Some unasked and unanswered questions

This morning let’s do like the “do-do bird” and fly backwards for a few minutes. The “do-do bird” is a bird that always flies backward to see where it has come from rather than look forward to see where it is flying. This bird reminds me of the quote that states that those of us who do not learn from the lessons of the past are doomed to repeat them. Unfortunately many of our “thinkers” and “leaders” are just like the “do-do bird.” They keep looking backward to times that were, instead of the present and future.

Let’s start by discussing several unasked and unanswered questions about some of the things we could have done and why we didn’t in the past. By understanding them, the answers might prevent us from repeating the same mistakes.

We keep searching for investors to come here and invest in our islands. But I want us to examine what we do to them after they do invest here. What kind of relationships do we build with them? No, I am not speaking about that we know them by name and occasionally have a short drink with one or two. I am referring to serious follow up and frequent meetings in which frank matters are discussed before they fester and cause disagreements.

Inviting investors is one thing, but understanding each other beyond surface relationships is another matter if we are to continue on a long and harmonious relationship. We must examine what we are doing or we will also lose the new relationships we have with our current tourists from Korea, Russia, and China.

Do we remember the large Japanese tourist market and large Japanese investment we were enjoying several years back? In 1984, when I first started in the tourist business on Saipan, there were only 150,000 guests. Later in 1997, that number mushroomed to abut 700,000 tourists. Almost no Koreans, no Chinese, and no Russians—only Japanese!

Why have the Japanese tourists today become almost an endangered group? Where are the reports that show why they deserted our islands and what caused them to desert us? What conclusions can we point to and say these are the reasons? I know for a fact that they have not stopped traveling to other destinations. Has anyone ever prodded for the real reasons?

I recall when the Nikko Hotel was being built. There was a big land dispute. In fact, the Japanese investors bluntly told the government at that time that if the land was gong to be taken back after they had leased it and already started to build, they would never fly to Saipan. Quickly they were appeased and the hotel was finally built. But from that time on relations became very strained between the government and the Japanese, which continued through the development of the La Fiesta and the Lao Lao Golf Course. And as we all know, Japan Airlines and its investments finally did say goodbye to the CNMI.

Did anyone ever try to reconcile the insult? Did anyone ever try to study how relations could have been improved? Did anyone ever consider that there could be dire consequences if the insults were not mended? In fact, the Nikko group, which is actually owned by Japan Airlines, even considered leveling La Fiesta because they were so disappointed with our attitude.

I truly believe that we never tried to understand the Japanese market but took it for granted. Having lived in Japan for 16 years and in doing business with the Japanese, insults are serious matters and need to be carefully corrected. Japanese do most of their business relations with a handshake depending on the trust of the other side, unlike us who always insist in having lawyers do our negotiating and contracts. Personal trust is usually cast aside. Frankly speaking, we insulted them away by our indifference and bad attitude.

Have we forgotten that the Diamond Hotel, now the World Resort, the Grand Hotel, and the Dai-Ichi, now the Fiesta, Marianas Resort, Aqua Resort and the Lao Lao Golf Course—all were Japanese owned? Why did they all sell off their investments? Instead of trying to understand and help Japan Airlines, we alienated the investor that was flying the tourists to Saipan to fill the hotels. Didn’t we see or understand the pattern?

Did anyone try to find out why this was happening? Things do not happen in isolation. For every action there is a cause and a

reaction. The Japanese are a tightly knit group. When one is insulted or hurt, the others feel it and also react. Japan has often been labeled “Japan Incorporated” because of their interlocking relationships.

Currently we are busy courting the Korean, Chinese, and Russian tourist markets. Is anyone in the government monitoring how we are doing in our relationship with them? Is there anyone assigned to the job of working with any foreign investors? Do we ever meet together and discuss problems or how to improve our relationships? Are the tourists pleased with their visits to our country? How can we improve our services? And many other points to really cement a relationship?

We have had the Tinian Dynasty Hotel and Casino here for over 10 years. Is anyone in the government assigned to work with them and make sure that they are happy? Or do we just have commissioners overlooking their operations as a watchdog? Is it any wonder that the casino and our relationship with them is at a low point? Notice that after promising them a decent airport with proper landing and safe facilities, we still have not built one. Is it any wonder that relations are strained? Weren’t promises and assurances made?

How do other present and future investors view our attitude? Why haven’t we had any serious investors here in recent years? In fact, didn’t a group of potential investors recently ask the question: Why haven’t the present investors succeeded better? No, I don’t think it is because of the labor unsettled problem or the non-ownership of land. We have to examine how we are treating the investors we so desire.

We had better begin asking all the unasked questions and answer them. Until we realize that business is competitive and requires a close working relationship between the investor and government, especially after the agreement is signed, investors will never flock here regardless of incentives. And if they do come, will they remain and be happy? Remember they are customers and can shop many other places to put their money. We do not have a monopoly on anything of interest to them.

A truly successful business relationship will only succeed when the parties understand and respect each other. Sustainable business is founded on mutual trust. It consists of people working with people. And this is especially difficult to do when the two parties have different cultural differences and different languages. The product or service is secondary. Unfortunately, we do not practice this. Too often, we mistrust each other. Too often we begrudge the returns they make on their investments, forgetting the risks they take. Why do we act like this?

I am not pointing fingers at anyone for what happened to the Japanese tourist market. But I am deeply concerned that the same may happen to the Korean, Chinese and Russian markets. We must not lose them. If we burn off the Korean, Chinese and Russians, who is left to come here? Please let’s work closer with our investors while relations are good.

We must start asking the unasked questions and answer these unanswered questions, or we are doomed to repeat the mistakes of the past. Oh, how I long for the lost Japanese market. Look out! The “do-do bird” is right overhead.

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