THE Marianas Visitors Authority supports Gov. Arnold I. Palacios’s directive to advance U.S national interests in the Pacific region, which includes pivoting away from the CNMI’s reliance on its Chinese tourism market, acting MVA Chair Gloria Cavanagh said.
MVA understands the importance of the China market, she added. Tapping it “would be the fastest and easiest path towards recovery, especially with our on-island partners. In the recent past, this market has been number one or two in any given year,” she said.
However, Cavanagh said, “we respect and honor the decision of our governor.”
“Recently,” she added, the CNMI lost one of its signers of the Covenant, Mr. Edward Pangelinan. With his passing, we should be reminded of the work and the vision that gave the people of the CNMI the privilege of being U.S. citizens. We are Americans. As such, we must consider the security and sovereignty of our nation.”
Cavanagh said they are hoping that “geopolitical tensions will subside sooner than later but until then, we will support the administration’s directive to strengthen our Japan and Korea markets (our political allies) and to seek opportunities in other markets.”
Cavanaugh said, “It will take time and research, but we are up to the task.”
The U.S. Centers for Disease Control and Prevention recently rescinded the mandatory requirement for a negative Covid-19 test result from travelers from China to the U.S.
The CNMI visa-waiver program in place allows tourists from China, including Hong Kong, to visit the Commonwealth for 14 days without a U.S. visa.
Prior to the global spread of Covid-19 in 2020, China was the CNMI’s second largest tourism market after South Korea.
In 2020, arrivals from China, which totaled 185,550 in 2019, dropped to 18,550. In 2021 and 2022, there were a total of 198 arrivals from China.
US military aid
In a March 15, 2023, letter to Adm. John Aquilino, commander of the U.S. Indo-Pacific Command, Governor Palacios said the CNMI “is very much committed to U.S. national interests in our region and will do what we can to advance these interests as geopolitical tensions continue to heighten,” referring to China-U.S. relations.
Part of this commitment, the governor said, includes “the CNMI’s pivot away from its reliance on the Chinese tourism market, which comprised more than 50% of our tourism base, or about 200,000 visitors (pre-pandemic). We are now working to strengthen and further develop the tourism pipeline from American allies including Japan and Korea, which of course will take time.”
Palacios said the loss of the Chinese market “has had a considerable adverse economic and financial impact on the Commonwealth. This loss, which represents a sizable portion of the CNMI’s tourism revenue, contributes to vulnerable economic conditions that in the past have been exploited by the Chinese Communist Party to the detriment of the United States’ interests in the region.”
Because CNMI economic stability and sustainability is directly tied to the strategic posture and military might of the U.S. in the Indo-Pacific region, “we are formally seeking your advocacy for additional funding support to stabilize our economy as you testify before the U.S. Congress about the Department of Defense’s budget. Specifically, we request for your support in seeking direct aid to replace the economic loss that we have experienced as a result of the CNMI’s pivot away from China,” Palacios said.
In his testimony before the U.S. Senate Committee on Energy and Natural Resources on Feb. 9, 2023, the governor said the CNMI is “grappling with crises on multiple fronts: a government in fiscal disarray; an economy still struggling from the impacts of Covid-19 and several unprecedented typhoon disasters that preceded the pandemic; an unstable environment for businesses and workers; dilapidated infrastructure and systems that are woefully underprepared for the climate crisis; and a shrinking population as citizens leave our islands for greener pastures.
Against this backdrop of vulnerabilities, the governor said, “are the geopolitical challenges presented by China in our islands and in the region.”
“My administration is fully committed to rebuilding relationships of trust and confidence among our citizens, our federal partners, and our allies in Micronesia and the wider Indo-Pacific area. The people of the Northern Marianas are proud American citizens, and critical partners in national security and peace in the region. But we are also vulnerable, struggling to stay afloat in a sea of immense challenges. And I am here to appeal to you, and to all of our federal partners, to support the Commonwealth’s efforts to reach stable ground and ultimately thrive — fiscally, economically, and socially,” Palacios said.
“The interests of the Marianas in getting our government’s financial house in order, shoring up our economy, strengthening our infrastructure, and stabilizing our population are inextricably linked with the interests of our nation and our allies in a secure and peaceful Indo-Pacific,” he added.
“I have pledged the full support and cooperation of my administration in seeing the [U.S.] divert airfield project through, and I look forward to continuing engagement with the Department of Defense in discussions of other proposed future training facilities and activities in the Marianas,” the governor said.
