Concerns raised over government use of Orange Bay Hotel to house Ballast Nedam workers

ORANJESTAD, St. Eustatius – The use of the Orange Bay Hotel by the St. Eustatius government to accommodate workers from Ballast Nedam is raising concerns within the island’s hospitality sector. Hotel operators are questioning whether the arrangement creates unfair competition with private accommodation providers and whether the facility meets all requirements for its current use.

BES-Reporter understands that Ballast Nedam personnel working on St. Eustatius are being accommodated at the Orange Bay Hotel through an arrangement involving the Public Entity St. Eustatius.

The situation has prompted concerns among local hotel operators at a time when several commercial accommodation providers are experiencing relatively low occupancy rates. They question why accommodation is being provided through a government facility when rooms are available within the private sector.

One of the issues being raised is taxation. Commercial hotels are required to charge and remit room tax, while questions have emerged over whether the same tax applies to the accommodation being provided at Orange Bay Hotel. Operators argue that if the government facility is not subject to the same costs and obligations, private businesses could be placed at a competitive disadvantage.

Questions about catering and permits

There are also concerns about meals reportedly being prepared at the Orange Bay Hotel for the workers staying there.

Industry representatives have questioned whether the facility has the permits and approvals required for the preparation and provision of meals, and whether people handling food have the required health certification.

Questions have additionally been raised about the building’s fire safety and whether the facility and its installations have been inspected and approved for their current use by the relevant authorities, including the Fire Department.

BES-Reporter has not independently established that the Orange Bay Hotel is operating without any of the required permits or approvals. The concerns have therefore been put to the government for clarification.

Government response pending

BES-Reporter submitted a series of questions to the Government Information Service (GIS), seeking clarification on the arrangement with Ballast Nedam, the applicable room tax, the reason for using Orange Bay Hotel instead of existing commercial accommodation, and the permits and safety requirements applying to the facility.

The Government Information Service has informed BES-Reporter that it expects to be able to provide answers within one week.

Until those answers are provided, it remains unclear under precisely what arrangements the workers are being accommodated, whether room tax is being levied and which permits and inspections are in place for the accommodation and catering activities.

BES-Reporter will publish the government’s response once it is received.