The Commonwealth of Northern Mariana Islands (CNMI) is facing hard times. Ten years ago Saipan was home to 34 garment factories, producing clothing for labels such as Polo Ralph Lauren, Tommy Hilfiger, Gap and others. This industry has now collapsed and the tourism industry is also in decline. With the US authorities taking over local immigration from 1 June and Chinese tourists not part of the visa waiver scheme, the islands can be expected to lose nearly US$340 million in tourism revenue.

Perhaps indicative of the CNMI’s problems is yesterday’s suspension of the instrument landing system project at Tinian’s airport. The only island so far to have casino operations completed a second airport terminal two years ago to handle flight departures, but it has never been used. The facility still lacks a baggage conveyor system, air conditioning units and electrical system. From the start the project has been under funded.

Another failed project, undoubtedly due to the demise of so many jobs, is the La Fiesta Mall in San Roque, which shut in 2004 but still costs the CNMI $200,000 a year in lease payments. Yesterday the Finance Secretary announced that Bridge Capital LLC is proposing to operate video lottery games at the venue, but that the government is considering whether CNMI regulations would allow the activity.

Poker machines already operate throughout Saipan and in July last year it was reported the CNMI Commerce Department was considering turning the La Fiesta property into an adult entertainment centre, relocating all strip clubs, adult bookshops, massage parlours and gambling halls from present locations in order to leave the rest of the island ‘family friendly’ for tourists. Only Bridge Capital responded to the government’s request for proposals with its plan for video lottery terminals. (E-03.31.09)

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