Torres: Casino ripple effect brings in other investments
Gov. Ralph DLG Torres downplayed a concern about a lack of diversification in the CNMI’s source of revenue and its reliance on the casino industry, saying the casino itself is producing ripple effects.
In an interview on Wednesday, Torres said the casino brings in other investments.
“Now property value has increased. Now tourism has doubled,” the governor pointed out.
He said the casino is an industry that has a ripple effect that brings in other revenues.
If one says the casino is just one industry, “well, it is a huge one and the biggest one,” Torres said.
He pointed out that because of the casino industry on Saipan, the CNMI’s revenue has increased altogether.
Tang earlier disclosed that the gross revenue tax from the Saipan casino has helped the CNMI government pay the Settlement Fund $1 million per week since December 2015, extending the Settlement Fund’s investment horizon.
However, since it is not certain that this source of revenue will continue, and because of the CNMI government’s lack of revenue diversification, relying too much on the casino gross revenue tax “is very risky,” Tang said.
This was among the issues that Tang discussed in her report on the operation of the Settlement Fund from fiscal year 2016 through the third quarter of fiscal year 2017.
Tang made the presentation in the U.S. District Court for the NMI on Wednesday. Torres watched the presentation and was allowed by designated Judge Frances Tydingco-Gatewood to speak about the government’s efforts in meeting the obligations to the Settlement Fund.
Less we forget what happened when the garment industry bailed! I hope paying of debt and making investments for the next rainy days have been considered? Someone needs to look into, and publish, statistics on the “Dark Side” elements that our new cash cow industry brings.
It’s about economic diversification. In other words, if tourism goes south could the local single-engine economy stand on its own?
With our history, “H” No! There would be another serious economic down spin with no plan B.
More smoke and mirrors folks…..its nothing more that a corrupt politician making everyone think he walks on water. diversification of revenue has nothing to do with the fact that property values went up as he stated. And where, by the way, was this happening ? Garapan maybe, but that is a far cry from the entire commonwealth.
Try to feed that line of crap to someone living in Rota or Tinian.
Tourism doubling? impossible. if the volume of tourists doubled, they would be sleeping on the beaches and sidewalks because there are no rooms in the hotels. In fact several of the major hotels here are in the renovation process and have cut marketable product (available rooms) by 40 %, 50% in one case. Nice try. He must think people are really stupid to believe this nonsense. But yes some really are that stupid. They voted for him.