David Sablan, Department of Public Lands special advisor, said the area enclosed in the red lines labeled “Mariana Global” is the exclusive concessionaire area or ECA. The green area to the west of the ECA is the designated swim zone. Under the proposed changes to the rules, the public can still bring food to the island and consume them at public pavilions, but they should not consume personal food or beverages in the ECA. Visitors must also use approved floatation devices provided by the main concessionaire if swimming in the designated swim zone.
THE Department of Public Lands on Friday announced that it will conduct two public hearings regarding the proposed amendments to the commercial rules and regulations for Managaha.
Both hearings will start at 5:30 p.m. on Aug. 16 and 19 in the DPL conference room at the Joeten Dandan Commercial Building.
In a July 15 public notice, DPL said it wants to prevent the consumption of outside food and beverages in its main concessionaire’s exclusive concession area or ECA; restrict certain personal floatation devices in the designated swimming zone; and “further define” the type of commercial activity that may only be conducted by the main concessionaire and authorized sub-concessionaires.
These proposed changes would help the main concessionaire, Marianas Global Inc., avoid liability it would face on its own, DPL said.
The “standard Managaha Island Master Concession Operator Agreement” between DPL and Marianas Global Inc. requires that DPL be secured against liability “for any injuries or losses which occur in the exclusive concession area,” DPL said.
DPL also wants a better definition of the “scope of commercial activity and concessions” included in the main concessionaire’s exclusive rights to do business on Managaha.
“Commercial activity” is defined as “any activity conducted on Managaha for profit (or resulting in profit) by an enterprise or person required to have a business license to conduct the activity.”
Marine tour operators and some members of the public have opposed the proposed amendments.
Chung Lee, who works for BSea Incorporated, said the rule changes could result in “fewer opportunities” for marine sports vendors, which eventually will harm the wider community.
Like a restaurant
In a press release on Friday, DPL reiterated that visitors can still bring personal food and beverages to Managaha. There are numerous public pavilions on Managaha where visitors may consume their personal food items, but these must stay out of the ECA, DPL said.
“This is no different than a restaurant prohibiting outside food and drink,” DPL added.
Visitors may likewise bring and use personal floatation devices to Managaha, DPL said, but must use them outside the Designated Swim Zone.
DPL states that Section 145-30-101 (a) of the Commercial Use of Managaha Island Rules and Regulations has been the same since 1993, and it states that “all commercial activity including recreational equipment shall be provided by the concessionaire and a limited number of sub-concessionaires.”
According to DPL, “The proposed amendment will [also] clarify that picking up tourists from [Managaha] to conduct [marine sports activities] is considered a commercial activity and [is] prohibited. The proposed amendment further clarifies that whether the commercial activity was a package deal that originated in Saipan to Managaha Island, or departs from Managaha to Saipan, this type of activity will be restricted. Marine Sport Operators will be restricted from picking up a visitor from Managaha Island for the purpose of any intended surface or underwater sport activity, unless the Marine Sport Operator(s) has a valid sub-concessionaire agreement that was mutually agreed upon by DPL and the Concessionaire.”
DPL said Marianas Global does not own the exclusive right to provide transportation to Managaha, and there are no proposed amendments to give Marianas Global exclusive transportation rights.
“The proposed regulation would not prohibit local residents from hiring boats or using personal transportation, and would not prohibit tour providers from arranging transportation between Saipan and Managaha (as long as the transportation does not include a marine sport activity),” DPL said.
Written public comments can be addressed to David Sablan, special advisor for DPL. Send them to PO Box 500380, Saipan MP 96950. The written public comment period ends on Aug. 14.
Partnership
Marianas Global, in a statement on Aug. 2, said it is not striving for a “monopoly on profits.”
“Over the past year, we have worked diligently to collaborate with existing operators. Our proposal focused on partnership and mutual benefit. We offered financial support to replace outdated and unsafe equipment for marine sports and rental operators, in exchange for subcontracting the provision of services to tourists visiting Managaha through us, ensuring fair profit margins. Additionally, we proposed a commission of 30-40% for local small travel agencies in return for their partnership in promoting and offering our services.”
But “existing operators” have “declined all of our proposals for unknown reasons,” Marianas Global stated.
Its two goals are to maximize the commercial potential for Managaha by “offering higher-level services to attract tourists with greater purchasing power,” and “actively [sharing] both direct and indirect benefits with the Saipan community.”
To that end, Marianas Global said it has made the following investments:
– $3 million in high-end equipment and infrastructure, including safe, high-quality boats and a wide range of rental equipment.
– $4 million in upgrading outdated and neglected infrastructure, including the electrical, water supply and wastewater treatment systems, as well as restoring beaches damaged by overgrown vegetation and algae.
Marianas Global said it contributes $800,000 to the CNMI as part of its exclusive concessionaire agreement, and employs 50 residents.
Losses
“Despite a monthly expenditure of $300,000 our revenue remains around $50,000, which we estimate to be about 20% of the total revenue generated by Managaha Island. The remaining 80% is retained by existing operators. As a result, we have been absorbing a monthly loss of $250,000,” Marianas Global said.
“We are profoundly concerned about the spread of unfounded and malicious rumors,” the concessionaire added.
“Should these damaging rumors persist, we will hold those responsible accountable.
“We secure approval from the relevant authorities for every action, including tasks as minor as removing a single weed or coconut. We are fully aware that Managaha Island is designated as a Marine Conservation Area, and we ensure that all activities with any potential impact are coordinated with the relevant government agencies.
“We strictly comply with U.S. federal laws and the relevant regulations of the Northern Mariana Islands. To minimize the risk of potential errors, we consistently consult with legal and accounting experts. We hold our employees in the highest regard and are committed to their well-being. We are dedicated to providing optimal support and addressing any malicious rumors regarding salary delays with strong countermeasures.
“We are fully insured for all marine safety requirements and maintain a constant deployment of safety personnel at all times throughout Managaha.
“We oppose the exploitation of Managaha Island for the short-term gain. To ensure that our jewel, Managaha, continues to be a valuable asset for the people of the Northern Mariana Islands, it is essential that the island is protected and maintained with the utmost care, rather than being merely exploited. Marianas Global Inc. is steadfast in its commitment to this principle.”
