If the CNMI wants to prevent total economic meltdown, its people need to embrace change, open themselves up to new ideas, and ensure that all investors are treated equally, said Pacific Telecom Inc. CEO Ricky Delgado Jr. during yesterday\u2019s Saipan Chamber of Commerce meeting.<\/p>\n
\u201cRealize the gravity of our situation. Stop remembering the good old days and work toward a future we can control. \u2026We can\u2019t afford to waste time with endless debate. We need to act now,\u201d said Delgado.<\/p>\n
He said one very critical issue that needs to be addressed immediately is Article 12 of the CNMI Constitution, which limits land ownership to those of CNMI descent.<\/p>\n
He said that Article 12, which prohibits foreign investors from owning land in the CNMI, has driven many potential investors away from the CNMI. Because of this prohibition, he said that the CNMI practically has no market for real estate.<\/p>\n
For instance, he said that a two-bedroom and one-bathroom house in the CNMI costs $51,000 on average. In Guam, the same package would cost $160,000, while in Hawaii, it would be worth $480,000.<\/p>\n
\u201cWhat is it telling you? It is telling you there\u2019s no market for real estate on Saipan because of this [land ownership issue]. \u2026It\u2019s shooing investors away from the CNMI. If you\u2019re an investor, would you put more capital here or in an area where the value of land goes up? We\u2019re not competing in a vacuum. We are competing with other places,\u201d he said.<\/p>\n
Delgado said the CNMI could address the issue now and have a portion of fee simple proceeds go to an indigenous education program.<\/p>\n
He said the CNMI could set limits on what could be sold.<\/p>\n
\u201cThe inability to own land is keeping investors away from the CNMI and sending them to Guam and beyond. Investors will not put capital into leases that are nearing the end of their term,\u201d he said.<\/p>\n
Article 12 only allows foreigners to lease land in the islands for as long as 40 years for public lands and 55 years for private lands.<\/p>\n
Casino industry<\/p>\n
If the CNMI is looking for new sources of revenues, why not venture into casinos, the same way that Macau, South Korea, and even Singapore have done?<\/p>\n
\u201cCasinos will improve our tourism product: after all, does Macau or Singapore have the views of Saipan? This is our unique selling proposition. Take advantage of it,\u201d he said.<\/p>\n
He cited that Macau has overtaken Las Vegas when one of the largest U.S. casino operators invested some $5 billion in the former Portuguese colony recently.<\/p>\n
Delgado agrees that gambling is a controversial issue in the CNMI but he said that it is the people who must decide \u201cwhether the economic benefits of these things outweigh the potential negative aspects.\u201d<\/p>\n
\u201cIt\u2019s a choice. Stay the way we are\u2014sinking\u2014or find new things that attract tourists. And casino is one of that,\u201d he said.<\/p>\n
In terms of tourism, he said there should be a concerted effort to prioritize it for funding, so that the beauty of the islands will be maintained.<\/p>\n
\u201cHow can we market our beaches, when our lagoon is polluted? CIP funds should be prioritized,\u201d he said.<\/p>\n
Demand boldness from politicians<\/p>\n
In his remarks, Delgado said that much of the changes depend on people voting wisely on issues and electing the right people who can handle the job.<\/p>\n
\u201cThere\u2019s hope for the CNMI but only if the people who elect the officials demand boldness and accountability,\u201d he said.<\/p>\n
He said the community needs to be educated on key issues and be made aware of repercussions if they choose \u201cto live in isolation and refuse to change.\u201d<\/p>\n
If people want the status quo and refuse to make changes, Delgado predicted several things to take place, including no foreign investments and no new jobs, no healthcare, no education or opportunities for children, potential destruction of indigenous cultures since young people will leave for a better life, distinction of going from economic miracle to economic disaster in a decade, and the end of \u201cgood life as we know it.\u201d<\/p>\n
If CNMI people do opt for change, \u201cthen all of us must demand from our elected officials to put the laws and policies in place that will allow change to take place.\u201d<\/p>\n
These changes would mean amendments to certain rules, regulations and laws such as the Article 12 or adoption of new ideas for new investments.<\/p>\n
\u201cTime is running out. Failure to act immediately will result in more crime, rundown appearance, [and] negative tourism,\u201d he said.<\/p>\n
Yesterday\u2019s Chamber monthly meeting was held at the SandCastle room of the Hyatt Regency Saipan.<\/p>\n","protected":false},"excerpt":{"rendered":"
If the CNMI wants to prevent total economic meltdown, its people need to embrace change, open themselves up to new ideas, and ensure that all investors are treated equally, said Pacific Telecom Inc. CEO Ricky Delgado Jr. during yesterday\u2019s Saipan Chamber of Commerce meeting.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-106764","post","type-post","status-publish","format-standard","hentry","category-local-news"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/106764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=106764"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/106764\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=106764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=106764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=106764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}