Rota’s ability to market itself as casino haven threatened by federalization
Excluding Chinese tourists from the Guam-CNMI visa waiver program and the June 1 transition to federal immigration is threatening Rota’s ability to attract casino investors even as it already cut fees and allowed for a phased in casino development to meet the $25 million required investment threshold to cope with the tough economic times.
“The result of the proposed interim rules will severely hamper Rota’s ability to maximize its ability to market its casino industry, as well as future economic and business growth,” Rota Casino Gaming Commission chair Diego M. Songao told the U.S. Department of Homeland Security.
Songao said a potential casino investor “is already significantly challenged with Rota’s geographical location which makes it much more difficult to transport goods and services, lack of infrastructure support, airport and seaport facilities, costs of travel to Rota and costs of utility.”
“The exclusion of China and Russia will be another severe blow to a prospective casino investor who would need to transport its customers from Guam and Asian countries,” he added.
The Rota Casino Gaming Commission, however, has yet to name the potential casino investors on Rota.
March 17 deadline
The Rota Casino Gaming Commission is one of the 40 entities to comment so far on DHS’ interim final rule establishing U.S. ports of entry in the CNMI and the establishment of a Guam-CNMI visa waiver program.
Today, March 17, is the last day for submitting comments on the federalization regulations.
Songao asked DHS to include Chinese and Russian tourists from those exempted from the U.S. visa requirement when entering the CNMI or Guam, saying that these markets’ contributions cannot be overstated given the current economic crisis in the Commonwealth.
“Several prospective casino investors have informed us that the exclusion of China and Russia makes the casino investment even more difficult,” he said.
Unlike Tinian which has one operating casino, the Tinian Dynasty Hotel and Casino, and at least three other casino investors, Rota has yet to see a groundbreaking for its proposed casino industry two years after the Rota Casino Act of 2007 became law.
Songao said Rota’s declining economic condition is drastic and alarming, citing increased fuel prices, exorbitant cost of utilities, and drop in tourism arrivals.
The chairman of the Rota Casino Gaming Commission also said the final interim report is unreliable and a180-day delay is needed to allow time for proper research on Rota.
He said the interim report concedes that it is unreliable for the following reasons: (1) Uncertainty in the multipliers used to calculate lost economic output, income and employment as a result of lost tourist spending; and (2) uncertainty in the assumption that the number of visitors or the amounts they spend in the CNMI will remain constant over the five-year analysis period.
“Even more disturbing, there has been absolutely no research done to show the severe economic impact that it will cause to the islands of Rota, its people and potential casino investment,” Songao added.
He said China and Russia could still be included in the Guam-CNMI visa waiver program while ensuring effective border control and national and homeland security.
“The Department of Homeland Security could implement added security measures needed when the U.S. has a substantial military investment here that would warrant such blanket approach. In conclusion, we strongly recommend the delay of the start of the transition period until the required additional security measures of Section III (A) (2) are in place and the DHS has determined that visitors from China and Russia can participate in the visa waiver program,” said Songao.
The Tinian casino industry also earlier warned of the potential harm federalization could have on the casino investments on island, citing the exclusion of Chinese tourists from the federal visa waiver program and limited access to foreign labor pool. Tinian relies on Chinese tourists for its casino industry.
By June 1, CNMI immigration will be under federal control unless the start of the transition period is delayed, as called for by Gov. Benigno R. Fitial, Delegate Gregorio “Kilili” C. Sablan, the CNMI Legislature, the Saipan Chamber of Commerce, and many other individuals and groups.
Also by June 1, Chinese and Russian tourists will be required to secure a U.S. visa for entry into the CNMI and Guam.
