CNMI Governor Arnold Palacios. Photo: RNZ Pacific / Mark Rabago
The administration of Marianas Governor Arnold Palacios is bracing itself for low tourism numbers this year, as it anticipates charter flights to slow down and the rumoured closure of a retail conglomerate.
The governor has submitted a proposed revised 2025 budget amid concerns tourist arrivals will plummet.
Local media reports acting Finance Secretary Bernardita Palacios anticipated a "substantial adverse effect" on the CNMI government's revenue collections.
"The potential withdrawal of charter services, particularly those from key airlines like Jeju Air, along with the possible closure of major conglomerate establishments that play a vital role in the local tourism industry, are expected to have a significant impact on our tourism sector," she said.
"These developments could lead to a sharp decline in tourist arrivals, affecting not only hotel bookings and transportation services but also local businesses that rely on tourism-related spending."
Governor Palacios said the Commonwealth government wants to address its "acute short-term cash flow challenges" by floating a pension obligation bond to make more budgetary resources available.
As a result, acting secretary Bernardita Palacios said the Department of Finance anticipates a substantial adverse effect on revenue collections, particularly in sectors such as retail, hospitality, and transportation, which are critical to the overall economic performance of the CNMI.
However, there is some good news with a second airline set to take off in the near future.
