Acting Gov. Diego T. Benavente says the CNMI should diversify its sources of income as it could not rely solely on the revenue from the tourism industry.
“Our administration is committed to making tourism the number one industry and if possible, the only industry,” he said. “But it’s definitely a fragile industry and so diversifying is necessary,” he added.
Due to the eventual implementation of free trade agreements around the world, the local garment industry is also expected to reduce its presence here, CNMI government officials said.
Benavente said the government has always welcomed the entry of new industries in the commonwealth and has provided incentives, such as the free trade zone and qualifying certificates, to entice investors to set up businesses in the CNMI.
The government, he said, is “continuously looking” for another industry that would serve as the backbone of the CNMI’s economy.
Benavente believes that the island’s infrastructure is ready to accommodate other types of businesses.
“I think that at this point, what we have to offer is already enough of an incentive to bring in (new investors),” he said.
A recent study made by Dr. Wali M. Osman, international economist for Bank of Hawaii, suggested that the CNMI should “refurbish its reputation as a tourist destination, by enhancing its tourist infrastructure, especially on Saipan, where garment manufacturing has obscured something of the island’s essential character.”
Another study made by Osman said Pacific island economies should put in place economic programs that are “self-reliant.”
He said these economies, which have more water than land resources, could concentrate on developing a fishing industry.
“Eighty percent of the world’s pelagic fish are harvested in the Pacific. This represents roughly one and one half percent of total global catch for human consumption…. However, most of the gain in value added from fish processing and marketing accrues to foreign countries. To increase the value added accruing to the Pacific island economies, more fish processing must be located locally,” Osman said.
