Hard sell
IN his remarks at the recent IGIA meeting in the nation’s capital, the governor reiterated his “pivot” policy, for which he has no mandate and, two years after announcing it, has not delivered the desired result of securing a federal bailout.
The not-so-subtle message behind the pivot is that Uncle Sam’s generosity alone could prevent the CNMI from succumbing to the temptations of big, bad China’s blandishments. However, it’s an unconvincing pitch. The CNMI is part of the U.S. and has no say over foreign affairs. As pointed out by the CNMI’s new delegate, the U.S. has the authority to “oversee” (i.e., block) foreign investments in the Marianas to prevent potential national security risks — and should exercise it. In any case, unlike independent Pacific Island nations, the CNMI cannot make any deals with China, which cannot “exploit” this Commonwealth’s “economic vulnerabilities” without America’s go-ahead.
Not surprisingly, the governor’s “pivot” seems to be a hard sell in Washington, D.C.
Simply put
FOR tourism industry stakeholders, the issue is pretty straightforward. The CNMI’s tourism-based economy needs more tourists. The CNMI should not be overly reliant on one market (South Korea) while trying to resuscitate another market that remains mostly unresponsive (Japan). Instead, the CNMI should tap into other markets, and that include China, which used to be the islands’ second largest source of tourists. Hence, the administration should 1) join the delegate in asking the U.S. to allow the resumption of direct flights from mainland China; and 2) authorize MVA to again promote the CNMI in mainland China.
The CNMI, after all, is just another U.S. jurisdiction like California or Hawaii trying to bring in more tourists, even from China.
It’s not a quick fix, to be sure, but it’s the only thing that this administration hasn’t tried yet.
Unpalatable options
IF the governor is hell-bent on pursuing pivot no matter the hardship — as he himself has acknowledged — that it is inflicting on the CNMI’s tourism-based economy, then he has only two fiscal options: rein in government spending or impose new tax burdens on already struggling taxpayers.
He earlier said that the government should live within its means, but he took out a $51 million loan instead. He also said he didn’t want to raise taxes but ended up proposing tax hikes anyway. He once said that the cost-cutting and other measures recommended by the Fiscal Response Summit “should have been done a long time ago.” But that was already close to five years ago.
In the meantime, while the governor banks on the munificence of a new U.S. President who has vowed to cut federal government spending, what then?
