By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
“IT has been a rough year for all of us here,” Gov. David M. Apatang said on Monday as he reflected on the past months, when economic challenges from previous years continued to confront the Commonwealth.
He recalled that he, the lieutenant governor at the time, and former Gov. Arnold I. Palacios “came in with a lot of issues” facing the CNMI. “There were a lot of challenges economically,” he said, referring to when he and Palacios were sworn into office in January 2023.
“Up to now,” he added, “these economic challenges are still confronting the CNMI.”
Economic strains
The CNMI began 2025 with a $117 million budget. Although it increased to $139 million in a revised budget signed by Palacios in February, the Finance Department warned of a “substantial adverse effect” on government revenue collections due to potential withdrawal of charter flights and possible closures of major tourism-related businesses.
The acting Finance secretary issued a memorandum stating that “the potential withdrawal of charter services, particularly those from key airlines like Jeju Air, and the possible closure of major conglomerate establishments that play a vital role in the local tourism industry are expected to have a significant impact on the tourism sector.”
Around the same time, the transition team created by the Palacios-Apatang administration reported $86 million in “overcommitted” American Rescue Plan Act funds and $37 million in overspent local funds.
On April 30, Duty Free Shop Saipan closed its doors after 40 years on the island, leaving another empty building in the Garapan business district. Later, Jeju Air, one of the two remaining airlines bringing tourists from Korea, temporarily reduced late-night flights between Sept. 10 and Oct. 1.
In September, Gov. Apatang signed a $127 million fiscal year 2026 spending measure but urged the Legislature to pass a revised budget “with decreased revenues forecasted,” noting that the administration would need to implement “immediate proportionate budget reductions across the board, resulting in a forthcoming work hour cut to the executive branch.”
In memoriam
The CNMI also lost several respected leaders in 2025. In March, former House Speaker Oscar M. Babauta, who was serving as special assistant for administration, passed away at age 70. The sudden passing of Gov. Palacios later caught the Commonwealth by surprise; he was 69.
Three months later, former Rep. Andrew S. Salas died at age 69. In November, former Lt. Gov. Diego T. Benavente passed away at 66.
Reflecting on the difficult year, Gov. Apatang said, “I am hoping that next year will be a lot better for all of us here in the Commonwealth.”
Renewed hope for business
Saipan Chamber of Commerce President Joe C. Guerrero, who co-chairs the Governor’s Council of Economic Advisers, said 2025 “has been another challenging year for the business community in general.” But he noted, “there is sort of renewed hope.”
Guerrero said many business owners told him they feel hopeful about the CNMI government’s initiatives, citing the opening of the One Stop Business Permitting Center on Capital Hill as an example.
“People might think this is just a small thing, but for many businesses, it gives them motivation,” he said. “Entrepreneurs feel that the government is ready to help them start a business, despite difficulties.”
He believes that the business community is “turning the corner. I think so, and I sense it.” Guerrero also praised the governor’s accessibility: “Never before in the past few years have members of the business community had such direct access to the governor’s office. We don’t have to wait for weeks for an appointment.”
“No matter how challenging the year was,” he said, “we don’t lose hope, and the government is really helping businesses.”
Stabilizing tourism
Marianas Visitors Authority Managing Director Jamika Taijeron described 2025 as a year that was “more about stabilization” for the tourism sector, which, she added, faced a volatile market.
“Our airlines are stopping and starting flights, suspending operations, and changing schedules,” she said. “In order for CNMI tourism to recover, we need stability.”
Looking ahead to 2026, she said the Commonwealth is poised for the start of recovery, “especially as we are able to get some new airlines interested.”
Taijeron also highlighted the CNMI tourism’s new global branding launched earlier this month, the “Far From Ordinary” campaign, which is designed to help all partners understand the brand story, positioning, and guidelines.
“So I look at it as a new beginning and an opportunity to reimagine our tourism future,” she said.
Achievements
Commerce Secretary Remy Mafnas said 2025 was a year of accomplishments for her department.
“We have accomplished a lot in 2025, but it doesn’t stop there. We still have many things to accomplish in 2026,” she said.
Aside from launching the One Stop Business Permitting Center on Capital Hill, Commerce is developing an online portal for business permitting, beginning with banking and insurance services. Other 2025 accomplishments include the Made in the CNMI product seal, the Registrar of Corporations online portal, promulgation of captive insurance regulations, and the creation of the Foreign Corporations Liaison Office.
Lessons in public safety
Department of Public Safety Commissioner Anthony Macaranas said 2025 will offer lessons for 2026.
“Whatever has happened in 2025, we take those lessons to advance ourselves in 2026,” he said.
Macaranas noted that crime is becoming “more technical and more advanced,” requiring officers to receive updated training to meet modern challenges. He also highlighted traffic safety: after zero road fatalities in 2024, DPS recorded two in 2025.
“Much of our effort is focused on enforcing the law and making public safety a priority,” he said. “Respect your neighbor, help your neighbor. Drive safely, within speed limits, and buckle up. These precautions are for your protection.”
Cautious optimism
Despite a challenging 2025 marked by economic strain, business closures, airline reductions, and the loss of key leaders, CNMI officials and community leaders expressed cautious optimism. Initiatives like the One Stop Business Permitting Center, new tourism branding, and ongoing fiscal management point to renewed hope for stability and growth in 2026.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
