{"id":412584,"date":"2024-08-02T14:00:00","date_gmt":"2024-08-02T14:00:00","guid":{"rendered":"https:\/\/www.saipantribune.com\/?p=412584"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-29T14:00:00","slug":"MGI-We-ve-made-significant-efforts-to-collaborate-with-existing-operators","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/MGI-We-ve-made-significant-efforts-to-collaborate-with-existing-operators\/","title":{"rendered":"MGI: We\u2019ve made significant efforts to collaborate with existing operators"},"content":{"rendered":"

Mariana Global Inc. says it has made significant efforts to collaborate with existing operators on the use of Ma\u00f1agaha, but they have allegedly declined all of MGI\u2019s proposals.<\/p>\n

Local marine operators who have long been using Ma\u00f1agaha for commercial purposes have banded together in opposition of Department of Public Land\u2019s recently proposed amendments to the existing rules and regulations governing the use of Ma\u00f1agaha.<\/p>\n

Operators believe that the proposed amendments only benefit master concessionaire, MGI, and could put them out of business.<\/p>\n

In response to this issue, MGI claims that over the past year, it has worked diligently to collaborate with existing operators.<\/p>\n

\u201cOur proposal focused on partnership and mutual benefit. We offered financial support to replace outdated and unsafe equipment for marine sports and rental operators, in exchange for subcontracting the provision of services to tourists visiting Ma\u00f1agaha through us, ensuring fair profit margins. Additionally, we proposed a commission of 30-40% for local small travel agencies in return for their partnership in promoting and offering our services. We made significant efforts to collaborate with the existing operators, but they have declined all of our proposals for unknown reasons,\u201d said MGI<\/p>\n

MGI adds that it has made significant efforts over the past year to garner revenue but despite a monthly expenditure of $300,000, its revenue remains around $50,000<\/p>\n

\u201cWe estimate [this] to be about 20% of the total revenue generated by Ma\u00f1agaha Island. The remaining 80% is retained by existing operators. As a result, we have been absorbing a monthly loss of $250,000,\u201d said MGI.<\/p>\n

Because of this, MGI claims the current business model of Ma\u00f1agaha poses significant risks.<\/p>\n

First, MGI says intense price competition among existing operators has led to service prices at Ma\u00f1agaha being significantly lower than those in competing regions like Southeast Asia.<\/p>\n

\u201cThis has resulted in decreased revenue and lower service quality, leading to a critically serious situation. By maintaining appropriate pricing and controlling the situation, we, as the master concessionaire of Ma\u00f1agaha, will be able to ensure that these operators receive fair profits through our management,\u201d said MGI.<\/p>\n

Second, MGI states due to the intense price competition among existing operators, there has been minimal investment in new equipment.<\/p>\n

\u201cThe boats are nearly obsolete, and all the equipment is either inadequate or unsafe. These issues not only pose a serious risk to tourist safety but also have a damaging effect on the image of Ma\u00f1agaha and, by extension, Saipan\u2019s tourism industry. To address these problems, we have proposed to support these operators by providing funds to purchase new equipment or offering our own equipment for rent,\u201d said the letter.<\/p>\n

Next, as a private company, MGI oversees all aspects of electricity, water, waste management, marine safety, and environmental issues at Ma\u00f1agaha, not a public institution. Due to this, existing operators who receive these services for free without contributing create ambiguity regarding liability in the event of safety incidents.<\/p>\n

\u201cThis not only raises concerns about responsibility but also affects the image of Ma\u00f1agaha Island among tourists. By formalizing a contract with us, these operators can collaboratively access these services, thereby clarifying liability and protecting the island\u2019s reputation,\u201d said MGI.<\/p>\n

Ultimately, MGI claims that it is not striving for a monopoly on profits, rather to provide high-quality equipment and reliable facilities to ensure customer safety and attract higher-spending clients.<\/p>\n

\u201cEven controlling the relentless price competition among existing businesses would enable them all to achieve higher profits and offer more stable services. By providing high-quality equipment and reliable facilities, we can ensure customer safety and attract higher-spending clients. Mariana Global, as the master concessionaire, will take the lead in this endeavor. Our revenue distribution will be as follows: approximately 25% will go to the CNMI government through DPL, 35% will be allocated to local businesses, including travel agencies, and 20% will be invested in infrastructure and tourism products,\u201d said MGI.<\/p>\n

Violations<\/p>\n

Mariana Global has also addressed allegations of federal violations and says they are profoundly concerned and should \u201cdamaging rumors\u201d persist, they will hold those responsible accountable.<\/p>\n

\u201cMarianas Global is developing a robust and future-oriented business, supported by a group of investors with a solid philosophy and skilled operators. We are profoundly concerned about the spread of unfounded and malicious rumors. Should these damaging rumors persist, we will hold those responsible accountable,\u201d said MGI.<\/p>\n

MGI states that it secures approval from the relevant authorities for every action, including tasks as minor as removing a single weed or coconut.<\/p>\n

\u201cWe are fully aware that Ma\u00f1agaha Island is designated as an Marine Conservation Area, and we ensure that all activities with any potential impact are coordinated with the relevant government agencies. We strictly comply with U.S. federal laws and the relevant regulations of the Northern Mariana Islands. To minimize the risk of potential errors, we consistently consult with legal and accounting experts,\u201d said MGI.<\/p>\n

MGI says it also holds its employees in the highest regard and are committed to their well-being.<\/p>\n

\u201cWe are dedicated to providing optimal support and addressing any malicious rumors regarding salary delays with strong countermeasures,\u201d MGI said.<\/p>\n

Lastly, MGI says it is fully insured for all marine safety requirements and maintains a constant deployment of safety personnel at all times throughout Ma\u00f1agaha.<\/p>\n

\u201cWe oppose the exploitation of Ma\u00f1agaha Island for the short-term gains. To ensure that our jewel, Ma\u00f1agaha, continues to be a valuable asset for the people of the Northern Mariana Islands, it is essential that the island is protected and maintained with the utmost care, rather than being merely exploited. Mariana Global Inc. is steadfast in its commitment to this principle,\u201d said MGI.<\/p>\n

MGI and Department of Public Lands executed the Master Concessionaire Contract for Managaha on July 1, 2023. Mariana Global Inc. has since then prepared for the Ma\u00f1agaha concession.<\/p>\n

<\/p>\n

A file photo of Ma\u00f1agaha Island. Chinese tourists frequented the tourism hotspot when they came in record numbers before the COVID-19 pandemic.<\/p>\n

-MARK RABAGO
<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Mariana Global Inc. says it has made significant efforts to collaborate with existing operators on…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-412584","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\/412584","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=412584"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/412584\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=412584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=412584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=412584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}