Imperial Pacific = economic miracle

The Imperial Pacific Resort in Garapan, Saipan. (Contributed Photo)

The popularity of the Northern Mariana Islands among travelers is peaking anew.

The December 2016-ending arrivals capped what CNMI tourism experts and stakeholders have predicted: the Northern Marianas is not only past the period of recession; it is now in “speedy recovery” period.

In essence, the entry into the local economy by the Hong Kong-based investment powerhouse is now the economic miracle that is unfolding.

According to an independent report prepared by a leading tourism and travel group—Horwath HTL—that was presented in January this year for the Marianas Visitors Authority, the entry of Imperial Pacific International, among others, brought “considerable attention” to the islands.

“[T]he CNMI in general, and especially Saipan, received considerable attention from new investors, triggered by the grant of new casino (license)…,” said a portion of the 45-page report of Horwath HTL.

Horwath HTL is considered the world’s leading hotel, tourism, and leisure consultant.

MVA, the government’s tourism and marketing arm, commissioned the group for an independent feasibility and sustainability study on the islands’ tourism development.

Visitor arrival grew 11 percent by end of 2016 with 530,525 arrivals compared to 478,592 in 2015. This is only the fifth time since 1998 that the volume of arrivals breached the 500,000-mark. It was this period when Imperial Pacific’s investment started to make waves.

According to Horwath HTL, while the 2016 arrival was high, similar to the level before Japan Airlines’ pullout in 2005, it is around 200,000 less than the market’s peak year.

This positive growth brought by Imperial Pacific has been felt within. Imperial Pacific’s contributions have also helped breath new life to the local economy.

The Hong Kong-based investment giant’s flagship investment on Saipan has already added millions of dollars to the economy in additional revenues through taxes and fees that were generated in just the last two years compared to the NMI government’s revenue intake in the last 10 years combined.

From 2015 to April 2017, Imperial Pacific contributed $201.6 million. These were from combined payments of Business Gross Revenue Tax, corporate income tax, excise tax, casino license fees, Commonwealth Casino Commission operation fund, donations and payroll withholding tax.

The company is now the largest private sector employer in the Marianas. With over 1,500 employees it remitted $6.630 million in payroll withholding taxes to local treasury. This covers the period from 2015 to end of April 2017.

These contributions led to a revived economic vigor. More residents found employment and public services received additional funding. These are for government pension plan for the nearly 3,000 retirees, public education, hospital/medical care, power, water, and sewer (utility) services, to mention a few.

From Day 1 when Imperial Pacific decided to invest on Saipan, its intention was to also help Saipan recover and rebuild its economy, after being battered with external factors such as the Asian financial crisis in 1998 and 1999, the turbulent global environment in early 2000, the SARS crisis in 2003, and the decline of the Japan arrivals—the principal travel market—resulting from the pullout of Japan Airlines in 2005.

Today, there is renewed confidence on the islands. Imperial Pacific is being credited for this turnaround.

Arrivals are not only back, it is climbing fast to levels that independent travel watchers weren’t expecting that soon. Arrivals from China took over the market, accounting for over 30 percent of the total volume and replacing the historically dominant player, Japan.

The seriousness of Imperial Pacific’s investment and commitment to the islands’ recovery spurred unprecedented global attention. Existing hotels and businesses are being renovated, if not flourishing anew.

It’s just a matter of time when all of the Northern Marianas will experience a very stimulated economy it once felt.

And Imperial Pacific believes that Saipan has always been a strategic location.