In a public hearing attended by over a hundred community members yesterday, the company, through its presenter Catherine Anderson, touted the short and long-term as well as the direct and indirect benefits that the CNMI will realize from the company’s investments here.
Anderson is a former public information officer of the governor.
Saipan Laolao Development Inc. is affiliated with Kumho Group, the mother company of Asiana Airlines.
According to Anderson, Saipan Laolao will bring a total of $387 million in investment benefits.
She said direct benefits over these years total $43 million which include materials — $28 million; labor — $6.4 million; and services — $8.6 million.
The government has approved a 40-year land lease for Laolao for $2.5 million.
The company said this lease will bring, in the next 25 years, some $11.3 million in tax benefits to the CNMI: 4.6 million in income tax and $6.7 million in hotel occupancy tax.
Saipan Laolao said the employment benefit is estimated to total $84 million.
The indirect benefits in the next 25 years, Laolao said, will total $246.4 million which will come from the creation of 119 additional jobs which will translate to labor income of $94.1 million and business activity worth $152.3 million.
Anderson also cited the “many accomplishments and initiatives of the Kumho Group that have already spurred economic activities” on the islands.
She said these include seven additional regular flights initiated by Asiana Airlines in less than a year, resulting in an increase in arrivals from Korea.
The company, she said, also committed to initiate public and private partnerships, conduct charitable golf tournaments for the community and college students, and is involved in community activities.
But Anderson said that without the qualifying certificate, which will provide Saipan Laolao with tax breaks, the company’s plans will not be realized and fully developed.
Individuals representing various sectors yesterday supported the granting of QC for the company.
The Marianas Visitors Authority, the Department of Commerce, the Department of Labor and other agencies and private groups urged the Commonwealth Development Authority to approve Saipan Laolao’s QC application.
They said in this time of economic distress, Kumho remains committed in doing business with the commonwealth.
They believe that Laolao is the “best qualified candidate” to avail of tax breaks from the government.
“They’re real, they’re here, and they’re committed,” said Marian Pierce Aldan, representing DFS Galleria and the Strategic Economic Development Council, a local business group.
Others cited all the activities initiated by the Kumho Group, and said: “They’re not just empty promises.”
Among the executives of Laolao company present during yesterday’s hearing were Yun Kim, president and chief executive officer; and Tetsuya Matsunaga, vice president and general manager.
