CNMI government officials, business sector representatives and other community leaders gathered on Thursday to discuss the dismal state of the Commonwealth economy and share ideas on achieving a “measurable and sustainable economic growth.”
With Gov. Arnold I. Palacios as the keynote speaker, the “Chartering Our Future Economic Development Summit” took place at Saipan World Resort’s Royal Taga Hall. It was a whole day event and was hosted by Matrix consulting firm, a federally funded professional advisor to the governor.
The objective was to create shared understanding of the challenges facing the CNMI, and identify specific development projects and come up with an “economic development roadmap.”
Matrix senior economist Jeff Donohoe noted the more than 40% decline of the local gross domestic product or GDP since 2017 as well as the 32% decline of the islands’ population from 69,215 in 2000 to 47,322 in 2020.
The figure has likely declined further since then.
Donohoe said tourism represents as much as 75% of the CNMI economy. He also presented a growth opportunity from the military buildup, and provided details on how the Department of Defense activities will affect the CNMI economy.
He said in three years, the military buildup is estimated to create up to 1,414 jobs.
Donohoe said the access to the Asian market is the CNMI’s major strength, but labor availability is a significant threat.
He said the construction activities involving the military buildup offer short-term economic opportunities. However, U.S. Public Law 110-229, which extended federal immigration rules to the CNMI, “limits the ability to utilize low-cost labor from surrounding Asian markets.”
He noted that the CNMI’s access to foreign labor sources has fallen by more than 40% since the federal immigration law was implemented in the Commonwealth.
Realistic path
Palacios, in his keynote address said, “We must work together to provide a clear, realistic, and measurable path to economic growth through the implementation of sustainable, long-term strategies.”
He said he and Lt. Gov. David M. Apatang “did not invite all of you here to dwell on the economic problems of the CNMI or to belabor and lay blame on past mistakes and administrations. Instead, we invited all of you here to focus on solutions, to harness and deploy your collective insight and creativity, and to help overcome the obstacles that stand in the way of economic recovery and prosperity.”
In other words, he said, “we invited you here to help turn economic adversity into advantage and opportunity.”
He said economic recovery cannot be achieved by any one individual, by any one of the branches of government, by the private sector alone, or by any singular department or agency working in silos. He said, “We need to put our collective differences aside and work together as a team.”
He said, “We aim to delve into emerging market sectors that promise to enhance our economic landscape, pinpointing those ripe for innovation and investment. Your participation is crucial in illuminating these avenues of growth, enabling us to map out strategies that attract investment and foster a thriving economic ecosystem.”
He said the summit will also focus on critical infrastructure projects necessary not only to attract but also sustain investor interest and engagement.
“Your meaningful engagement in this summit is an opportunity to influence the strategic direction of our economic development, ensuring it is both inclusive and forward-looking. Together with visionaries and leaders from the various other sectors of our islands, you will be charting our future, creating the long-term agenda that will drive economic development, sustainability, and social vitality of the CNMI,” the governor said.
Apatang, for his part, believes that “some of the simplest answers to [our] many woes are right in front of us, in this conference hall. So let us work as one team to advance the Commonwealth in this fast-paced changing world.”
Tourism
In separate interviews, Saipan Chamber of Commerce President Joe C. Guerrero, Senate President Edith Deleon Guerrero and House Floor Leader Edwin Propst said the No. 1 challenge the CNMI is facing is the revival of its only industry, tourism.
“Once we reboot tourism, then we can do a lot of things, including planning on how to diversify the economy including how to build up the military presence in the CNMI,” the chamber of commerce president said.
“We just need tourism to start now so that we can do a lot of things. We need to breathe a little and I think the only way to do it is tourism. [The] military [buildup] is going to take time, we welcome that to diversify our economy, but I cannot emphasize enough that we need tourism to come back,” he said.
Deleon Guerrero said the CNMI “needs more airlines to come to the Commonwealth — we need to bring in the tourists. That is what we need.”
Propst said, “Everything we are focusing on right now is about our economy and this comes at a very critical time. … We know that in this economy we are all together. We all have to work together and get out of this rut. We have to improve our economy. Guam is doing quite well with the military and they are very fortunate. We have to regrow our tourism, rebuild those numbers and fill the hotels and everything else will happen. So I’m here to support this and every other summit and anything that is about the economy, I’m here to support it 100%.”
Gov. Arnold I. Palacios delivers his keynote address during the “Chartering Our Future Economic Development Summit” at Saipan World Resort’s Royal Taga Hall on Thursday.
Lt. Gov. David M. Apatang delivers his own remarks.
Northern Marianas College President Galvin Deleon Guerrero, Ed.D. talks about sustainable development.
Sen. Paul A. Manglona, center, Marianas Visitor Authority Managing Director Christopher Concepcion, third right, and Department of Public Lands Secretary Teresita Santos are among those who attended the economic summit.
Customs and Biosecurity Director Jose Mafnas, center, listens to Gov. Arnold I. Palacios’ remarks.
Sen. Celina R. Babauta, right, NMC President Dr. Galvin Deleon Guerrero, center, and Hotel Association of NMI Chairman Dennis Seo, left, listen to the governor’s remarks.
Rep. Julie Marie Ogo, Rota Mayor Aubry Hocog, and Sen. Celina Babauta pose for a photo during a break from the summit.
Commonwealth Healthcare Corp. Chief Executive Director Esther L. Muna, right, poses with Gloria Hunter, former special assistant for programs and legislative review.
Senate President Edith Deleon Guerrero, Commonwealth Ports Authority Executive Director Leo Tudela and Gloria Hunter, former special assistant for programs and legislative review.
