HANMI: Let CNMI chart its economic path

The Hotel Association of Northern Mariana Islands has asked the U.S. House Committee on Resources to allow the Northern Marianas chart its own path to economic maturity, but sought the assistance of the federal government in solving local labor and immigration problems.

In his testimony before the committee hearing last week, Ron Sablan, president of HANMI, said the people, businesses and government of the CNMI are more knowledgeable and in a better position to address the needs of the island community.

“Our local government has made significant reforms and has the continuing flexibility to make adjustments as the economy ebbs and flow,” said Sablan.

A year ago, when he testified before the U.S. Senate on the same issues, Sablan said the hotel industry has asked for the federal government’s assistance in enforcement but its efforts were more focused on finding faults and capitalize on attracting negative media attention.

“We ask for genuine assistance by federal agencies in cooperation with out local counterparts to enforce applicable statutes, similar to the successful relationship between local and federal drug enforcement agencies. Only through a cooperative approach can we accomplish real solutions,” he said.

The CNMI’s tourism industry would suffer if the U.S. Immigration and Naturalization Act were to be mandated in the Northern Marianas. Some 49 occupations in the Code of Federal Regulations have been identified by the U.S. Department of Labor as having sufficient U.S. workers who are able, willing, qualified and available to work.

This means that INS will not allow certification for permanent employment of foreign workers for these occupations which are virtually all of the jobs in the tourism industry.

Such prohibition will eliminate half of the Saipan-based personnel of the Japanese travel agencies and ground handling companies. Sablan expressed concern on the harsh message it will bring to the Japanese management of these companies, which bring in roughly 90 percent of the Japanese tourists to the islands.

“If the CNMI is mandated to hire outside of the region, recruitment costs will skyrocket. In turn, if the cost of doing business escalates during the Asian economic crisis, there will be no way we can pass these costs on to our visitors without completely losing our marketability as a destination,” said Sablan.

During more prosperous times, HANMI supported local legislation that would require a gradual increase of 30 cents per year until the CNMI reached the U.S. minimum wage.

However, with the economic recession brought about by Asia’s financial crisis, Sablan said hotels have to reduce costs in order to survive and a mandated wage increase would force establishments to downsize further. Such move will further result in the decline in the quality of service and the competitiveness of the Northern Marianas as a destination.

In opposing any increase in the minimum wage, the HANMI leader said the Northern Marianas must have the local flexibility to determine the appropriate wages for the island given its unique economic circumstances.