Casino plans, flights, buildup key to Rota’s economic future

Drive down the main thoroughfare in Songsong, the most developed village on Rota, and the toll the CNMI’s recent economic downturn has taken on the island becomes immediately apparent. Scores of buildings are vacant and falling into disrepair. Many businesses have closed and most of the few that remain open are struggling to survive in a place that is slowly becoming a ghost town.

However, an economic revival could be on the horizon for Rota if new airline services to the island can bring tourists to the island and opportunities on the horizon, like the pending military buildup in Guam and new rules opening the door to casino gambling, can attract new business.

Rota’s economy has suffered in recent years due in part to a major decline in tourism to the CNMI. According to local officials, many on the island rely on the government for employment while others depend on government assistance or work on farms.

“It’s really tough right now,” Sen. Paul Manglona (R-Rota) said in an interview this week. “There’s no work, not many tourists and the prices for food are high.”

Yet through the efforts of lawmakers and the island’s leaders, the tourism industry there has recently seen a noticeable boost due to a new chartered airline service deal that has brought droves of new visitors to the island from Japan.

Henry S. Atalig, chief of the CNMI Department of Commerce’s Rota branch, said in an interview that the Japanese flights gave an estimated 10 percent jump in customers to Rota’s hotels, restaurants and shops.

A renewal of the flight deal—inked with a tour company and Continental Airlines—is likely, he added, and a similar deal to attract Korean travelers to the island through a chartered flight service next year could draw more tourist dollars to Rota. The flights are a key element in an effort by local leaders to jumpstart the economy.

“Our main economic activities here on Rota are agriculture and tourism,” Atalig said. “We never had the garment industry and what we’re trying to do now is shift away from the government being the largest employer here.”

Meanwhile, the farmers of Rota have carved out a niche in the local produce market by selling staple crops like sweet potatoes and business people are working to market their home, promoted to travelers as “Nature’s Treasure Island,” as an ecotourism destination.

These developments come as Rota businesses are eying a planned military buildup in Guam as a major prospect for economic growth. Guam is now preparing for the arrival of an estimated 8,000 U.S. armed forces personnel and their 9,000 family members, who are slated for relocation from Okinawa, Japan, to the island.

The move will require the construction of marine infrastructure for naval ships and a host of new building projects. The military’s plans are also expected to touch Pagan and Tinian, which officials have said could serve as a staging ground for training.

“We hope to capitalize on that buildup,” Manglona said. “There’s going to be some spill-over.”

For Rota, the nearest island in the CNMI to Guam, the buildup means a chance for added tourism and a burgeoning new market close to its shores. For example, the owners of newly opened aquaculture operation say they are looking to Guam and the buildup as an ideal venue to sell locally raised shrimp.

According to Atalig, farmers on the island also see an opportunity in the buildup and Rota’s leadership has already begun fostering relationships with military officials in order to take advantage of it.

Tourism on Rota could also see an increase due to casino gambling, an industry that is poised to take root on the island in the near future after a newly formed commission completes a series of rules and regulations for it. Rota’s voters approved opening the island to casinos in a ballot measure during the last election.

Rota Gaming Commission chair Diego Songao said in an interview that at least three firms from Japan and Korea have already expressed interest in building casinos on the island. However, plans for the casinos are on hold now until the release of the regulations and when exactly that might happen is uncertain as the commission, he said, is waiting on funding to hire a consultant needed to guide the process.

Yet whenever the rules are released, casino gaming has the potential to serve as a major economic boon for the island.

“If we do this carefully, we can attract good investors,” Manglona said. “I think that’s a case for optimism.”