IN a recent op-ed, (“Building a Resilient Economy, Together”), the governor said he is “disappointed by the narrative that continues to be pushed in the press and by certain business interests, that the People’s Republic of China…is the only answer to our current economic struggles.”
Who made that claim? Most of the public statements about the economy issued by the chamber or HANMI are about the CNMI’s need for another major source of tourists besides the South Korean and the (barely existing) Japan markets. The most obvious “other” tourism market, of course, is China. Without the once robust arrivals from that Asian country, the local economy is struggling to recover — as the governor himself pointed out last year. He said the loss of the Chinese market “has had a considerable adverse economic and financial impact on the Commonwealth.” And this, in turn, is why the CNMI government revenue collection is declining and is not enough to pay all its obligations…unless it significantly reduces its spending.
“The Marianas remains in a deep state of recovery following the pandemic, which in combination with recent historic natural disasters, has crippled our infrastructure and economy. Members of my community remain concerned that our ailing economy will continue to languish and may not recover until access to Chinese tourism is regained. This could only happen when direct scheduled flights from China fully resume….”
Who said that? The chamber? HANMI? That was from Congressman Kilili. Resolutions adopted by the local House and Senate also mentioned the importance of the China tourism market to the local economy.
No one among the business community, as far as I know, is disputing publicly what the governor calls “geopolitical realities” pertaining to U.S.-China relations. In their joint letter to the governor and other CNMI top officials in Oct. 2023, the chamber and HANMI noted that despite the “increased tensions” between the U.S. and China, the federal government “has engaged in a concerted effort, including policy changes, to rebuild the Chinese tourism market in states and cities across the country. U.S. Department of Commerce Secretary Gina Raimondo has recently concluded an extended official trip to China to rebuild travel from the U.S.’s fourth largest tourism market. Secretary Raimondo highlighted the importance of this engagement by remarking that if arrivals ‘just return to the 2019 levels of Chinese visitors to the U.S., that would generate $30 billion in GDP and more than 50,000 additional American jobs.’ ”
No one, moreover, is for “overdependence on China-backed investment.” The governor said “overdependence makes us vulnerable,” but the CNMI under his watch is virtually overdependent on one tourism market — South Korea. If that is his preferred policy, OK then. But as the chamber and HANMI have pointed out in their joint letter, “The motivation toward keeping tourists from China, the CNMI’s second largest market, out of our economy, without a suitable and ready alternative simply limits business revenue, employment opportunities, and government resources.” Hope, incidentally, is not an alternative. It won’t fund the retirees’ 25% benefit.
The governor also mentions corruption and the abuse of ARPA funds — as if someone is arguing for them. It is also an argument that he and his political allies have already won. (See 2022 election results.) Additional hearings have been held, charges have been filed, investigation, local and federal, is said to be ongoing. The governor and his allies have been in charge since Jan. 2023. The coalition of protest is now the coalition in power, but it’s still protesting. What has it done to improve the economy and the government’s financial condition? Have both improved?
The governor said “recovery takes time,” which is true, but he also claimed that “we are recovering.” Never mind what the business community would say about that startling assertion. What do the latest numbers indicate? Tourism arrivals are still below the pandemic levels; the average hotel occupancy rate is still way below the rate that will allow hotels to remain afloat; and the CNMI government has missed its revenue projections in the first two quarters of the current fiscal year, and this was before Hyatt’s shutdown announcement, and HANMI’s grim projection for the summer months.
We are recovering? Maybe the federally funded are — and more power to them — but not everyone is similarly blessed by Uncle Sam.
“Gloomy forecasts and false ‘China or bust’ narratives are unhelpful,” the governor said, resorting to another strawman argument. “Constant negative messaging undermines investor confidence and our efforts to achieve long-term stability and resiliency,” he added.
Actually, what could (further) undermine investor confidence is an overspending government that wants to impose tax/fee hikes on already struggling taxpayers while ignoring a major source of tourists.
“Building a resilient economy,” the governor said, “requires us…to be all in, together, for the long haul.”
What is a “resilient” economy? What national economy, however big, wealthy and developed, has not suffered from unexpected events or experienced the never-ending business cycle of boom and bust?
And how can we be “all in together” with the governor after he not-so subtly implied that those who disagree with him are either ignorant or corrupt?
Perhaps a more apt title for the governor’s op-ed is a paraphrase of the New York Daily News’ (in)famous front-page headline in 1975:
“Governor to business community: Drop dead.”
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