Admin nears release of typhoon impact on revenue

The administration of Gov. Eloy S. Inos is close to releasing dollar figures to account for the “hit” Typhoon Soudelor had on Saipan’s economy.

The Department of Finance is currently looking at “revenue points” like revenue tax, customs fees, and business license fees. Once this is completed the administration will be able to crunch a larger number detailing the impact to the economy, Saipan Tribune learned.

The most immediate numbers after the storm released by the Marianas Visitors Authority on Aug. 12 projected a $1.3 million impact on tourism alone. This hit was specifically on business gross and hotel tax revenue, as some 9,360 passengers cancelled their flights after the storm, and the government continued to run, releasing paychecks to worker and retirees.

The administration has had some questions regarding the recalculation of the government budget after the typhoon but has not yet seen the need for a full discussion on austerity measures.

Administration officials expect an “injection of capital” from typhoon relief aid that may lessen the impact on economy.

For example, the $3.5 million released under Disaster Nutritional Assistance Program is “fresh money” in the hands of the 9,971 consumers processed under the program.  Also, federal individual assistance that goes to consumers buying new materials for their homes are fresh dollars now circulating in the economy.

“Naturally we are expecting an impact to government revenues as a result of Typhoon Soudelor,” the administration said in a statement. “However, we are hopeful that we will be able to mitigate some of the impact through direct capital injections from the FEMA Individual Assistance program, DNAP, and other relief programs and activities, in addition to the recent $6 million grant for emergency workforce development from the U.S. Department of Labor.”

Other impact includes the hit retail stores took, and the effect of dislocated workers not receiving paychecks because their establishments were damaged or destroyed by the storm.

Hotels on island have maintained an 85-percent occupancy rate in August, which has been partly attributed to the influx of relief workers from the Guam Power Authority, Federal Emergency Management Agency, U.S. Army Corps of Engineers, and Red Cross, among others.