TCI News
Millions more in paychecks, new proposal gives hospitality workers entire service charge
#Providenciales, Turks and Caicos Islands – Hospitality workers are on the brink of seeing their salaries significantly embellished as the Service Charge (Hotels and Restaurants) Ordinance (2004) is revamped, renamed and ready for the House of Assembly for debate.
The Minister with oversight of the coming legislation, Deputy Premier and Employment Minister Sean Astwood confirmed to Magnetic Media about the split on the service charge proposal: “They will get 100 percent of the 10 percent.”
The Minister was explaining how much the resort workers will be legally expected to take home, once the service charge law takes effect.
Premier and Finance Minister, Sharlene Robinson, to the media during a press conference in late July confirmed that the work on getting the controversial ‘pay-boost’ right has been arduous but productive.
“When I came into office there was very low participation to the survey that was already introduced by the Ewing Administration, we halted it until the Budget passed. Statistics Department not until about December did the surveys and the surveys included 30 establishments who finally decided to participate and over 500 workers in the industry.”
The Premier explained that the survey uncovered a situation of utter chaos with no legal framework for government oversight, no proper record keeping of how much was being collected by resorts and restaurants and little understanding among workers about what happens to the monies being paid by guests to the tune of millions of dollars per year.
“People don’t know how it is calculated whether it is done correctly. We saw where some places didn’t even keep records and we heard persons of the different uses they had of the 40% that was allowed to be kept and it was such a colossal mess. We agreed, which we said to the people, that 100% service charge should go to the workers; that is our position, it maintains (our position) to this day.”
On Wednesday July 25, the Turks and Caicos Cabinet approved the revamped version of the Service Charge Ordinance, now renamed: the Hotel and Restaurant (Service Charge) Bill 2018.
The amended law does a lot of heavy lifting according to the Finance Minister, who said though her office will shepherd the Bill to and through the House of Assembly, it falls under Border Control and Employment with the Minister and Labour Commissioner having more direct oversight of the provision. 
“It clears up the definition of service charge, because we saw tips and gratuities was also used interchangeably which is not so; it introduces a registration process for those persons who chose to levy a service charge, they now have to register and they that we are doing it and they also have to keep records and they also have to identify someone in their establishment as the Troncmaster. That is a person that is usually in place around the world anyway when it comes to service charge, who an employee will go to and say I have questions about the calculations. Also under this bill the Labour Commissioner can ask for documents, so he can compel documents to be given to him.
The businesses will need to keep filings and records for at least two years; these will be subject – legally – to inspections.
Penalties for establishments not complying with the law are also provided for through the revised ordinance, and those penalties will be determined by the Minister responsible.
The PDM Administration says this ‘labour benefit’ will also be fixed at 10% of a customer or client bill. Establishments, to compensate for the losses which will come with activation of this law, can legally tack on a Facility Fee. This fee is open – no minimum, no maximum – is framed in the new proposed legislation.
“So for those resorts, in particular, who argue that this is going straight to our bottom line and we are used to collecting this amount. We’ve introduced a Facility Fee of up to a certain percentage that they can charge and we didn’t put a minimum because if your resort can resort one percent or two percent or three percent or up to five percent then that is your call and that is for the hotel’s use.”
The Hotel and Restaurant (Service Charge) Bill 2018 is expected to reach the House of Assembly next month.
Providenciales, Turks and Caicos Islands – May 14th, 2024 – The Turks and Caicos Islands Government and Molo Hotel Group reached a pivotal juncture on Monday, May 13th, 2024, with the ceremonial signing of a development agreement at the Premier’s Office on Providenciales. The agreement, which received official Cabinet approval on March 13th, 2024, signifies a steadfast commitment to advancing the economic landscape of the Turks and Caicos Islands.
Molo Hotel Group is a family-owned business, renowned for its distinguished portfolio of high-quality hotels worldwide. The
development initiative encompasses the construction of three distinct IHG branded hotels: InterContinental Turks and Caicos, Kimpton Turks and Caicos and Hotel Indigo Turks and Caicos. Scheduled for completion by 2027, each resort boasts a distinctive design from luxury to laidback sophistication spanning across the shores of Grace Bay Beach.
Kimpton Turks and Caicos – an epitome of luxury lifestyle living, will feature 192 guest rooms including three outdoor pools, a luxury spa and a fitness center. Additionally, seven dining options ranging from a beachfront restaurant to a rooftop bar.
Adjacent to the Kimpton, InterContinental Turks and Caicos will offer 59 classic luxury suites with panoramic ocean views. Mirroring its counterpart, this resort will offer an array of dining options and upscale facilities.
Steps away from the Intercontinental and Kimpton resorts, Hotel Indigo Turks and Caicos will embrace a sense of community and contemporary elegance, offering 56 bedrooms. The resort will feature an onsite restaurant, lobby bar, outdoor pool, and fitness room.
Beyond the realm of hospitality, this development agreement underscores the government’s commitment to fostering economic growth and enhancing employment opportunities in the Turks and Caicos Islands. Molo is partnering with the Turks and Caicos Islands Community College (TCICC) to actively promote hospitality as a career choice and support in developing training programs, career fairs, seminars, workshops, and events to raise awareness about hospitality careers. Molo has committed to provide employment and apprentice opportunities to TCICC students and provide mentoring and practical on property training to students.
The signing event was graced by Hon. Charles Washington Missick, Premier of the Turks and Caicos Islands, Hon. Jamell Robinson, Deputy Premier, Hon. Kyle Knowles, Minister of Public Safety and Utilities, Hon. Rachel Taylor, Minister of Education, Youth, Sports and Culture, Łukasz and Marcin Slominski, Owners of Molo, Ross Morrow, Managing Director Molo, Arik Kono, Vice President Upscale Development for IHG, Dr. Candice Williams, President and CEO of the Turks and Caicos Islands Community College, Angela Musgrove, InvestTCI CEO, Dr. Barbara Ambrister, Chairperson of the Turks and Caicos Islands Community College, Dr. Delores Stapleton- Harris, Vice President of Academic, Vocational and Student Affairs for the Turks and Caicos Islands Community College, Mr. Kevin Baxter, Dean of Technical Vocational Education Training (TVET) and Sheryl McLaughlin, InvestTCI Investment Services Executive.
Commenting on the development agreement, Premier, Hon. Misick, stated “The Memorandum of Understanding (MOU) signing of
IHG/Molo Hotels is a significant step towards a sustainable future for hospitality in the Turks and Caicos Islands. Three hotels, Kimpton, Intercontinental, and Hotel Indigo, will be introduced, enhancing our tourism product and creating employment opportunities.”
He further added, “Partnerships with the Turks and Caicos Islands Community College and Turks and Caicos Islands Sports Commission are underway, demonstrating the Government’s commitment to developing human capital and elevating tourism offerings. This project will bring economic growth, embrace local talent, and enrich our economy.”
Additionally, Mrs. Angela Musgrove, CEO of Invest Turks and Caicos Islands, emphasized “This collaboration confirms our commitment to fostering economic growth and prosperity within our country. We have worked closely with Molo Hotel Group, and we are confident that this transformative project will further position the Turks and Caicos Islands as a premier destination for travel and investment. Much to our delight, it will also provide opportunities for engagement with our Community College and small business community.”
The Government of the Turks and Caicos Islands, operating through its primary Investment Promotion
Agency, Invest Turks and Caicos Islands, remains committed to attracting and facilitating Foreign Direct Investments to the country by providing a comprehensive suite of services. Through strategic initiatives and targeted promotion, the agency catalyzes sustainable development, driving innovation and small business opportunities across various sectors of the economy.
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