CNMI loses luster •Hotel officials hit double-faced policy of gov’t toward investors

Due to the instability of local laws and regulations, hotel presidents and general managers believe that the CNMI has become an unfavorable place to do business.

This was the assessment made by hotel executives in a survey conducted by the Hotel Association of Northern Mariana Islands to find out how they look at the investment opportunities in the CNMI.

In a recently held economic conference, Ron Sablan, president of the Hotel Association of Northern Mariana Islands, urged Legislators to stabilize the investment climate by making laws that will encourage, stimulate and support businesses.

Sablan has one description on the current business climate: “a triangle that has us trapped and choking for air.” He emphasized that the stability of local laws is one factor which influences the decision of the businessmen to come here aside from the availability of local labor pool.

“Our government needs to recognize that there needs to be a balance between what the constituents want and what the business community needs in order for our economy to return to what it once was,” said Sablan during a conference dubbed “Planning for the CNMI’s Economic Future.”

Only three to five hours away from major Asian markets, the Northern Marianas offers an enormous untapped tourism potential for prospective investors including a favorable tax system. Members of the hotel association have many good ideas for tourism development projects which could lure more visitors to come here but Sablan raised doubts if anyone would invest in them.

Hoteliers have also expressed concern on the planned federalization of immigration and minimum wage which would put an end to the ability of many establishments to hire the needed staff and pay salaries that are appropriate to the island’s economy.

U.S President Bill Clinton has insisted on the application of federal immigration and minimum wage laws to the Northern Marianas because of the failure of the CNMI to address various problems arising from its reliance on foreign workers.

However, Sablan said the economy of the CNMI is closely tied to Asia and has no relevance to the U.S. mainland. He said legally-mandated benefits such as subsidy in food and housing, insurance and provision of local transportation must be removed if an increase in minimum wage to the U.S. level would be adopted.

But the federal takeover on immigration concerns more the members of the hotel industry as non-resident workers now make up approximately 65 percent of the hotel work force today.

Sablan gave the assurance that hotels would have preferred to hire locals but there are not just enough of them to fulfill all the jobs. Since the hotel industry is a 365-day-year, 24-hour-a-day employer with a wide variety of jobs to fill — from housekeepers to sous chefs, he said there has to be a study on whether or not locals want the salaries businesses can afford.

“Can local work ethics be improved to be in line with the reality of our economic situation and can we improve the level of education and training, provide more trade and apprenticeship programs that will give the local people the skills our companies need?” Sablan asked.