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Villanueva optimistic of economic recovery
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Posted on Dec 24 1998
Newly-appointed Commerce Secretary Frankie Villanueva yesterday said he is optimistic that the Northern Marianas will be able to hurdle the effects of Asia’s financial crisis because the island offers many economic advantages different from the rest of the countries in the region.
However, he said the recovery of the island depends primarily on the improvement of the economic situation in Asia, specifically, Japan. He noted that the strengthening of the yen against the U.S. dollar is a positive sign since it will allow more Japanese tourists to travel to the CNMI.
“We have enjoyed a period of 10 to 15 years of uninterrupted economic growth. However, we must understand that economic slowdown is part of an ordinary economic cycle in any country. What we need most at this moment is the confidence in knowing that the economy will eventually turn around,” said Villanueva.
Among the CNMI’s advantages are: low inflation, stable banking system, currency and unrestricted capital flow, political stability under the U.S. flag, sovereignty over wages and immigration, relatively low business taxes and relief from certain U.S. import tariffs via Headnote 3A exemption.
Villanueva believes that tourism will remain the NMI’s economic strength and the island only needs creative marketing plans to increase the visitor arrivals in the CNMI.
In enticing more tourists to come here, the department will work closely with the Marianas Visitors Authority, airlines, hotel association and Saipan Chamber of Commerce to help save the sagging tourism economy.
MVA has already prepared various activities to be carried out in its Visit the Marianas ’99 Campaign in a move to provide more excitement to the island as a destination. Japan, the island’s main source of tourist, has been experiencing its worst recession in decades.
The department, Villanueva said, will encourage those with long-term plans in the CNMI to invest here because of the need to ensure that capital generated by these businesses stay on the island.
“It is difficult to sustain economic growth in he Commonwealth if income and profit earned are immediately remitted to foreign countries and siphoned out of our local economy,” he said.
