How to boost tourism arrivals
THOSE complaining about the governor’s proposed spending levels should hold their fire — at least until they see the amended version, which the governor is expected to submit in July.
The revenue projections for the governor’s FY 2025 budget proposal were calculated early this year before the Hyatt closure announcement, the Asiana office closure, and the dismal occupancy numbers in summer that the hotels are now bracing for. In short, the governor’s budget numbers are likely to be changed, and they are likely to involve more cuts.
No surprise there, of course.
Before the pandemic, the CNMI had three major markets: South Korea, China and Japan, in that order. Today, the South Korean market is finally recovering, but arrivals from Japan are still down, and, more significantly, so is China’s.
“…Chinese tourism pre-pandemic, it was close to [nearly half] of tourists that come to the Commonwealth…. The China market is a significant market for [our] tourism industry.” Without it “[w]e’ve had to make drastic sacrifices in government operations and public services. People are leaving the Commonwealth because of the depressed state of the economy right now, because of the major impact of losing close to half-a-billion to a billion dollars’ worth of economic activities.”
Who said that?
The governor, in an interview early this year with the Voice of America.
Government employees, retirees and vendors — take note. As the governor himself has stated, “drastic sacrifices in government operations and public services” are being made, and people are leaving the islands amid an economic depression because China arrivals are way, way down compared to pre-pandemic levels. Why? Because there are still no direct flights from China. What’s a possible solution? The U.S. Department of Transportation issued a flight cap order in response to China’s Covid-19 restrictions. USDOT should now lift the cap for the CNMI as requested by HANMI, the Saipan Chamber of Commerce, the Senate president and Congressman Kilili. It would be extremely helpful if the governor — or the lt. governor in his capacity as acting governor — joins the rest of the CNMI in requesting USDOT to allow for the resumption of China-Saipan direct flights.
“Regaining access to the Chinese tourism market would help our ailing economy recover.”
Who said that? Congressman Kilili. Surely, the governor agrees.
Focus
REVIVING tourism is an economic issue, but most of the ongoing discussions about it have been soiled by politics. What should have been a straightforward discourse on how to improve the economy so the government can collect more revenue has reignited a political argument that many voters believe they already resolved in Nov. 2022.
There is a need to focus, especially on the administration’s part. It is the major actor in any effort to boost arrivals. It basically runs MVA and CPA. It can still count on the House’s cooperation, and although the Senate is now “more independent,” all its members are willing to go along with anything that could revive the economy.
Guess who will get the credit for an increase in tourism arrivals, unmistakable signs of economic recovery, and improved government revenue collection? No one else but the governor. Conversely, however, he will be blamed for the economic decline that we have been experiencing since he was sworn in. He is the chief executive. He is in charge.
It they haven’t already done so, perhaps the business community should also enlist the lt. governor’s help in the lobbying efforts to resume direct China-Saipan flights especially now that the EVS-TAP will be in effect to address federal concerns regarding the China market.
In return, with HANMI and the chamber cheering them on the sidelines, the Senate and the House will adopt a joint resolution expressing full adherence to the governor’s pivot policy while reiterating the CNMI’s unwavering, indomitable, rock-solid devotion to America’s defense posture in the region to ensure peace, stability and freedom of navigation.
Seriously
THESE are serious times. Arguing over not-so relevant topics is not a serious undertaking. No one wants to dispute the governor’s policy pronouncements on China or overdependence, etc. What serious members of the community want is to find common ground with the governor. We believe it exists. We want this administration to succeed. We want the government to be able to pay at least some or several of its so many obligations, especially to its employees, retirees and vendors. We know the governor wants the business community to remain afloat. The quickest (relatively speaking) way to do that, as he knows, is to boost tourism arrivals. The South Korean market is recovering, but even at full throttle it is only about 50% of the pre-pandemic arrivals. The Japan market remains weak and perhaps needs more time and more promotions. It will also take time and effort and money (that we don’t have) to develop new markets. Missing in the equation is China.
We do not want to be overdependent on China, but we cannot be overdependent on Korea either. Waiting for a federal bailout is not a recovery plan. The CNMI’s financial clock is ticking.
China or bust? We’re already “busted.” See the numbers from Finance, HANMI, MVA. Hear what government agency heads, their employees, private sector employers and their employees are saying. Go to the airport and talk to the residents who are leaving the island for good.
