Managaha no longer off limits to other water sports businesses

The Department of Public Lands repealed Monday its Dec. 13, 2011, rule, paving the way for marine sports operators other than Tasi Tours and its partners to pick up individuals from Managaha for parasailing, banana boating, snorkeling, scuba diving or other water sports-but with some conditions.

“The services must be procured before traveling to Managaha, and not solicited or purchased after arriving at Managaha,” acting DPL Secretary Pedro Itibus said in a two-page May 7, 2012, letter to marine sports operators.

Cora Pangelinan, co-owner of Island Marine Sports or IMS, said even before DPL promulgated its December rule, they and other operators have not been soliciting services on Managaha.

“We’ve lost a lot of revenues because of DPL’s rule. I’m glad they repealed it,” Pangelinan told Saipan Tribune.

Pangelinan and IMS co-owner David Pangelinan hired the services of the Law Office of F. Matthew Smith in asking DPL to reconsider its December rule.

They pushed for DPL to review its rule and relevant statutes and then the repeal the December rule. As a result, not only IMS was helped, but other marine sports operators as well.

“I am thankful to attorneys Smith and Mark Scoggins for helping us,” Pangelinan added.

Adonis Santos, owner and president of Auto Marine, said last night he’s relieved that DPL finally repealed its rule. He said the restrictions were making a dent on their business, adding that they do not solicit services on Managaha but were only fulfilling services already arranged before the tourists went to Managaha.

In his May 7 memo DPL’s Itibus announced “the repeal of the rule first promulgated in its December 13, 2011 letter” to various marine sports operators regarding their operations related to Managaha.

The specific issue is whether marine sports operators can pick up individuals from Managaha for water sports.

“The answer depends on the manner in which the marine sports operator’s services were required,” Itibus said.

Since 2001, Tasi Tours and Transportation Inc. has held exclusive concession rights on Managaha, a world renowned snorkeling site visited by over 60 percent of all tourists who come to the CNMI each year.

Pursuant to the concession agreement, Tasi Tours holds several exclusive rights to sell products and services on Managaha.

“Accordingly, marine sports operators are not allowed to solicit services on Managaha Island. The [DPL] is empowered to enforce this rule pursuant to The Rules and Regulations Regarding the Commercial Use of Managaha Island 5C (Sept. 15, 1993),” Itibus said.

The situation differs with respect to services procured off Managaha, since concessionaire’s exclusive rights are limited to Managaha.

This is what other marine sports operators have been arguing with DPL about, saying that even before tourists go to Managaha, they have already procured their services for water sports such as banana boat sailing and parasailing. They said they do not solicit customers on Managaha.

DPL’s Itibus, in his letter, said marine sports operators are allowed to sell packages that include transportation to and from Managaha that include water sports.

He said it is clear, for example, that a marine sports operator could transport tourists to Managaha for an afternoon, and then take those same tourists on a banana boat ride in the lagoon on their way back to Saipan.

A similar situation exists where a marine sports operator sells a package whereby the operator transports a group of tourists to Managaha, picks up those same tourists for a banana ride in the lagoon, returns those same tourists to Managaha for a period of time, and finally picks those same tourists up to transport them back to Saipan, he said.

“In this case, the marine sports operator has already sold a package, and is merely picking up those tourists to fulfill the package,” Itibus said.

He also said it is evident that the economic downturn has affected the concessionaire, several independent marine sports operators, and the CNMI in general.

“The arrangements described herein are consistent with both the text of the Concession Agreement and past practice,” he added.