‘Without Russian, Chinese tourists, economic future of CNMI is bleak’

Citing that the Commonwealth direly needs continued access to Chinese and Russian tourists to revive its dwindling economy, Marianas Visitors Authority chair Marian Aldan-Pierce called for the inclusion of these two key markets in the final rules of the Guam-CNMI Visa Waiver Program.

“The CNMI strongly recommends that the final rules be promulgated as soon as possible and that they contain a provision for continued visa waiver entry for Chinese and Russian citizens either into the CNMI only or into the CNMI and Guam,” Aldan-Pierce said, speaking before a subcommittee hearing on Public Law 110-229 on Friday in Washington, D.C.

Aldan-Pierce, who is also president of DFS Saipan Ltd., told the House Subcommittee on Fisheries, Wildlife, Oceans and Insular Affairs that, without continued access to the Chinese and Russian tourism markets, “the economic future of the CNMI is bleak, if not dead.”

Aldan-Pierce said the CNMI’s total direct and indirect impact of tourism revenue for fiscal year 2011 through May 2011 is $450.8 million. However, if you take visitors from China and Russia out of that equation, that revenue would drop by 25 percent or to $110.8 million, she said.

And the bleeding wouldn’t stop there. Aldan-Pierce said the total number of government jobs supported by tourism revenue this year is 2,180. Without visitors from China and Russia, 15.2 percent or 331 government jobs would have been lost, she said.

Meanwhile, the total number of private sector jobs supported by tourism revenue this year is 2,437. Again, without visitors from China and Russia, Aldan-Pierce said that 15.2 percent or 370 of those jobs would have been eliminated.

“Clearly, to enact a Guam-CNMI Visa Waiver Program without allowing the CNMI access to visitors from China and Russia would have a detrimental and long-standing effect on the economy and livelihood of the people and would be contrary to the intent of the CNRA [Consolidated Natural Resources Act],” she said.

Stop-gap measure

Delegate Gregorio Kilili C. Sablan, meanwhile, said the current parole authority extended by Department Homeland Security in lieu of the Guam-CNMI Visa Waiver Program is only a stop-gap measure. DHS should normalize the system with a concrete plan that will fulfill the intent of Public Law 110-229 to “expand tourism,” he said.

“When DHS published rules on the visa waiver program created by 110-229, Russia and China were excluded. But tourism from these countries was growing, and the Northern Marianas needed visitors. So we convinced [DHS] Secretary [Janet] Napolitano to use her parole authority to keep Russians and Chinese coming to the Northern Marianas. That helped. But it’s only a stop-gap. It can be revoked at any time. So this parole system does not encourage new investment in the Russian and Chinese markets,” he said in his welcome address during Friday’s public hearing.

Gov. Benigno R. Fitial, for his part, lamented DHS’ decision to block the Guam-CNMI Visa Waiver Program and, like Sablan, said that the agency’s parole authority is only temporary.

“We understand that the Department of State has refused, on policy grounds, to implement what has been mandated by Congress. Our tourist industry—the principal economic basis for our economy—has been seriously hurt. While we appreciate the efforts of Secretary Napolitano to give us a temporary parole system, such a system simply does not allow for necessary continued investments in growing these markets due to the fact that the program can be halted without notice,” he said in his testimony.

Office of Insular Affairs director Nikolao I Pula Jr. said that while immigration transition in the CNMI has encountered a number of issues that require resolution, this has not deterred the federal government from continuing to seek a smooth transition.

“We realize that change is difficult, but strongly believe that the federal administration of immigration in the CNMI will bring about higher security for the Marianas archipelago as well as an improved environment for business and provide economic opportunities to the people of the CNMI,” he said in his testimony.