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Sablan: Firms’ pullout should be a concern
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Posted on Jan 26 2005
With several companies in the CNMI shutting down operations or selling their businesses, the Saipan Chamber of Commerce urged the government to look into why some investors are pulling out from the islands, as the Commonwealth sails through tough economic times.
“We need to be concerned why they [some investors] are leaving,” said Chamber president Alex Sablan.
Those investors include Japanese-owned companies, who were behind investments such as insurance companies, Laolao Bay Golf Resort, Hafa Adai hotel, and Saipan Grand Hotel, among others.
Regarding the cessation of local operations by Pacific Islands Aviation, however, Sablan said the matter appears to be a result of fierce competition.
“It’s pretty tough doing business because our economy has been in recession,” Sablan said, adding that the cost of doing business on the islands has been continuously increasing.
Sablan said, though, that the Chamber is upbeat with the potential for economic recovery through other avenues, noting the recent approval of the CNMI’s approved destination status application with the Chinese government.
With ADS, the CNMI government can now openly market the Northern Marianas as a tourist destination in China, as the number of travelers from the most populous country in the world continues to rise.
“There are people [investors] interested in the region,” Sablan said. He also expressed support for the conclusion of the Verizon sale for the improvement of the CNMI’s telecommunications infrastructure.
