Richard C. Barth, acting principal deputy assistant secretary for policy of DHS, said their office carefully considered and analyzed economic and security concerns before it came up with a list of 15 countries included on the Guam-CNMI Visa Waiver Program that excluded China and Russia.
“Since the enactment of this historically significant legislation, DHS and its components have been working very hard to ensure that we implement the statute in a manner that will minimize any adverse effects on the people of Guam and the CNMI,” said Barth who was among the panelists called to testify before the U.S. House Subcommittee on Insular Affairs, Oceans and Wildlife regarding U.S. Public Law 110-229.
This law mandates the federalization of CNMI immigration starting Nov. 28.
Gov. Benigno R. Fitial said Russia and China are important markets for the local tourism industry, particularly on Tinian, which charters flights to key Chinese cities.
Fitial said 70 percent of tourists visiting Tinian are from China.
“Access to the China market constitutes nearly 70 percent of the entire tourism economy for Tinian. From 2002 to 2006, the number of Chinese tourists visiting Tinian increased 205 percent. The continued visa-free access to the China market is responsible for about 800 direct jobs on an island with roughly 3,500 people,” Fitial said.
“Tinian’s local revenue is obtained solely from a casino revenue tax, which is greatly dependent on the China market and supports essential public services on the island. The department’s regulations fail to recognize the current and future private business investment in continued access to the China market,” said Fitial.
“Elimination of this market could result in the failure of a $150 million development (the Tinian Dynasty Hotel and Casino) and the stoppage of development of a $60 million development (the Tinian Ocean View Resort and Condominium project), which together would provide about 1,000 jobs on the island,” he added.
He asked the panel to persuade Homeland Security to include China and Russia in the Guam-CNMI Visa Waiver Program.
One of his suggestions is to require Russians and Chinese tourists to put a bond when visiting the islands.
Guam Gov. Felix Camacho agreed.
He said China’s outbound tourist market is projected to grow to 46 million in the coming years. Even a fraction of this number would have a tremendous impact on their economy.
“About 18 percent or 8 million of these Chinese travelers are potential tourists to non-Asian destinations, and a target of 2 percent market share for Guam translates into some 160,000 visitors. At $112 daily spending, one can surmise the significance of the Chinese market for Guam, both in number and spending potential,” the governor said.
Guam welcomes about 1.2 million tourists each year. It aims to entice at least 160,000 Chinese tourists each year.
“Achieving even half of our target share of market at an average four-day stay can produce an economic benefit of $62.7 million to Guam…the potential for Guam to establish direct air service and to attract 160,000 or more Chinese tourists each year is an opportunity too compelling to be denied,” he added.
The private sector representatives from Guam and the CNMI who testified in the subcommittee also stressed the need to keep the Russian and Chinese tourism markets.
