The managers of Sandals Resorts International have announced that they are pulling of Tobago.
The announcement was made at a news conference following a meeting at the Office of the Prime Minister.
Minister in the Office of the Prime Minister and Communications, Stuart Young said the decision was due to bad publicity by a "handful of people".
He described this as a bad day for Trinidad and Tobago.
Sandals CEO Gebhard Rainer said there is no cost to Trinidad and Tobago since no contracts were signed by the two parties.
A statement by the Office of the Prime Minister (OPM) confirmed that Deputy Chairman, Adam Stewart and CEO, Gebhard Rainer of Sandals Resorts Inc met with the prime minister and Minister Young.
It said that at the meeting, the Sandals’ executives informed the Government that unfortunately, due to "the cumulative effect of the negative narratives espoused about the pursuit of a Sandals and Beaches Resort in Tobago, the Board of Sandals decided that its resources should be utilised elsewhere at this time".
The statement said that Stewart and Rainer confirmed that as the parties had not completed any commercial agreements there would be no costs from Sandals for the Government’s account.
"They thanked the Government and said that it had been a pleasure working with the Prime Minister and Minister Young over the last couple of years and that there was a level of disappointment that the project would not be proceeding," the statement added.
It noted that the government, while disappointed at this turn of events, continues to be committed to the development of Tobago and will continue to look for opportunities for Tobago.