CPA request to DOT for added funding garners broad support

Various CNMI officials and stakeholders have rallied together to support the Commonwealth Ports Authority’s recent request for $30-million supplemental funding from the U.S. Department of Transportation.

Tan Holdings Corp. president and CEO Jerry Tan, who is an appointed member of the U.S. Travel and Tourism Advisory Board, and CNMI officials like Lt. Gov. David Apatang, Delegate Gregorio Kilili C. Sablan (D-MP), Tinian Mayor Edwin Aldan (R-Tinian), and various CNMI legislators have written separate letters supporting CPA’s recent request to the DOT and outlining the risks the CNMI face due to its faltering tourism sector.

Tan, who wrote directly to Transportation Secretary Pete Buttigieg, stated that he supports CPA request for supplemental funding.

“I have discussed the request to your department with CPA officials and support both their explanation of the current circumstances and their request for assistance,” he said.

As a member of the TTAB with experience in the CNMI’s tourism economy, Tan shared the unique conditions the CNMI faces in its attempts to rebuild its economy, which depends heavily on tourism.

“Recent statistics have shown that, in spite of considerable effort from the CNMI government and CPA, travel to the CNMI remains historically low and hindered by low travel demand among key source markets. To operate in a depressed outbound market among regional destinations eager to decrease costs of travel and accommodation will require the CNMI to put forward even greater resources to remain competitive in the market,” Tan said.

“However, as stated in the CPA’s request, these resources are unavailable. The resulting need for increased charges to offset the loss of airport revenue is well understood to be a short-term solution with diminishing value as the increasing costs may witness lower demand for the CNMI as a destination. The request of CPA at this juncture allows the CNMI to prevent its entering into a ‘vicious spiral’ in which the measures taken to respond to decreased travel demand will in turn further exacerbate the underlying issue of low arrivals. This spiral without additional federal support will have wide-ranging impacts to employment, and business and government revenue derived from economic activity,” he added.

Tan acknowledged that the request for additional support will require significant consideration and assessment, but he stated that short-term support for the CPA at this point can potentially be instrumental in securing a lasting framework for the CNMI’s economic recovery.

“As a resident of the CNMI, a stakeholder within the tourism industry and as an advocate for the advancement of the Western Pacific region, I am tremendously grateful for the monumental efforts that have been undertaken by CPA and the U.S. Department of Transportation to continue to safeguard and support our community. It is my hope that the context and challenges facing the CNMI’s economy after three years of challenges caused by COVID-19 provides additional resources to aid in your consideration of CPA’s request,” he said.

In a letter to CPA executive director Christopher Tenorio, Apatang stated that he understands CPA’s need for additional funding and he is committed to supporting the agency in its efforts.

“I am committed to supporting CPA’s efforts to obtain federal assistance to offset any revenue shortfall that may hinder airport operations in the next two years during our islands’ economic recovery,” he said.

Sablan echoed Apatang’s statement, saying he fully supports CPA’s efforts.

“I recognize that recent super typhoons that devastated the Marianas, shortly followed by a global pandemic, have gutted revenues across all Marianas ports. These same compounding disasters have likewise crippled tourism, our sole economic industry, making a speedy recovery even more unlikely. Marianas airports have clearly been harmed by the severe downturn in air service resulting in a precipitous decline in revenues. Thus, I support CPA’s efforts to seek the necessary financial assistance to maintain operations and keep our airports functioning optimally for the traveling public,” he said.

Also in letters addressed to Tenorio, Aldan, Senate president Edith Deleon Guerrero (D-Saipan), Sen. Karl King-Nabors (R-Tinian), and Rep. Vincent Aldan all stated their support for CPA’s efforts to obtain federal assistance.

CPA had asked DOT for $30 million in supplemental funding, specifically $15 million for fiscal year 2024 and $15 million for fiscal year 2025 to keep operations going until fiscal year $2026.