Senate President Edith Deleon Guerrero presides over a meeting with the officers and members of the Saipan Chamber of Commerce and the Hotel Association of the NMI in the Senate chamber on Wednesday.
THE islands’ only industry, tourism, is faced with daunting challenges that include a limited workforce, an exchange rate that makes travel to the CNMI more expensive, the possible revocation of the China visa-waiver program, and crimes against tourists. According to the Marianas Visitors Authority, “the strong U.S. Dollar and weaker Korean Won and Japanese Yen are…influencing travelers from those countries to choose non-U.S. destinations at this time.”
Some U.S. lawmakers, for their part, have called for an end of the visa-waiver program for Chinese tourists, citing activities that include drug trafficking, illegal immigration, organized crime, among others. MVA Managing Director Chris Concepcion said this proposal would “kill” Chinese tourism, which, prior to the pandemic, was the CNMI’s No. 2 market with 185,536 arrivals in 2019. This figure plummeted to 18,550 in 2020; 12 in 2021; and 186 in 2022.
In August 2023, the China National Tourism Administration reinstated its approved destination status agreements with some countries, including the United States, a policy decision that extends to the CNMI. But due to national security concerns and geopolitical tensions between the U.S. and China, Gov. Arnold I. Palacios announced that his administration was pivoting away from “reliance on the Chinese tourism market” while seeking “to strengthen our relationships with our federal partners and allies in the region.”
Tourism stakeholders and other members of the business sector have informed the administration and lawmakers that the tourism economy would collapse without a new market. To address federal concerns regarding Chinese tourists, the business community is also advocating for the implementation of the CNMI Economic Vitality & Security Travel Authorization Program or EVS-TAP. The CNMI Senate and U.S. Congressman Gregorio Kilili Camacho Sablan have also expressed support for EVS-TAP.
Manpower and other woes
The struggling tourism industry also has to cope with the federal “touchback” rule that requires CW-1 visa holders to leave the CNMI every three years. The worker is required to remain outside the U.S. for a minimum of 30 days, but the processing of a CW’s renewal application can take up to seven months. Hotel Association of the Northern Mariana Islands Chairman Ivan Quichocho said the tourism industry is grappling with the lack of workers due to touchback on top of a potential increase in the business gross revenue tax as proposed by the governor, and crimes against tourists. “Between a potential increase in taxation, even if we still haven’t fully recovered, [and] a shortage of key staff — these stack up. And it can be pretty devastating for the industry… expecting tourists to come back and yet we don’t have the manpower,” he added.
Police presence
As for crimes against tourists, MVA managing director Christopher Concepcion said there is a need for more police presence at tourist sites. He said crimes targeting tourists might drive potential visitors away. “We pride ourselves on being a safe destination, and for the most part we are indeed a very safe destination with low crime rates relative to the size of our population,” he said. “But every time a crime is committed against a tourist, the problem is amplified because their experience is shared with friends and family overseas, and oftentimes posted on social media, which does immense damage to our reputation as a secure place to visit.” He added, “We’ve received reports directly from visitors and tour operators about the increase in crimes, including a convertible whose top was ripped open and had items stolen, car windows being smashed at tourist sites, and passports and credit cards found in trash bins in Marpi.”
Asked for comment, Department of Public Safety Commissioner Clement Bermudes said, “Police officers are out there, but we can’t be all over [the island] at one time…. We can reduce [crime] by removing valuables in easy view. Even at the beach, have somebody stay back. It may be asking too much, but that’s the best security that we can have.”
<p style=”text-align: center;”><strong><em>”Tourism stakeholders and other members of the business sector have informed the administration and lawmakers that the tourism economy would collapse without a new market.”</em></strong>