Del Benson
AS the Northern Mariana Islands emerge from their recent election cycle, attention is shifting to the pressing economic challenges facing the U.S. territory. With Republican candidate Kim’s victory signaling potential stronger ties to Washington, local leaders and business experts are calling for a unified approach to economic revival.
Tourism, long the backbone of the CNMI economy, faces significant hurdles. Recent reports from Korean visitors indicate safety concerns in Garapan, the islands’ primary tourist district, with many describing the area as deserted and deteriorating. This feedback comes at a crucial time when the territory is grappling with vacant properties across major locations, including Capital Hill’s Vescor and Miller Estate properties are several examples.
The territory has seen approximately an over 10% population decline, with residents departing for job opportunities elsewhere. Empty hotel rooms and vacant apartment buildings stand as stark reminders of more prosperous times.
Let me share a different approach from our standard economic model. Here is my analogy.
Think of two towns that each got $100 million to grow their economy.
Whaleburg spent all their money to attract one huge factory (their “whale”). When the factory was doing well, everyone had jobs and the town was rich. But when the factory closed years later, the whole town suffered — like losing their only whale.
Fishaven spread their money across 200 small businesses (their “school of fish”). They had all kinds of shops, restaurants, and small companies. When some businesses had problems, others were still doing fine. Like fish in the ocean, when some fish swim away, there are still plenty left.
The lesson? Having many small businesses (like a school of fish) can be safer than depending on one big company (like a whale). When trouble comes, it’s better to have many smaller sources of jobs and money than just one big one.
It’s like the old saying: “Don’t put all your eggs in one basket!”
“Success breeds success, failure breeds failure,” notes one business leader, emphasizing the importance of building a sustainable economic ecosystem.
While some stakeholders hope for increased military tourism, I suggest this may not significantly impact luxury retail sectors traditionally supported by Asian tourists.
The territory’s energy costs remain a critical concern, though experts anticipate potential relief through changes in U.S. energy policy and reduced shipping costs. However, with much of the CNMI’s energy supplies routing through Singapore, price improvements may be modest.
As the CNMI moves forward, community leaders are emphasizing the need for unity in economic planning and implementation, suggesting that the territory’s recovery will require coordinated effort across all sectors of society.
