‘E-gaming will do nothing to enhance tourism’

There is no tourist market segment that has shown any interest in small hotels or establishments that have poker and slot machines in their premises, according to the Saipan Chamber of Commerce.

In fact, Korean tourists make up the vast majority of arrivals to Saipan and most visitors within that market are families, said Chamber president Joe C. Guerrero.

“Families are not attracted to gaming in general nor to poker/slot clubs specifically,” said Guerrero in the Chamber’s recent written comments opposing House Bill 23-85.

Authored by Rep. Ralph N. Yumul (Ind-Saipan), House Bill 23-85 proposes to allow businesses who cumulatively possess more than 100 hotel rooms to engage in electronic gaming activities.

The bill proposes to amend the current e-gaming law to allow for hotels with at least 30 rooms to add poker and slot machines in their premises. For Saipan, the legislation will allow this variance only in western Garapan.

In response to Saipan Tribune’s questions yesterday, Yumul said the bill is still in the Gaming Committee that he chairs and that they have not decided on a date to discuss the legislation. He deferred to comment on the Chamber’s position as they are preparing to hold hearings on another matter.

Guerrero said the bill will likely damage tourism by downgrading the tourist experience in Garapan, which is the heart of the CNMI’s tourism industry.

He said the presence of e-gaming lounges will negatively impact the vacation experience of any tourist walking through Saipan’s tourist area, create safety and security issues and potentially attract undesirable persons and activities to the area.

As for the CNMI’s secondary tourist source market of Japan, none of the active market segments traveling internationally are inclined to participate in this activity, Guerrero said.

He said the most active travel segments from Japan are “Office Ladies,” families, company trips, and high school groups and that none of these segments will be selecting Saipan as their destination of choice due to the availability of these lounges, nor will they avail of them while they are on island.

“The presence of e-gaming in Garapan will do nothing to enhance tourism,” Guerrero pointed out.

He said Yumul introduced the bill in response to comments from the source market of Japan that there was little for tourists to do after 8pm.

Guerrero said the CNMI government is spending more than $10 million to upgrade the Garapan area, but the presence of small e-gaming lounges will detract from that effort.

He recalled that there was a time when the same Garapan area was crowded with hostess bars and other adult activities. During those years, he said, families avoided walking through the area after dark. He said those establishments are now gone.

Guerrero said there is an opportunity to push the Garapan area upmarket, but the presence of e-gaming lounges will prevent the improvements that the area desperately needs, as lower end activities are frequently associated with undesirable individuals and criminal activities.

Guerrero said the Chamber supports the Legislature’s efforts to find creative ways to grow government revenues, but this bill will likely have the opposite effect, damaging tourism and negatively impacting the effort to upgrade the Garapan area.

Based on the current e-gaming law, he said, there are nine beachside hotel properties that could offer e-gaming to their guests. None of these properties do offer that and one of them that previously offered this activity is now closed, with no plans to reopen, Guerrero said.

“If in fact e-gaming was attractive to tourists, certainly one of the nine would offer it today,” he pointed out.