LaoLao project swings to action

The LaoLao Bay Golf Resort is seeing a flurry of construction and renovation activity now and much more is to come as it moves forward with a major expansion to serve a growing demographic of wealthy golf tourists.

“We are really building, actually building and we’re seeing a lot of progress,” said Yun Kim, president of the resort, in an interview Saturday. “It’s really happening.”

A yellow crane now towers over the resort and the air away from its sprawling golf course is buzzing with the sound of drills, welding and hammering.

The resort broke ground earlier this year on a $68.8 million golf hotel—or “Golftel,” a complex with condominium-style apartments for golf tourists—and has since completed laying its foundation while the project’s managers push ahead with expanding the nearby clubhouse and restaurant. In addition, the resort has plans for a teahouse where golfer can get some late afternoon refreshments when coming off the course and villas to cater to the resort’s high-end clientele, according to construction officials.

“This is a new market for this island, this high-end golf tourism market,” Kim said. “We have a real commitment to the CNMI and we have invested a lot of money here.”

LaoLao Bay’s expansion will give a major boost to its parent company, Asiana Airlines, which operates direct service between Korea—a key source of the resort’s patrons—and Saipan. Marketing Saipan as a golf destination, Kim said, ensures Asiana’s route will have a future.

“Because of this investment, we can operate our flights, our route, sustainably,” Kim said.

This week, the Commonwealth Development Authority will decide whether to grant the resort $27.7 million worth of tax relief and abatement measures in order to aid its expansion. The pending decision comes as LaoLao Bay is poised to sell its one-thousandth membership—each one carrying a price tag of thousands of dollars—and as Asiana is reportedly preparing to increase air services to the CNMI.

The project, still on schedule and within its budget, faces some potential hurdles, Kim noted, such as increased labor costs and concerns over how the pending federal takeover of immigration rules will impact tourism. Russian and Chinese tourists are significant demographics for the resort, Kim noted, and strict federal rules for them when traveling to the CNMI could prove problematic.

“We already have a lot of Chinese and Russian tourists using our flights and our facilities,” Kim said. “We should protect that demand for the resort and for the island.”

Nevertheless, the CNMI stands to see a major economic boost once the resort’s construction project is complete and already some new stores and entertainment spots appear ready to open near it to capitalize on the influx of visitors.

According to a report issued by the resort, the CNMI stands to see an estimated $387 million worth of direct and indirect economic benefits from the resort’s business.

“The CNMI will get a world-class golf course and hotel when this is finished,” Kim said. “It will be outstanding.”