slumping tourism industry

Casino gives hope to GNMI's slumping tourism industry

By Aldwin R. Fajardo

Displaying initial

signs of significant growth during its May 1 soft opening, Northern Marianas officials described the casi no gaming industry on Tinian as the saviour of the ailing local economy.

With more than $2OO million in total investments, CNMI Governor Pedro P.

Tenorio said the Tinian Dynasty Hotel and Casino is the realisation of a long-time dream to give travellers another reason to visit the Northern Mariana Islands.

The casino industry, according to Tenorio, will serve as a substantial source of new jobs, employment and training opportunities for the local residents in both entry-level and management capacities.

This early, statisticians have already observed a steady increase in the number of people with the migration of non-resi dent and local workers to Tinian.

This increase in population is expected to have a multiplier effect in the island’s economy since there would be more peo ple who would need to go to several busi ness establishments for food and other necessities.

Tinian Chamber of Commerce presi dent Phillip Mendiola Long disclosed that there has been a steady five percent increase in total island population, attribut ing the development to the new casino gaming industry on the island.

Businessmen said Tinian is facing a major economic boom that may save the Commonwealth’s languishing economy with the slump in Saipan’s tourism indus try and the pending demise of the garment sector which has been the target of federal take-over advocates.

Long said the increase in Tinian’s pop ulation would mean an additional weekly expense of SUS7,OOO to SUS 10,000 circu lating within the local economy.

Economist William H. Stewart said the casino industry would need more workers

who will need hous ing. Houses, he said, require power and water, fire and police service. Stewart added that medical facilities will have to be expanded with more doctors and nurses.

“Both an economic and human multiplier effect will be activat ed.”

He said nothing has occurred in the Northern Marianas that has the potential of making such a pro found impact on a sin gle island’s society as does the successful marketing and opera tion of Dynasty’s dis-

tinct investment. Stewart estimates that with the Dynasty’s 400 rooms operating at an average annual occupancy of 80 percent at an average guest room ratio of 1.5 at approximately single room rate of SUSIIO per night and SUSI6S for a double, the total gross income from room sales would be SUS 16.06 million.

Food sales was estimated to reach at about SUS 4.6 million while beverage sales SUSI. 6 million. Add to this space rental and income from recreation facilities other

than gambling.

Employing a total of more than 900

employees, Stewart conservatively esti

mated Dynasty giving out some SUS 7 mil lion in annual payroll.

He said more than five million meals would be served annually, predicting that there would be an average of 480 guests on the island on any given day at the casi no-hotel at the above average annual occu pancy. “The hotel room tax generated at 80 percent occupancy would be SUS 1.6 mil lion with a business gross revenue tax of about SUSI million on room, food and

beverage sales alone. Of course income from space rental, recreation facilities and gambling would increase this tax obliga tion,” he said.

Stewart said if the hotel is successful in its marketing efforts, there will be business opportunities for pork, poultry, beef, fruit and vegetable production; fish including shark fins for soup; souvenir shops; char ter fishing and diving; car rental; small restaurants; retail stores and everything else from taxis to pawnshops. He said the facility would provide a huge market for a consistent and assured supply of farm and marine products of all kinds.

Dynasty chairman Michael Kwan said the casino industry’s success will generate of more job opportunities for CNMI resi dents, adding that the huge increase in the number of tourists will have a direct impact on the island’s economic growth.

“Dynasty is not just a magnificent proper ty, it also has an excellent marketing team that is actively and aggressively promoting this resort and the island of Tinian itself,”

Kwan said. ■