“Rota is facing the same problem that both Tinian and Saipan are facing: a global economic crisis compounded by the pitfalls of federalization,” he said, reacting to Rep. Victor B. Hocog’s concerns about Rota residents leaving the island.
Reyes said this problem can be resolved if all leaders of the CNMI will unite to address the issue with the federal government.
He said this is why Gov. Benigno R. Fitial has sued the U.S. government over the federalization law.
“Our other leaders should support the governor’s efforts,” he added.
Tinian’s gaming industry, he added, will be severely affected by federalization.
“The visa waiver issue is a key point. Tinian needs access to the Chinese tourism market. A major Tinian development by the Bridge Investment Group has been suspended because of federalization and the Dynasty is at risk. Rota cannot develop a gaming industry without adequate access to labor, investment, and tourists,” Reyes said.
However, he added, despite the global economic slowdown, there is still substantial investment capital in Asia.
He said investors are still willing to invest in the CNMI, but the severe market restrictions imposed by federalization have compromised the CNMI government’s efforts at economic recovery.
The call center industry, for instance, never developed because of federalization, he added.
Hocog, in a separate interview, said the exodus of Rota residents will continue because “they just can’t just stay there and not have anything.”
He added, “What I am afraid of is the closure of more local businesses and that will happen as a result of the implementation of the federal immigration law.”
Hocog, Ind.-Rota, said the federal government should listen to the concerns of the CNMI.
“The U.S. has millions of illegal aliens in the feds’ own turf and yet they focus on these small faraway islands that are already struggling to cope with an economic crisis,” he added.
