HANMI pushes for Article 12 amendment and QC revision

Citing its importance to the hotel and tourism industry, a tourism strategic plan ad-hoc committee echoed yesterday what other businesses have been saying: the need to amend the CNMI Constitution’s Article 11 and 12 to extend land lease terms in the islands.

“This is vitally important to promoting major improvements and further development of the hotel industry. It’s just difficult for investors to come here and get only 40 years or 55 years lease term. We are fully supportive of the bill extending the years. This is a No. 1 issue for hotels,” said Hyatt Regency Saipan general manager Michael von Siebenthal during yesterday’s general membership meeting of the Marianas Visitors Authority.

He spoke as chairman of the hotel ad-hoc committee under the government’s 5-year strategic tourism plan.

Siebenthal said the Hotel Association of Northern Marianas is behind a bill that seeks to extend the lease term to 75 years.

QC revision, tour guide certification

Another issue that the hotel group wants prioritized is the revision of the qualifying certificate program or the tax incentive program “to make it work for tourism infrastructure improvements and development, like Guam.”

“Let’s make it easier for investors to apply and get assistance. We all know that the current QC program doesn’t work,” he said, citing a study conducted by the Strategic Economic Development Council last year.

The QC program, which grants tax abatement and incentives up to 25 years to new and existing investments, is being implemented by the Commonwealth Development Authority.

A bill to amend this program is pending at the House of Representatives.

The hotel ad-doc committee also asked the Legislature to pass a bill for tour guide certification “to protect consumers and promote quality of our land tours.”

“We owe it to tourists to get qualified tour guides,” Siebenthal said.

In its presentation, the ad-doc committee also cited the need to pass legislation that would allow for the removal of seaweed in swim zones.

Another issue to address is the need to pass a regulation governing beach concessions to ensure the right level of competition, quality and better “ambiance” in beaches.

In the last couple of years, the hotel industry has invested a total of $60 million in renovations, expansion, and facility upgrade such as the development of more spa services.

Von Siebenthal said 2007 will be “the year of spa” since several hotels and businesses in the CNMI are either expanding or launching spa facilities.

He cited the new, existing, or recently improved spa centers at the Hyatt Regency Saipan, Coral Ocean Point, Marianas Resort, Saipan World Resort, Fiesta Resort & Spa, Mandara Spa at Hafa Adai, Hotel Nikko, PIC, and Pier Spa in Garapan.

Next year, new spa facilities will be inaugurated at the Hyatt at its former Chinese Restaurant, and a multi-million new Pacific Islands Club spa, which will be located across the hotel in San Antonio.

Aqua Resort also plans to develop its spa facility on a property south of the hotel.

Future construction is further expected in the hotel industry in anticipation of increased arrivals.

The ad-doc committee said 500 more hotel rooms are needed to accommodate 1 million tourists a year in the CNMI.

The government aims to bring in 1 million tourists annually by 2010.