The US already leases two-thirds of the land on Tinian. Photo: Dan Lin
The United States is set to pump billions of dollars to upgrade its military infrastructure on the Commonwealth of Northern Marianas (CMNI)island of Tinian.
Located in the south of capital Saipan, Tinian is expected to become America's next strategic base in the Pacific and a bulwark against Chinese interests.
The US military is expected to spend as much as $5 billion in military and civilian infrastructure development on the island in relation to the Tinian Divert Airfield project.
The project is needed by US in the event the Anderson Air Force Base on Guam is rendered inoperable due to attack or natural calamity.
The US already leases two-thirds of the land on Tinian.
Tinian Chamber of Commerce president Philip Mendiola-Long said Saipan's sister island has a slew of immediate needs to accommodate the military buildup on Tinian.
These include requirements on fully furnished AirBNB-style housing for 3-5 years, new hotels, heavy equipment and van, truck, and car rentals, warehouse development, commercial office space development/portable office rental, restaurants/food service, construction safety supply, night entertainment, and day activities like island tours and events.
There is an urgent need for companies to introduce the Low-Income Housing Tax Credit program on Tinian, Mendiola-Long said.
Businesses on the island welcomed the development as its population of around 2,000 has been looking for any kind of economic driver since the Tinian Dynasty Casino shut down years ago.
CMNI to shun Chinese tourists, to go after 'allied' markets
Meanwhile, the CMNI is pivoting away from its reliance on its Chinese tourism market, opting instead to develop further its tourism market in Japan and South Korea, which are considered allies to the US
In a nod to the increasing geopolitical tension between Washington and Beijing, Governor Arnold I. Palacios recently wrote to the US Indo-Pacific Command commander Admiral John Aquillino, stating this change of policy.
"My administration is very much committed to the US national interests in our region and will do what we can to advance these interests as geopolitical tensions continue to heighten," he wrote to Aquillino
"Part of this commitment includes the CNMI's pivot away from its reliance on the Chinese tourism market, which comprised more than 50 percent of our tourism base (about 200,000 visitors pre-pandemic)," Governor Palacios said.
In place of the Chinese market, Palacios said his administration is working on strengthening and further developing the tourism pipelines from American allies like Japan and South Korea.
But he said the change would take time.
"The loss of the Chinese market has had a considerably adverse economic and financial impact on the Commonwealth. This loss, which represents a sizable portion of our tourism revenue, contributes to vulnerable economic conditions that in the past have been exploited by the Chinese Communist Party to the detriment of the US interest in the region," Palacios said.
Due to the anticipated loss in revenue, Palacios is seeking the Indo-Pacific Command's help in advocating for additional support in the form of funding to stabilize the CNMI community as it commits to turning away from one of its biggest tourism markets.
"Because the CNMI's economic stability and sustainability is directly tied to the strategic posture and military might of the U.S. in the Indo-Pacific region, we are formally seeking your advocacy for additional funding support to stabilize our economy as you testify before the U.S. Congress about the [Department of Defense]'s budget," he said.
"Specifically, we request for your support in seeking direct aid to replace the economic loss that we have experienced as a result of the CNMI's pivot away from China."
The CNMI's tourism sector is dominated by Korea, China, and Japan, with just a sprinkling of other destinations.
The Covid-19 pandemic resulted in a massive drop in visitors from these markets.
It has only been lately that both the Korean and Japanese markets have started trickling back in.