Support pours in for World Resort QC application

World Resort Saipan’s $25.5-million renovation proposal would provide a total of $59.47 million in direct tax income to the CNMI government over a 25-year period, the hotel said yesterday.

According to World Resort, the investment offers various direct and indirect benefits to the local economy.

For one, the hotel’s expansion will provide employment to about 90 people. World Resort estimated that this would translate into tax income amounting to $3.22 million from the payroll, as well as $10.7 million from wages and benefits, over 25 years.

The renovation will also generate about $18.55 million in revenue from local goods and services and about $27 million from option tour services, the hotel said.

Meanwhile, indirect benefits include having a world-class resort hotel, a unique water park attraction, and a state-of-the-art entertainment facility on Saipan. The project will also promote local talent and culture and education for the island’s school children, and increase the CNMI’s international exposure through the network of the hotel’s owner—World Corporation.

As an incentive for its $25.5 million investment, World Resort is asking the government for 100-percent business gross revenue tax abatement, 100-percent corporate income tax rebate, and 100-percent tax abatement for hotel occupancy that exceeds 2004 level.

The hotel wants to receive such incentives for 25 years.

Support poured in for World Resort’s application for a qualifying certificate at the Multi-Purpose Center in Susupe yesterday.

Business and tourism industry leaders showed up at the public hearing to urge the Commonwealth Development Authority to approve World Resort’s request for tax abatement.

Those present at the meeting included Saipan Chamber of Commerce president Alex Sablan, Hotel Association of the Northern Mariana Islands president Lynn Knight, Marianas Visitors Authority chair David Sablan, and Strategic Economic Development Council co-chair and DFS Galleria Saipan president Marian Aldan Pierce, among several others.

The officials agreed that World Resort’s $25.5-million renovation plan was a much needed investment in the Northern Marianas.

They noted that a lot of the CNMI’s repeat visitors were looking for new reasons to come to the CNMI. However, there has not been a major investment in the islands’ tourism industry during the past 10 years.

“We are competing against other destinations. We must have something that would attract tourists. We lack that today,” said Sablan.

Aldan Pierce read a resolution adopted by the SEDC in support of World Resort’s QC application. “SEDC seeks to support and encourage this type of development not only because it enhances the economic base of the Commonwealth but also because it counteracts the perception of economic downturn,” a portion of the resolution read.

World Corporation, which owns and operates World Resort, proposes to invest $25.5 million to renovate and expand the hotel. The planned improvements include the construction of a water park, additional rooms, a 25-meter national standard race pool, a day care center for children, and outdoor stage, and other facilities.

The hotel originally planned a $14-million renovation. For this, the company was granted total tax rebates of $4 million over a 10-year period.

But the hotel subsequently decided to make additional investment and expressed its intent to CDA to amend its qualifying certificate.

Since no law allows CDA to amend an already issued QC, World Resort has opted to cancel the original and redo the entire application process, even though it could take at least four months to process.

World Resort explained that maintaining a consolidated qualifying certificate would be more convenient than having to comply with the requirements of two separate QCs.