‘We're Feeling The Pinch': CNMI Governor Blames Economic Slump On Geopolitical Tensions

Scoop

07-05-2025

Article – RNZ
The Northern Marianas Islands needs to diversify its economic base in order to better cope with global tensions, Arnold Palacios says. Mark Rabago, RNZ Pacific Commonwealth of the Northern Marianas correspondent
The geopolitical situation in Asia and the Pacific region is one of the reasons for the ongoing disruptions with the Northern Mariana Islands' (CNMI) travel authorisation program, the territory's governor says.
The delays in the CNMI Electronic Vitality and Security Travel Authorisation Program (EVS-TAP) approval for tourists from China has resulted in the abrupt suspension of Hong Kong Airlines flights to Saipan.
It is also a contributing factor to low visitor arrivals in an island economy that primarily relies on its tourism industry.
'I immediately reached out to Homeland Security, [Customs and Border Patrol], and even the White House when I was made aware of this,' Arnold Palacios said.
'So obviously with the situation, with [the] geopolitical situation in our Asia Pacific area, we are feeling the pinch.'
The immediate cost of the tensions between Washington and Beijing is tourist arrivals from its one promising tourist market of mainland China.
'Unfortunately, Hong Kong Airlines could not afford to wait for a solution. They had to make a decision for their business, and that meant suspending service to the CNMI.'
The governor's remarks came shortly after the Marianas Visitors Authority (MVA) confirmed that HK Airlines would suspend service between Hong Kong and Saipan from 8 May through 15 June due to ongoing disruptions with the EVS-TAP.
In a statement, MVA managing director Jamika Taijeron expressed concern that the temporary suspension could become permanent if EVS-TAP services are not restored quickly.
'The reality is that if EVS-TAP processing is not restored soon, HK Airlines may be forced to permanently cancel its route to Saipan,' Taijeron said.
'With global aircraft availability at an all-time low, regaining lost service-or attracting new carriers-will become increasingly difficult.'
He also pointed to the recent conviction of a Chinese national in a high-profile drug and manslaughter case – an overstayer who exploited CNMI's visa system – as one of the reasons for further scrutiny of the EVS-TAP program.
'I mean, that is just the nature of the beast. It does not help our situation when you just had the federal courts sentence an overstayer who was here on a tourist visa and was here since 2016, and now is in jail for 25 years, and the continuing saga of people going from here to Guam, mostly overstayers, whether they were CWs (work visa) or came in on tourist visas.
'So that also becomes an issue when CBP and our immigration, federal immigration, takes a look at the policies that they have to move forward.'
Palacios conceded that the CNMI will ultimately just have to wait for updates on the EVS-TAP disruption.
'I do not want to say that that is an issue that is going to be resolved immediately.
'I made those inquiries first week of April, through different channels, I have tried and even to the White House leadership, but they said they are going to get back to us.'
Meanwhile, Taijeron noted that MVA has been working closely with Palacios and US Delegate Kimberlyn King-Hinds to engage the federal agencies responsible for the Electronic Travel Authorisation system under EVS-TAP.
She also thanked House Speaker Edmund Villagomez and Reppresentative Julia Ogo for 'advocating transparency and urgency in addressing this matter.'
HK Airlines' cancellation is not the first hit to the CNMI's beleaguered visitor industry.
Other carriers such as Jeju Air and T'way from Korea have also reduced or suspended flights, citing safety reviews and weak passenger volumes.
Its abrupt decision to withdraw service adds to a cascade of economic disruptions, including a shrinking tourism industry, multiple business closures, and continued job losses across the Commonwealth.
'The other issue with Kensington [Hotel] closing down for a month is because of the airlift issue,' Palacios said.
'Both, I think, T-Way and Jeju have cut their daily flights, one daily flight by Jeju. And that's because of the safety issues that they have to deal with..'
'Tourism can't be our only engine'
The governor also emphasised that the crisis highlights a larger truth – the CNMI must diversify its economy.
'Tourism can't be our only engine,' he said, adding that the CNMI needs to look at other industries like education, technology, and small business development.
'Guam and Hawaii have federal investments through the military – we need our own pathway to stability.'
Palacios said that, despite the challenges, there were bright spots.
Programs such as the Small Business Development Center and education investments, like the new Northern Marianas College campus, are laying a foundation for growth.
Meanwhile, his administration is continuing to lobby Washington for urgent relief and regulatory clarity to help attract back international carriers.
'That's something that as these things really settle, we need to be very up front with the federal partners and tell them that the Commonwealth is exponentially feeling these impacts a lot more than if you are in the mainland United States.'