Chamber president: I won’t be surprised if another major business leaves CNMI

The Saipan Chamber of Commerce, though shocked by Hyatt Regency Saipan’s devastating news of its impending closure, says it’s not surprised and believes that by how slow the CNMI is recovering, others may follow suit.

In an interview with Chamber president Joe Guerrero yesterday, he shared that just like the rest of the community, the Chamber is in shock and concerned about Hyatt’s recent announcement of permanent closure.

“We feel for the employees that will have make this new transition and we’re concerned about what kind of signal this event will have for other businesses,” he said.

Guerrero said the biggest concern is that other businesses, even other hotels, may follow suit.

“I don’t think anyone saw this happening, for Hyatt particularly, but we’re not surprised. We’re disappointed and shocked, but we’re not surprised by closures such as Hyatt’s. Many businesses could’ve closed during COVID, but they were hopeful that COVID was temporary. Now, I won’t be surprised if another major hotel or business group decides to leave the CNMI. I pray that it doesn’t happen, the Chamber isn’t trying to scare anyone, but I just wouldn’t be surprised if another major business decides to close permanently. What we have right now is not sustainable, but I’m hoping we don’t have more closures,” he said.

Guerrero explained that closures are possible given that the CNMI’s recovery has been slow.

“We hope that those that are considering closing down, like the Hyatt finally did, don’t do it. We hope things will get better sooner rather than later and we hope this is not going to impact other major businesses that have been struggling due to COVID, and now that we’re opening back up and our tourism [industry] is recovering, it’s too slow for many businesses to survive long term,” he said.

Meanwhile, in its official statement, the Chamber urges the CNMI government officials to work collaboratively to support Delegate Gregorio Kilili C. Sablan’s (D-MP) efforts in urging U.S. Department of Transportation Secretary Pete Buttigieg to exempt the CNMI from DOT’s current policy that limits the number of passenger flights from China to the United States. The Chamber believes this is the key to ensuring the full recovery of the China market.

“For nearly two decades, industry stakeholders including hotel operators, Marianas Visitors Authority, and the CNMI government adopted and pursued a tri-market tourism strategy. For years leading up to the COVID-19 pandemic, our tri-market included Korea, Japan, and China and this strategy worked well in developing our destination and in hedging against risks associated with these source markets’ respective economies and currency fluctuations against the U.S. dollar. Unfortunately, today, we only have Korea as our single source market. Bringing back the Japanese market remains challenging, and the China market will not resume to pre-pandemic levels without direct flights from China. As a chamber representing the business community, we urge government officials, industry leaders, and community members to work collaboratively to support Delegate Gregorio Kilili C. Sablan’s efforts,” said the Chamber in a statement.

Further speaking on Hyatt’s exodus from the CNMI, the Chamber expresses its deep concern regarding the closure of Hyatt Regency Saipan at the end of June 2024

“The closure of such a prominent establishment with a long history in the CNMI tourism industry underscores the significant impact that the ongoing and prolonged downturn in tourism has had on our local economy. The Chamber recognizes the importance of the tourism industry as a vital driver of economic growth, job creation, and community development in the CNMI. We stand in solidarity with the management, staff, and stakeholders of Hyatt Regency Saipan during this difficult time. Their unwavering dedication to providing world-class hospitality for the past 44 years has been a cornerstone of our tourism sector, and their absence will be felt for years,” it said.

“Many in our community are with heavy hearts about the planned closure as the Hyatt has touched so many of our lives. At the Hyatt, many memories were made including weddings, anniversaries, and enjoying one of the best Sunday brunches in the Marianas. Hundreds if not thousands of our people have worked for the Hyatt over the past four decades. The Hyatt has helped train many in the culinary arts and hospitality and was the major force behind the culinary program at NMTI. Many Hyatt chefs received advanced on-the-job training and eventually worked for other CNMI hotels and restaurants,” the Chamber added.

As for the future of the Hyatt property, the Chamber says its hope is that the next operator meets or exceeds Hyatt’s service.

“We hope that the next operator of the best beachfront hotel site on Saipan will meet or exceed the Hyatt customer service levels while remaining a consistent supporter of community organizations and non-profits, including the Chamber. We expect the next operator to adopt Hyatt’s philosophy of hiring locals first whenever possible. For over a decade, the Hyatt has consistently maintained an 80% or greater local resident workforce rate,” according to the Chamber statement.