equitable distribution of what has become known as ‘service charge’ is caused by a combination of the inexcusable deceit and naivety by some politicians who have misled hospitality workers and the public for their own ends. On this issue, the Premier prevarication is most offensive to a block of voters who she unequivocally pledged to ensure that 100% of the service charge is given. Since it is now clear that she has wised up to the fact that that promise was impractical, and not one that she can deliver – the poetry of campaign must now give way to the prose of governing. That requires a clear policy decision anchored in legislation.

The truth is that today’s ‘service charge’ defined in the Ordinance as ‘Any amount of money charged over and above the price of accommodation in a hotel, or the selling price of a meal or intoxicating liquor or beverage purchased by a customer, for service to a guest or customer, in a hotel or restaurant, but does not include any tax to be paid under any ordinance’ is an amalgamation of two add-ons to the published rates for the provision of hospitality services provided by some establishments prior to January 2004. In any case there were no obligations by establishments to collect or pay neither gratuity nor service charge to employees; and in fact, all-inclusive properties did not collect nor pay gratuity to employees before 2004.

To remove subjectivity from the system the Ordinance made it mandatory that all-inclusive properties levy and pay a 10% service charge to their employees. At the same time, recognizing the practice of other categories of hotels (that levied a 10% charge broken down into a 6% gratuity and a 4% resort fee) it left it to the discretion of management of the individual hotels to collect a service charge. However, the Ordinance does provide that if a service charged is collected 60% must be paid to employees. This reasoning is flawed – unless of course those establishments levy a charge sufficiently above 10% so that the 60% equate to the rate paid by the all-inclusive. Considering that all employers are required to pay the minimum wage whether all-inclusive or otherwise, and assuming parity of wage rates and other benefits across categories of employment obtains those persons working in non-inclusive hotels may very well be at a disadvantage.

The existing legislation is clear that the service charge levied by non-all-inclusive hotels is intended to be shared at minimum in the ratio 60:40 to employees and the business – reflecting the practice of many hotels at the time the ordinance was introduced. Establishments that are not adhering to the law are committing an offence. On the other hand, there is much confusion over the definition of the terminologies: gratuity, service charge and tips.

It is therefore necessary to contextualize the argument and suggest possible solution by defining the terms. Gratuity (tip) “a voluntary payment by patrons to service professionals as an expression of gratefulness for extraordinary service”. Albeit the subjectivity of the judgement of patrons impacts the aggregate amount of gratuity available to be shared among the staff. While a service charge is also additional payment on a service provided by a service professional it is mandatory rather than elective and may or may not deliver additional pay to the service professional who provides the service unless required by law.

In my view, the provision of hospitality services is a profession like any other, and it is right that it should not be left up to the discretion of patrons or hotel operators to, effectively set the pay for hospitality employees. Therefore, the idea of legally establishing an add-on to guests bills ringed fenced for hospitality workers is reasonable. On the other hand, a cover charge to a hospitality service establishment is standard in the industry; additionally, in a high-end tourism destination where customized service is demanded the level of hidden cost to a business is high; Allowance should also be made for non-cash benefits to employees including meals, transportation, uniform and training. Under those circumstances businesses not only earn a legitimate claim to a portion of the service charge but it is necessary for them to compete and prosper. We must remember that our survival depends on our ability to compete.

Finally, the current range of service charge in the TCI varies from 10% to 18% depending on the establishment – with all-inclusive properties pegged at 10% of which 100% goes to the employee. It therefore stands to reason that the amount paid to employees ought to be synchronized at an effective rate of 10% across categories of properties. This effective rate may be achieved through benefits in cash and kind. A commonsense compromise among all stakeholders encourages productivity, improve customer satisfaction and improves the bottom line of the business. Employees should not have to wait until Christmas for the necessary adjustment. The necessary amendment to the legislation to achieve a win-win solution should be done imminently.

Stifling of debate by the majority on issues it deliberately misrepresented does not of itself dispose of the problem, especially one that relates to the life-blood of the economy and the livelihood of people they purport to represent. Tourism and the welfare of hospitality workers should never be treated as a game of cricket. While I understand that the Premier faced batting from a self-inflected sticky wicket it is disappointing that she pulled up her stumps instead of defending her wicket.

Boomerang Politics

Fast forward to July 2018 the Premier created a smoke screen to walk back her ridiculous promise when in fact little will change for the hospitality worker, except now the discretion levy a service charge is remove and replaced with a legal obligation to do so. There will be no real appreciable change in the take home pay of an employee. The share of the service charge paid to employees by an establishment now applying a service charge of 15% to its bills, the proceeds of which is split 60:40 equates to 9% of the total bill; by the same token, an establishment charging 18% service charge pays its employees 10.8% of the total bill. Under the government’s proposal employees in the 15% scenario gets an uplift of 1% and employees in the 18% scenario losses 4/5^th of 1%

The decision by the Government to cast in legislation a common rate for participation by all hospitality workers adapts my opinion in July 2017 and is the right thing to do. The bill is otherwise unnecessarily intrusive and in principle interferes with the invisible hands of the free market to the extent that it seeks to restrict what individual operators can charge for adding extraordinary value to their service delivery. This makes the assumption that service quality is homogeneous and it encourages the commoditization of the service that otherwise thrive on differentiation.

Without making the poacher the game-keeper, the Government having waited this long should take seriously the advice of all stakeholders including operators, customers and workers to ensure unintended design flaws do not negatively impact the industry causing another boomerang effect.

Finance

TCI Financial Services Opens Debate on Cryptocurrency Rules

Published

2 days ago

May 12, 2026

Deandrea Hamilton

Turks and Caicos, May 12, 2026 – A new era of digital finance regulation could be on the horizon for the Turks and Caicos Islands, as the Financial Services Commission moves to establish a legal framework for virtual assets and cryptocurrency-related businesses.

The TCI Financial Services Commission on Friday launched a public consultation on its proposed Virtual Assets Business Bill, 2026, legislation designed to regulate virtual asset service providers, stablecoin issuers and other digital asset activities operating in or from the territory.

Globally, governments and regulators have been racing to catch up with the rapid growth of digital currencies, blockchain technology and online financial platforms. Concerns over money laundering, cybercrime, fraud and the collapse of poorly regulated crypto exchanges have pushed jurisdictions to tighten oversight while still trying to attract financial innovation and investment.

The proposed TCI bill appears aimed at positioning the territory within that evolving international framework.

According to the FSC, the legislation is aligned with international standards and guidance from bodies including the Financial Action Task Force, International Organization of Securities Commissions and the Financial Stability Board.

The Commission said the bill would introduce a “comprehensive licensing, supervisory, prudential and enforcement framework” for the sector. The proposed law includes anti-money laundering and counter-terrorism financing obligations, cyber resilience requirements, enforcement measures and even a regulatory sandbox intended to support innovation.

Among the notable features are proposed reserve and governance rules for stablecoins, which are digital currencies typically tied to traditional assets like the US dollar. The draft legislation also outlines exemptions for certain technology providers and closed-loop token systems.

The FSC said the consultation period is intended to gather public and industry feedback before the bill is submitted to Cabinet next month. Written submissions must be received by June 8, 2026.

The consultation paper and draft bill have been published on the FSC website for public review.

Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.

News

Conch Farm Site to become New Home for Watersports Operators

Published

2 days ago

May 12, 2026

Deandrea Hamilton

$12 million acquisition signals marina plan, not return of commercial conch farming

Turks and Caicos, May 12, 2026 – The Turks and Caicos Islands Government’s acquisition of the former Conch Farm property is not shaping up as a revival of the once world-famous aquaculture operation in Long Bay.

Instead, the $12 million purchase appears headed in a very different direction — transforming the sprawling waterfront site into what could become the new operational home for scores of marine and watersports operators who have long struggled for space along the eastern shores of Providenciales.

And for many observers familiar with the growing tensions in those areas, the move may actually make more sense than first believed.

Over the years, the rapid expansion of jet ski operators, charter boats, parasailing businesses and excursion companies along eastern beach and marina areas has increasingly created disputes over access, launching rights, docking space and territorial use of waterfront locations.

At times, those disagreements have reportedly escalated into confrontations serious enough to require police intervention.

Now, according to comments delivered by Premier and Finance Minister Charles Washington Misick during debate on the 2026/27 Budget, government intends to use the former Conch Farm property to bring greater order and infrastructure to the rapidly expanding marine sector.

“The acquisition and redevelopment of the Conch Farm property at Long Bay, Providenciales, is a strategic Government investment to strengthen the rapidly growing marine and water sports sector,” the Premier said.

He explained that the project is envisioned as:

“a safe, clean, and well-managed public marina dedicated to local operators.”

The Premier also pointed directly to the growing number of young Turks and Caicos Islanders entering the marine tourism industry since the COVID-19 pandemic.

“So many of these operators are young Turks and Caicos Islanders who have turned to self-employment since COVID-19,” he stated during the Budget presentation.

Government says the marina would provide affordable and regulated launching facilities while creating space for docking, boat services, small vendors, maintenance operations and other marine-related businesses.

The proposal also aims to formalize portions of an industry which has expanded rapidly alongside the country’s booming tourism economy.

“Best of all it ensures that the benefits of our booming tourism industry are retained right here in Turks and Caicos communities,” the Premier added.

The clarification significantly changes early public assumptions that government was preparing to revive the commercial conch farming operation once associated with the property.

The original Caicos Conch Farm was widely regarded as the world’s first and only commercial conch farm before hurricane damage, operational struggles, policy disputes and legal battles eventually led to its closure.

Now, while the historic name and marine legacy remain attached to the site, the government’s immediate vision appears centered far more on marine infrastructure and economic activity than on aquaculture.

And in a tourism economy increasingly dependent on marine excursions and water-based experiences, the move could ultimately reshape one of the most contentious and overcrowded corners of Providenciales’ tourism landscape.

Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.

News

Anantara Targets North Caicos for Latest Luxury Development

Published

2 days ago

May 12, 2026

Deandrea Hamilton

International resort brand launches sales for residences and resort project on Sandy Point

Turks and Caicos, May 12, 2026 – Sales have started on what could become another multi-million-dollar luxury residential resort development for the Turks and Caicos Islands — but this time, North Caicos is poised to become home to the investment by international luxury brand Anantara.

The project, now being marketed globally through developer platforms and international promotional campaigns, is planned for the Sandy Point coastline and is being pitched as a collection of luxury residences paired with high-end resort amenities on one of the country’s least developed major islands.

What may distinguish this proposal from several ambitious North Caicos projects that never fully materialized, however, is the reputation and global footprint behind the Anantara brand itself.

Anantara Hotels & Resorts operates luxury properties across Asia, the Middle East, Africa and Europe under parent company Minor Hotels, an international hospitality group with more than 500 hotels in operation worldwide. The North Caicos project is being promoted as Anantara’s first-ever Caribbean development — a detail likely to draw heightened international attention and investor confidence.

Developers are positioning the investment as an opportunity to experience a quieter, less discovered side of the Turks and Caicos Islands, one they argue rivals the beauty and exclusivity long associated with Providenciales.

And North Caicos, one of the largest islands in the archipelago and widely regarded as its most lush and green, offers a dramatically different landscape from the tourism-heavy pace of Providenciales — with expansive wetlands, undeveloped beaches, dense vegetation and a slower, nature-focused atmosphere increasingly attractive to luxury travelers seeking privacy and wellness-oriented experiences.

According to promotional material, the development is located approximately 25 minutes from Providenciales by combined ferry and air connections and will include 78 branded residences, beachfront villas and resort-style amenities focused on low-density luxury living.

The project team includes several recognized figures in luxury hospitality and development, among them Rob Ayer, associated with Wymara Resort developments, and Caroline Domange, co-founder of Cheval Blanc, the ultra-luxury hospitality brand linked to LVMH.

Premier Charles Washington Misick is also featured prominently in the global announcement, describing the project as:

“the beginning of a new chapter for luxury lifestyles in the Turks and Caicos Islands.”

The investment aligns closely with government’s increasing emphasis on shifting development beyond Providenciales and driving greater economic activity into the Family Islands.

Still, the proposal is also expected to reignite wider national discussions about infrastructure readiness, housing pressures and the long-term pace of development throughout the territory — particularly as government recently approved the formation of a Public Private Partnership Working Group on Hotel Employee Accommodations.

Promotional material circulating internationally suggests residences at the North Caicos development could start at just under US$1 million — underscoring the ultra-luxury market the project intends to attract.

The project is currently targeting a 2029 opening.

Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.