Hyatt Regency hotel in Saipan will shut its doors for good Photo: Supplied
An economic survey conducted two years ago by the US Census Bureau gave a sobering outlook on the Commonwealth of the Northern Marianas' (CNMI) economy.
The 2022 Economic Census results, officially released last week, showed declining numbers of business establishments and revenue when compared to the figures in 2017.
Marianas officials have been calling for more international flights, while a new program is in place to attract more tourists from China.
However, the governor Arnold Palacios said a 'China or bust' position is not the answer.
The US Census Bureau report showed that the largest decrease was in revenue, which went down 51 per cent - from $3.6 billion generated by CNMI businesses in 2017, to $1.7 billion five years later in 2022.
This is attributed mostly to the shrinking number of business establishments, according to the 2022 Economic Census, as the number of CNMI listed companies decreased to 1,523 establishments in 2022 compared to 1,742 back in 2017.
As for employment, the census reported that, naturally because of the dearth of companies, available work went down 36 per cent - with 14,488 employed in 2022 compared to 22,652 in 2017.
The US Census Bureau said aside from the COVID-19 pandemic, one of the driving factors was the loss of the CNMI's casino industry.
Economic Census assistant survey director Bobby Nusz said they've seen a big change in Sector 71, which includes the gambling industry, "which is driving these decreases we think".
"We are also seeing lingering impacts of the pandemic on tourism, particularly in the hotel and retail sectors."
Last month, it was announced the Hyatt Regency in Saipan would close after 43 years.
In late May, the Northern Marianas' Hotel Association chair said its members were struggling.
Dennis Seo said all hotel members are losing money, and even the peak summer months of July and August are not looking positive.
The Marianas Variety said the association reported a 35 percent average occupancy rate among its 13 member hotels for April.
The Association said hotels typically require around 70-80 percent occupancy to stay in operation.
However, association vice chair Ivan Quichocho said no one is openly talking about closing doors.
Board member Sachiko Gerrard said they plan and discuss what is needed as association members.
