Saipan lost investors to Guam • Businessmen complain of restrictive investment laws in CNMI

The Northern Marianas has once again lost a substantial amount of investments to its neighboring island of Guam, apparently due to restrictive investment policies in the Commonwealth.

Due to its restrictive investment laws, Northern Marianas has been losing potential foreign businessmen to Guam where investors can get a greencard and American citizenship in five years for a minimum of $250,000 in total investments..

Aside from not requiring foreign investors to post a cash security deposit, Guam has also streamlined the business permit renewal process by making the licensing office perform all clearances.

Some Korean investors planning to put up a $25-million shooting resort in the CNMI have abandoned the project and are now in the process of negotiating with the Government of Guam, which is reportedly more enthusiastic to the galleries.

This turn of events translates to over $1 million in annual revenue loss for the Commonwealth government, aggravating the already dampened economic situation in the Northern Marianas.

The pullout also represent a huge loss of at least 10,000 visitors to the islands each month and more than 200 employment opportunities for local workers. These do not include potential revenue losses from income taxes and the workers’ spending that may support other businesses.

Korean investors said the new version of the shooting resort bill requiring $5 million for the exclusive license fee for 15 years is “too absurd” for them to even consider.

However, the idea of shooting resorts in the CNMI coined by several Korean businessmen may still materialize since there are at least three groups of investors proposing to establish the facilities in the Northern Marianas.

One company is persistently raising hopes the CNMI Legislature and the Administration would change their stand on the establishment of the shooting facilities on the islands, although it has also signified intentions to abandon the Commonwealth.

Kim Kyong Duk, director of the CNMI International Shooting Resort, Inc., said there is no way shooting galleries could be profitable on Tinian and on Rota due to transportation and infrastructure problems there.

Mr. Kim said the business is more likely to flourish on Saipan where public infrastructure and transportation facilities are at par with other neighboring countries.

He added that the CNMI is asking too much for initial capital outlay, which is hurting the Commonwealth’s chances at attracting a new set of visitors such as shooting aficionados.

The Legislature previously toiled at the idea of excluding Saipan from the list of islands that will divide the $25-million investment for shooting galleries, as it passed legislation that would pave the road for the establishment of such facilities on Tinian and on Rota.

Introduced by Sen. Edward U. Maratita, Senate Bill 12-95 amends the CNMI Weapons control Act to allow investors to develop facilities like target ranges for rifle competition, and skeet shooting in the Northern Marianas, except on Saipan.

Officials said the CNMI holds great potentials to attract major developers interested in building shooting resorts for a variety of activities that are safe, in contrast with public misconception about the dangers these facilities pose.

However, they said it would be better for the CNMI to limit the location of the shooting resorts to Tinian and Rota since these islands are less populated but where the need to benefit from increased economic investment is greatest.

Investors who have signified intentions to establish shooting resorts in the CNMI have expressed reluctance in pouring in all $25 million of their money exclusively to galleries in Rota and Tinian, as they argued that the move is likely to fall flat due to accommodation and transportation problems.

With $25 million capital for the shooting galleries, investors are wary that gun resorts to be established on the two islands will not be able to generate as much return of investments as it would do on Saipan. (With reports from EGA)