Ltrs

BEACH ROAD. GARAPA. P. O. BOX 500799

SAIPAN OCEAN \HEW H-OTEL

SAIPAN, MP Yb950 TEX. #: I (670) 23-1-S90 ) FAX#: (0)_ 9.+2 E-~1 A.ll

\""EBSITf

sovhspn@pticom. v W\\\\

\\ S upanho c l.cim .c nmi-gurde.corn sovh

January 12,2009

Ms. Janet Napolitano Secretary - appointee U.S. Department of Homeland Security Washington D.C., 20528

Dear Ms. Napolitano, I invested most of my time and my life making Saipan my home during my 33 years on this island. In 1987, I started a business in the hotel industry. I have been in the hotel business for the past 22 years and currently own and operate an eighty-seven room hotel in Garapan, Saipan. The island's primary source of revenue comes from tourism. However, arrivals of Japanese tourists have quickly declined as their economy is not doing so well either. What is still keeping us afloat are the arrivals of tourists from Russia and China that have taken up a strong spot in tourist arrivals to Saipan. Tourism is the backbone to Saipan's economy. Without tourists from Russia and China, the economy of Saipan will be severely hurt. Iearnestly implore you to consider to waiver the visas for these two countries, as these markets have contributed significantly to the success of my business and to the islands' tourist industry as well.

S1e~IY,

I

(I.~~1{XAM1

Linda Lam Saipan Ocean View Hotel-

President

cc. Governor Benigno R. Fitial

com

ppj PACIFIC DEVELOPMENT

PO. BOX 500502 SAIPAN,MP 96950-0502

TEL(670)322-8770

INC.

FAX(670)322-8794

Web Site - http: /I www.pdisaipan.com

January 13, 2009

Ms. Janet Napolitano Secretary-Appointee U.S. Department of Homeland Security Washington D.C. 20528 Dear Ms. Napolitano; I am writing on behalf of Pacific Development Inc., (PD/). A tour company established the past 36 years we have observed the transformation taken place in the Marianas.

in 1973 and for

I am for home land security and for protection of our U.S. borders, however I am sympathetic over these islands and if we are not very caution of the steps taken, the CNMI will loose its destination among travelers from China and Russia. I believe you are aware of the global economic condition and its adverse effect on the CNMI and with the uncertainty over Federalization; businesses are shutting down, large exodus from the local community ( Chamorro / Carolinan ) are moving away. How much more can the CNMI take, is just a mere question in everyone's mind, some have shared their thoughts that it is about time, for others we need more time. Whether it is now or sometimes down the path, the question we must ask ourselves "is the CNMI well of now then years ago" .. I can only share my compassion for the people and of this isles, if I were to leave today due to all the uncertainty I only ask for your heartfelt willingness to help. For whatever the result and the outcome from the decision made under the U.S. Interior and U.S. Congress, it must be strategically define for the people of the CNMI are suffering today, there are no other industries to depend on and I am only afraid the only remaining industry will diminish as well. There has to be some considerations for these islands depend mainly on tourism.

Cc:

Honorable Benigno R. Fitial, Governor, CNMI Business Activities

1. Tour Operation and Ground Sea- Transfers 2. Inbound and Outbound Operations 3. Various Tours Planning and Sales

4. New Business Development 5. Local Travel Related Information Research 6. Events Coordina th

Matsunagacho

JAPAN: HOLIDAY TOURS MICRONESIA CO., LTD. Tokyo Kintetsu Bldg. 9 Floor, 19-2, Kanda Chiyoda-ku, Tokyo, 101-0023 TEL.(03)3255-5691 FAX.(03)3255-5706

~",\t-lL ••(J

Rtsr-1U-L "">

."

360 '..

.s

~J'''f#~I~'''''t"

January 13, 2009

Ms. Janet Napolitano Secretary - Appointee U.S. Department of Homeland Security Washington, D.C. 20528 Dear Ms. Napolitano: I am writing on behalf of Revolving Restaurant 360 located on Saipan, Commonwealth of the Northern Mariana Islands to let you and your colleagues know how important the Russian and Chinese visitor market is to my business. In these challenging economic times globally, every dollar that is spent in my business is vital. The visitors from Russia and China make up a substantial amount of my visitor customer base and without them I am not sure of the fate of my business on Saipan. Should we not have access to these visitors and I was forced to either further reduce hours or to close my doors I would simply add to the economic burden that already exists in the CNMI. With unemployment numbers at an all time high throughout the United States, I urge you to give strong consideration to allowing the visitors from Russia and China to continue to visit the CNMI in the same way they have been able to for the last few years. I see no reason to add to the already staggering unemployment numbers that are growing exponentially every month. I have the utmost respect for the U.S. Department of Homeland Security and know that you will do the right thing when it's time to issue your statement about these two very vital visitor markets for the CNMI. The right thing is to allow them to continue visiting our beautiful islands and to allow our suffering economy an opportunity to rebound without crippling us further. Please feel free to contact me with any additional questions you may have. You may reach me via phone at 670.483.1324 or via email [email protected] . Thanks and regards,

Andy Tidwell Proprietor cc: Mr. Benigno Fitial- Governor; Commonwealth of the Northern Mariana Islands Revolving Restaurant 360 PMB 306 P.O. Box 1‫סס‬00 Saipan, MP 96950 TeL#285-036O/234-3600 234-1610 Website: www.360saipan.com

ClFi;cc;oif)

-($

~

S:iJ:B1lrc

TONYRo~· RIBS

SEAFOOD

January

STEAKS

13, 2009

Attn: Ms. Janet Napolitano Secretary - Appointee U.S. Department of Homeland Security Washington D.C. 20528 CC:

Mr. Benigno R Fitial Governor of CNMI

From: Akira Onishi General Manager WDI Saipan, Inc. dba Tony Roma' s/Capricciosa

Re:

Chinese and Russian business impact on Tony Roma' s and Capricciosa Saipan

Dear Ms. Janet Napolitano,

My name is Akira Onishi, General Manager of Tony Roma' sand Roma's

Capricciosa

(TR) is, as you know, one of the most famous 88Q Ribs restaurant

Capricciosa (CAP) is the most popular casual Italian trattoria have been operated

Saipan. Tony

in the world, and

in Japan, and both restaurants

10 years in Saipan already as the most popular restaurants.

We have. of course, many local guests everyday. on the other hand TR and CAP are the one of the tourists' tourists

destinations.

we have also many tourists

everyday

every night. Japanese

usually stay in Saipan 4 days. most of them have lunch or dinner in TR or CAP once

during their stay in Saipan. However most Russian tourists

stay Saipan two week or more. So

once they like TR or CAP. they keep coming back many times in two weeks. And all of them are good spenders. agreements

so they help our business

very much. And also we have lunch meal coupon

with some Chinese Travel Agencies. so they are sending us many Chinese guests

for their lunch everyday too. Therefore

if we lose both Chinese and Russian tourists

Saipan. TR and CAP sales must be decline 20-25% from now.

F

This is the Chinese and Russian business impact of TR and CAP.

Akira Onishi General Manager WDI Saipan, Inc.

dba Tony Roma' s / Capricciosa address: PO.Box 5236, CHRB·124. Saipan, MP 96950 tel: +1'670'322'7516 / fax: +1'670'322'7517 / e-mail : [email protected]

from

••

Belka~rs

License 14768-0004 PMB 458 PPP 10000, Saipan, MP 96950, USA Phone: + 1 (670) 234 6284; Cell: + 1 (670) 483 9616/15/11; Fax:+ 1 (670) 234 6286 [email protected]· [email protected]· [email protected] www.saipania.com

From: Sasha Co., Ltd. To: Ms. Janet Napolitano Secretary - Appointee U.S. Department of Homeland Security Washington D.C. 20528 Saipan

01/13/09

Dear Madam, I would like to bring to your attention my view on Russian tourism and Russian investment sectors in Saipan. The Sasha Co., Ltd. is registered and operates in the Commonwealth of the Northern Mariana Islands. The corporation heavily depends on the Russian market due its specialization on handling Russian tourists on Saipan and other islands of the Mariana archipelago. In our estimation our tourism division Belka Tours has around 15% of the Russian tourism market on Saipan. In 2008 calendar year Belka Tours paid to hotels for customers accommodation, meal and transfers $950 315. In our experience an accommodation and an on-premises meal expenses consist close to 40% of spend on Saipan money. What allows us to estimate that our Russian customers spend on Saipan close to $2.4 M. Russian tourists arriving to Saipan mostly belongs to an upper level of middle class and an upper class of the Russian society. Those people already have established social and economical positions. Those people have demand for high class service and they are able and ready to pay for it. This means that Russian tourists do not like to use cheap or unlicensed services what in its turn means that money brought in by Russian tourist move via legitimate tax paying businesses. Many Saipan operators approach to us with request provide them with Russian clients who readily pay top money. MVA, Saipan hotels and our corporation are working hard to promote Saipan and CNMI in Russia as a tourism destination the major attraction of which are tropical climate in proximity to Russia, acceptable time difference and easy access. Those factors motivate Russian visitors to look into investment projects related to real estate. In respond to this trade Sasha Co, Ltd. stepped into a few investment projects. This allowed Russian investors to invest in Saipan in 2008 via next Sasha Co, Ltd. divisions: 1. Pacific Rim International -$913,000.00 2. Sasha CO.Ltd - $ 1262,000.00 3. Sasha International Inc. - $ 2788,000.00 4. Privat Investors - $ 1134,000.00 Russian tourists express great interest in the Russian tourism market future in light of the coming federalization of the CNMI immigration. It would be safe to say that more as 95% respondents said that they will not chose CNMI as their vacation destination if it will require an application for the USA visa due to very complicated procedures involved. This allow us estimate that after 01 June 2009 Sasha Co., Ltd business will suffer 95% reduction what will lead to immanent business shut down. The business close will make 12 people unemployed 6 of which will be US citizen. On top of it I would like to add that Russian investors looking into buying or developing property for recreational purposes. They do not tend to live on Saipan constantly. They rather would like to have some retreat which they can attend 30-40 days at one time. The visa free short term access to the property would suit them very well. Without such option the attractiveness of Saipan and Marianas will be greatly reduced. This will be transformed in a gradual Russian investments retraction.

Sincerely, Alexander Vekhov President Sasha Co., Ltd.

(~PACIFIC ISLANDS CLUB 13 January 2009 Ms. Janet Napolitano Secretary - Appointee U.S. Department of Homeland Security Washington D.C. 20528 Dear Ms. Napolitano, Russian tourists, although relatively small by arrival numbers, provides a disproportionate amount of revenue in terms of tourism dollars to the CNMI. Unlike many of the Japanese and Korean tourists who stay only 3 to 4 nights, Russian guests linger at their destination by 1) sight seeing through optional tours, 2) dining at the local restaurants, 3) shopping at the many stores, 4) renting cars, 5) opting for our higher-end Deluxe, Ocean Front and Suite rooms during their average two-week holiday, and 6) flying Business Class. We at PIC have developed an extensive loyalty guest program with Russian tourists who return more than twice during the year. This last year, PIC accommodated over 3500 guests and in November 2008, the hotel celebrated our 10,000th Russian guest! As compared to PIC's Japanese and Korean clientele, our Russian guests are not as easily impacted by the global financial instability. When they learned of the possible end to the current Visitor Entry Permit system, more of our Repeater Guests booked rooms so that they could travel to PIC, one of their favorite getaways. PIC's fiscal year ends in January and we will break all records for the Russian market in terms of room nights (19,500+) and volume ($4 million). They now comprise a substantial 23% of our market mix, even surpassing our Japanese market. Russian guests are the only ones who can truly take advantage of the "3-island, 3-times the fun" motto designed by the Marianas Visitors Authority. Not only can they spend a day or two in Tinian, they can also see the natural beauty and charm of Rota. Since 1996, MVA, along with hotels such as PIC and Hyatt, have actively marketed to the Russian travel agents, Russian guests and airlines to not only promote the destination but to lure tourists to the beautiful islands of the CNMI. At an estimated cost of $1.2 million and as a result of these marketing and promotion efforts, Russian arrivals to the CNMI has grown from a total of 266 visitors in fiscal year 2005, to more than 6,000 visitors in fiscal U.S.

1

year 2008. This represents a growth of more than 103 % in just a few years. In FY 2009, visitor arrivals from Russia to the CNMI continue to increase as compared to last year. PIC is a staunch supporter of the Visa Waiver Program for Russian tourists. The CNMI's economy, much like the US's is in a state of shambles and another blow to tourism will undoubtedly crush the fragile economy. More jobs will be lost and more businesses will shut down, leaving a third-world type environment to a newly USfederalized island-nation. In 2007, PIC decided to build an extensive $3.8 million wellness center / spa to cater primarily to the Russian visitors. Most recently, the spa project has been halted and awaits the news of the DHS's Guam/CNMI visa waiver program. Should the Russian tourists be denied to access the CNMIwithout a USvisa, PIC will not be able to proceed with this grand-scale investment. The Japanese and Korean tourists simply do not utilize the spa enough to erect and support this type of project. At this time, PIC is hopeful that DHSand the CNMIofficials/businesses can work cohesively to unearth an innovative plan so as to not destroy the lucrative Russian market.

52 oC? Y

Kieran M. Daly General Manager

Cc:

Governor Benigno R. Fitial, Commonwealth of the Northern Marianas Perry J. Tenorio, Managing Director, Marianas Visitors Authority

KD: vb

P.D. BOX 502370 SAIPAN, MP 96950 TEL: (670) 234 - 7976 FAX: (670) 234 - 6592 EMAIL: [email protected] www.pacificisiandsclub.com

2

alms He January

14,2009

Ms. Janet Napolitano Secretary' Appointee U.S. Department of Homeland Security Washington D.C. 20528

Subject: The impact of Chinese and Russian tourists on the CNMI

Dear Ms.Napolitano Palms Resort Saipan is a 313-room hotel on the island of Saipan, Commonwealth of the Northern Mariana Islands (CNMI). The continuously rising number of Russian and Chinese tourists here in the CNMI is something that we have been positively looking forward to. Because of our proximity to China, CNMI is fast becoming a tourist destination for the Chinese. And as for the Russians, they stay in the islands for about 7 to 10 days, which contributes a big chunk to our hospitality industry. For the year 2008, our hotel has been host to approximately 6,800 Chinese and Russian tourists. Our forecast for the first three months of year 2009 is even higher than our 2008 numbers. With the exclusion for the Russians and the Chinese in the single visa waiver program, the CNMI stands to lose a lot of business and will put more strain on an already strained economy. We hope that the Department of Homeland negative impact of this to the CNMI.

Security

will take into consideration

Thank you for your attention. Sincerely yours,

.: ~Isq L)o General Mana~

Cc: Gov. Benigno R. Fitial

P.O.BOX5152 CHRB,Saipan, MP 96950

Phone: (610) 322-3311

FAX:(610)322-3144

the

January 14,2009

Ms. Janet Napolitano Secretary - Appointee U.S. Department of Homeland Security Washington, D.C. 20528

Dear Ms. Napolitano: This letter is on behalf of Pacific Subsea Saipan a USA owned business in Saipan, Northern Marianas Islands describing the concerns we have regarding impending federal foreign visitor visa regulations. Please allow me to giveyou a quick brief of our company; We are a USA owned and managed company operating at Saipan for over twenty years. Our company is the largest marine tour operator in the Commonwealth, employing 31 people offeringmarine tours to our visiting guests. Our tours include the internationally recognized tourist submarine "Deepstar" and several other large capacity tour vessels. Over the years we have entertained over one million passengers with safe and reliable tours. Our company, a long time Marianas Visitors Bureau member has been active in promoting tourism at Saipan. We have participated at international trade shows, fairs and other promotional events. Also an active contributor in the community by offering school field trips aboard our vessels as well as other special cultural events. As a pioneer in tourist submarine operations we acted in advisory roles with United States Coast Guard and American Bureau of Shipping establishing safe operating procedures in the specialized field of tourist submersibles and participated in international technical society committees. Our business is supported primarily from Asian tourists who find Saipan a pleasing tropical destination relatively close to their homes for short term visits. Generally the ethnic compositions of these arriving guests at our business are Japanese, 50%, Chinese 40%, and others mostly Koreans and Russian. Very few American tourist as the travel distances and cost are too great.

PACIFIC SUBSEA SAlPAN, INC. Lower Base, Mangrove PI, PMB 672 Box 10000, Saipan, MP 96950 Tel. Office (670) 322-7734 Fax (670) 322-7735 Tel. Reservation (670) 322-7746 to 48 Fax (670) 322-4770

Saipan has very limited local labor resources. We have made attempts to employ locally with on the job training programs in conjunction with USCG producing licensed mariners who meet the standards for our vessels. We are pleased to say we have been successful staffing our technical vessels. Our staff is composed of a mixture of US citizens 50% and foreign contracts employees. Our vessel and crews operate according to Code of Federal Regulations through federal authorities, USCG and ABS. We are most concern about the recent discussions to imposed regulations that could slow or halt the flow of tourist from China and Russia and the impact this could have on our small business. USA visa approval is uncertain and time consuming for the average long weekend foreign visitor. We ask you to consider our good history with Chinese and Russian visitors under local immigration control and develop a mixture of regulations that satisfy federal concerns but keep Saipan open to the strong emerging markets in Asia. We simply ask for regulations that allow us to grow our business and provide economic support to the local community. Please contact me at [email protected]. If you have time, please visit our sub and enjoy the tour aboard Deepstar.

s,

cc: Governor Benigno Fitial, Commonwealth of the Northern Mariana Islands

PACIFIC SUBSEA SAIPAN, INC. Lower Base, Mangrove PI, PMB 672 Box 10000, Saipan, MP 96950 Tel. Office (670) 322-7734 Fax (670) 322-7735 Tel. Reservation (670) 322-7746 to 48 Fax (670) 322-4770

-

rf) Tinian t y nrfe2no Y

®

January 14, 2009

Janet Napolitano Secretary - Appointee Us. Department of Homeland Security Washington D.C 20528

Dear Secretary Napolitano,

I am writing to you on behalf of our Chairman Michael Kwan ofTinian Dynasty Hotel & Casino located on the island of Tinian in the Commonwealth of Northern Mariana Islands. The purpose of this letter is to ask for your kind consideration and assistance in the visa waiver program for Chinese tourists to visit the Northern Mariana Islands. First, please allow me to present some background information. The residents of Tinian voted to allow casino gaming in 1989 as an added attraction to promote tourism to Tinian. Chairman Kwan was the first investor to take up the challenge of building a world class 5 star resort in 1996. His group of investors spent US$140 million in completing the resort hotel in 20 months. Tinian Dynasty Hotel & Casino opened for business on April 25, 1998. Back in 1995, 1996 and 1997, CNMI's tourism was flourishing with more than 750,000 arrivals each year. For an investor who was interested in building a hotel in CNMI, it would seemed like a sound investment. No one could have known that the Asian Economic Crisis hit the entire region of Asia in 1998. CNMI tourist arrival plummeted to less than 500,000 arrivals each year. A decline of more than 33%. Yet the hotel continued to survive under the most difficult circumstances. We had to find ways to develop new markets to overcome the loss. With the support ofCNMI government and Marianas Visitor Authority, we began to develop the China market which has a tremendous potential to replace the declining Japanese market. It took 3 years of hard work and planning. Finally the first charter flight from Guangzhou, China arrived on April 19, 2002. Over the past 61/2years, China market represents almost 80% ofTinian Dynasty Hotel & Casino's market share. Chinese average spending per year was $745 per person in hotel rooms food, shopping, tour activities and other miscellaneous. Based on the average of 35,000 visitors per year, total contribution to the local economy would be $25,550,000 per year. Casino revenue accounted for another $10 million per year. Government tax contribution was another $3,751,250 (see attached). Aggressive plans are under way to further increase arrivals from China in 2009 with additional flights from Shanghai and Guangzhou to double the arrivals to 70,000 visitors a year. These

One Broadway, P.O. Box 468, Tioiao, MP 96952 USA Telephone: (I 670)328-2233 Facsimile: (I 670)328-1133

70,000 visitors will generate $52,150,000 into local economy and contributes $7,555,000 to government tax revenue. Over the past 61/2 years, Mariana Visitors Authority and Tinian Dynasty invested millions of dollars to develop the China market and to promote CNMI as a resort destination. If the Chinese tourists are not able to visit CNMI due to requirement of a US visa, all the investment over the past 61/2 years would be lost. Without the China market which accounts for 80% of our occupancy and 50% of the revenue, Tinian Dynasty Hotel & Casino may not survive the losses. When the hotel has no choice but to close down its operation, it will undoubtedly affect the island of Tinian. We are the only resort hotel on the island since the gaming law went into effect in 1989. We offer the best private sector employment opportunity for local residents. Our 650 employees will be out of work. IRS and CNMI government will loose their share of FICA tax and local tax collection from these employees. And the island of Tinian will be without her only resort hotel to accommodate tourists. The current visitor Entry Permit (VEP) program had proven to be very successful with the local Immigration Department and the Attorney General Office in control of issuing the VEP to qualified visitors. Over the past 61/2 years, more than 200,000 Chinese tourists visited CNMI. As of today, our record indicated only 1 overstay guest has not returned to China. Chairman Kwan sincerely requests your utmost consideration to develop a simplified visa regulation for the China market to allow CNMI to continue to develop the potentially huge China market. Chairman Kwan looks forward to your favorable response and thank you in advance for your understanding & cooperation.

Sincerely yours,

TomLiu Hotel General Manager

cc.

Honorable Governor Benigno R. Ftttal Perry Tenorio, Managing Directo , MVA Lynne Knight, Chairwoman, HANMI

One Broadway, P.O. Bo" 468, Turin, MP 96951 USA Telephoae: (1 670) 313-1133 Facsimile: (1 670) 318-1133

Chinese Tourist Average Spending per person per visit In the past years: Food Room Miscellaneous Transfer Tours Shomlli:!g Total

$180 $140 $70 $15 $140 $200.00 $745.00

TDHC revenue Total spending

$10,000,000.00 $36,075,000.00

Government Tax Contribution: BGRT Airport Arrival & Departure Fees Passenger Facilities Fee Ferry Passenger Fee Tinian Municipality

2009 Forecast Guangzhou Shanghai Asiana/NW /Extra charter Total TDHC revenue Total

* 35,000

person

$26,075,000.00

$36,075,000 * 5% = $1,803,750.00 $11.75 * 35,000 pax = $411,250.00 $4.50 * 35,000 pax = $157,500.00 $2.25 * 35,000 pax = $78,750 $10,000,000.00 * 13% = $1,300,000.00

70,000 person 104 flight * 198 pax 208 flight * 221 pax 70,000 * $745.00 $20,000,000.00 $72,150,000.00

Government Tax Contribution: BGRT Airport Arrival & Departure Fees Passenger Facilities Fee Ferry Passenger Fee Tinian Municipality

=

20,592 45,968 3.•444 $52,150,000.00

$72,150,000 * 5% = $3,607,500.00 $11.75 * 70,000 pax = $822,500.00 $4.50 * 70,000 pax = $315,000.00 $3.00 * 70,000 pax = $210,000.00 $20,000,000.00 * 13% = $2,600,000.00

PRACTICAL SOLUTIONS PMB 112PPP Box 10,000. Saipan, Mp.

96950. (670) 256~2277

January 14,2009

Ms. Janet Napolitano Secretary - Appointee U.S. DEPARTMENT OF HOMELAND SECURITY Washington, DC 20528 Reference:

Chinese and Russian Tourists in the CNMI Economy

Dear Ms. Napolitano: Please allow me a quick introduction. My name is Laurie Peterka, independent consultant here in the CNMI since 1998. Prior to becoming an independent consultant, I spent four and half years working directly in the tourism industry here in Saipan. In 1993, I worked at what was then the Diamond Hotel, and then moved to LOMAR CNMI, Inc, which operated several businesses including Hertz Rent-A-Car and the gas station on the road heading out to the airport. Between 1993-1998, I was a direct witness to what was a peak in the tourism industry and the beginning of a slow decline. In fact, I made the decision to change my professional direction, because I could see that the tourism-slide wouldn't stop anytime soon. Here we are 10-years later. Our struggling tourism industry is working hard to continue to diversify and to stay afloat. The Japanese market is soft and flat due to Japan's own economic struggles and the continued decline of international outbound tourists. Korea's recent monetary crash has all but halted any further Korean investment. The CNMI is hardly in a stable financial position to compete with surrounding area destinations with our current budgets. For the last five years, I have become an active member in the community, volunteering my time to the Marianas Visitor's Authority and their events as well as the Northern Marianas Hotel Association, Saipan Chamber of Commerce, the Rotary Club, the Northern Marianas Volleyball Association, and Island SK8 Society. In each and every one of these groups, we all in some way or another do what we can to help tourism. From sitting on committees to making ourselves available to provide talent and manpower for tourism events within the community. As an independent business consultant and entrepreneur, I am involved in several businesses including being a partner in a couple of tourism related businesses. We cannot afford to lose any more tourists. Most especially, tourists that are willing to stay longer, explore and spend money in our economy. For example, Russian tourists have developed from a few tourists from Vladivostok and Khabarovsk in 1996-1998 to over 7,000 tourists from all over Russian and Kazakhstan, ten years

PRACTICAL SOLUTIONS PMB 112PPP Box 10,000. Saipan, MP • 96950. (670) 256~2277 January 14, 2009

DEPT OF HOMElAND SECURITY Chinese and Russian Tourists in the CNMI Economy Page 2 of2 later. The number of tourists is actually quite disproportionate to the number of room nights and revenue they provide the CNMI in terms of straight tourism dollars. Because the Russians typically stay for two weeks, they have a greater opportunity to visit all the shops, restaurants, optional tours and other islands (Rota, Tinian) at their leisure. Truthfully, they are the greatest spenders and stay at the higher end hotels with their families to thoroughly enjoy the sun, sand and tropical climate. They have become the ideal CNMI tourist. Should the CNMI lose this productive market, the islands' economy will inevitably disintegrate. At this point, I would guess that you get the picture. Not just from my recap above, but from the many other businesspersons here in the CNMI that have undoubtedly also written to you asking to support the CNMI's effort and to allow us to remain diversified with our tourism effort. In closing, please facilitate our business community's and MY A's efforts to provide special provisions for the Chinese and Russian tourists in the regulations that will govern who is allowed to travel to and from the CNMI. The survival of our economy depends on Homeland Security giving the CNMI this special provision. If you have any questions or would like to discuss this subject any further, please contact me by phone (670) 483-7499 or by email [email protected]. Thank you kindly for taking the contents of this letter into consideration as Homeland Security makes its final decisions.

aurie Peterka Owner/Consultant

xc:

Governor Benigno R. Fitial Saipan Chamber of Commerce Hotel Association of the Northern Mariana Islands Marianas Visitor's Authority

Page 2 of2

CENTUR~ TOURS~ A TanHoldings

Company

January 14,2009 Governor Janet Napolitano Secretary (Nominee) United States Department of Homeland Security Washington, D.C. 20528 Re:

Chinese and Russian Tourism in Commonwealth of the Northern Mariana Islands

Dear Governor Napolitano: The Commonwealth of the Northern Mariana Islands' economy is dependent upon a viable tourism industry. The importance of the tourism industry has been amplified by the recent demise of its garment manufacturing industry. The purpose of this letter is to emphasize the importance of the continuation of the CNMI Visa Waiver Program for both Chinese and Russian tourists. Century Tours began business operations in January, 2004, with an emphasis on developing the Chinese tourism market in the Commonwealth of the Northern Mariana Islands. As part of our business plan, we arranged, with the cooperation of the Commonwealth of the Northern Mariana Islands' Government, charter flights from the cities of Shanghai and Beijing to Saipan. As a result of these efforts, Century Tours has brought into the CNMI approximately 40,800 Chinese tourists. These Chinese tourists spend an average of $745.00 per person per trip. In 2006, we processed 10,904 Chinese tourists bringing in over $7,450,000.00 in revenue. We project that more than 31,778 Chinese tourists will visit Saipan in 2009, with projected revenues of over $23,674,610.00. An exhibit is attached summarizing these numbers. A review of these numbers will show that the CNMI Visa Waiver Program plays a vital role in the future success of the CNMI's tourism industry. It is respectfully requested that this Program be continued for both Chinese and Russian tourists. Respectfu 11y,

Ronald Chan Century Tours General Manager

cc: Governor Benigno R. Fitial Address: SAIPAN GRAND HOTEL P.O. BOX 500369

Saipan, U.S.A

Tel: +1-670-234-6601

ext.163

Fax:+1-670-2336084

Chinese Tourist Average Spending per Visit Item

Daily Revenue

Hotel F&B Miscellaneous Shopping Transfer Tours

Total $40 $40 $20 $200 $15 $140

Total Spending per PersonlTrip Year 2006 2009

Remark 180 averaqe stay 4.5 nichts 140 averaqe stay 3.5 days 70 averaqe stay 3.5 days 200 15 140

745

35,000

Total Spending $25,550,000

63,556

$46,395,880

Total Visitors

2009 Forecast Visitors Origin Guangzhou Shanahai OZJNW/Additional charter flight

Flight Numbers

Incoming passanger 90% load factor per flight 104 178 pax 200 pax 208

Total incoming Passanaer 18512 41600 3444 63,556

Ak 7f".

WORLD

RESORT

SAfPAN

January 14, 2009 Ms. Jane Napolitano Secretary - Appointee U. S. Department of Homeland Security Washington D.C. 20528 Re: Importance of Chinese and Russian Tourist Markets in the CNMI Dear Ms. Napolitano: Saipan World Resort is a family-oriented resort which offers a wide array of activities for tourist guests and local residents alike. Since the completion of our hotel's room renovation in 2006, the Russian market had begun to earn its merits. Each year, Saipan World Resort has enjoyed the tremendous increase in this market. Russian market room/night sales 6000

5000

Year

4000

2006

Room Nights 419

3000

2007

2,098

2000

2008

5,012

1000

o

I

'

•...

,

PI"

I

i

Year 2006

Year 2007

••..

~

Year 2006

The Russian market has grown very strong over the last few years as shown above. Only in January 2009, we have sold 1,236 room nights. That makes up about 23.4% of the month's room sales. Moreover, they are the longest staying tourist guests of an average of 13 room nights. Whilst they are on the island, they continue to spend, thus pumping into the economy. Without a visa waiver program for these markets, tourism in the CNMI would be adversely affected. A sudden drop of arrivals from Russia would not display the image of a leaning tower. Rather, hotels together with other shopping and leisure outlets of the CNMI will suffer the collapse of a market that may also result in downsizing in employment.

We hope that the U.S. DHS serious consider the impacts due to the loss of these markets. With garment factories phasing out of the CNMI, our islands need to resort to other resources that we have. Tourism in the CNMI plays a vital role as a travel destination for many markets because of its tropical weather, close proximity and short travel time from most parts of Asia. Thank you for the opportunity to comment on the above issue. Sincerely,

Hong Chul Shin Vice-President I General Manager cc

Benigno R. Fitial, Governor, CNMI

6702882007

Ladera Int'!. School of Sa

07:53:28

01-15-2009

2/2

:C~.o!J

~i. Ladera Ir.temational School of Saipai' I PM" 1465PO Box 1()"A5Sa~ MP%95C I run J.q~n Da Rd Fi.~s...
January 14,2009

Ms. Janet Napolitano Secretary - Appointee U.S. Department of Homeland Security Washington D.C. 20528

Hafa Adai Secretary Appointee Napolitano: It is my privilege to write to you in regards to the impact of our Chinese and Russian visitors to the CNMI. Given our current economic situation, our core tourism markets of Japan and Korea alone cannot sustain the CNMI's economic needs. As a school, we are at the forefront of develping education-tourism for the CNMI. In our past year, we have successfully introduced the education-tourism concept to Russians and Chinese interested travel agents who are looking at packaging our offer to learn English on U. S. soil. Forunately we were able to reap a benefit from one Russian group out ofYuznoSakhalin, a group of 10 students and their chaperones who enrolled in our school for a special program that lasted for 19 days. This resulted into great economic relief for my school and provided added exposure to be seen as the next CNMI industry or satellite tourism account. As a satellite tourism account-education, in brief, guest come in for a longer period of time to study English, whilst their parents, friends and other relatives make a visit to come and see how they are doing, thus, enabling business on island for hotels, souvenir shops, restaurants, golf courses, spas, and more that benefit altogether. Overall, the Chinese and Russian visitors contribute highly to our economic needs and at this point in time, it is favorable to continue supporting the CNMI in the movement to progress in our efforts to increase tourism arrivals from these two countries .

./

~ v. Pangelinan Director/Owner's Representative

~/

"',

;

.,! "

1

I 1

I

.I

;

1/1

v£:91 6B-H-1B

INIOd N~330 1~H03

S6BLv£ZBL9

BRIDGE

INVESTMENT

NEW YORK· CIllCAGO· PlllLADELPlllA· PO BOX 800 TINlAN MP 96952

670

GROUP,

LLC

WASHINGTON, DC· ST PETERSBURG· CNMI 433 1111 /8888

670

433

4FAX

January 14,2009 Ms. Janet Napolitano Secretary - Appointee U.S. Department of Homeland Security Washington D.C. 20528 Dear Secretary-Appointee Napolitano: First of all, we would like to thank you for your time to accept written comments on the proposed economic impacts of US Federalization of the CNMI Immigration System. We hope that you view our comments in the same concern that we do and we strongly encourage you to personally visit the island of Tinian to see the direct negative impact to our island. Our company is a US company, comprised of 6 US Citizen Investors with the intention of developing a full scale casino-resort-condominium project on the island of Tinian. Our estimated investment is $50 million with an estimated 500 employees and to date, we have already invested nearly $6 million in the pre-construction development of our project. We have invested extensive time, effort and financial resources in developing our relationships in China and Russia in order to avail of the unique access the CNMI had to those markets (Visa Waiver - VEP). The recent federalization of the CNMI's Immigration by the US Government and the subsequent additional bureaucracy that federalization will place on our access to the Russian and China markets will negatively impact our business and could force our company to reconsider its investment in the CNMI. We would be happy to discuss the unique economic challenges that Tinian has and the fact that currently, China comprises close to 70% of the entire tourism market for the island. Therefore removal of access to that market would completely annihilate the micro economy on Tinian. We invite you and your team to Tinian to investigate impacts yourself.

Sincerely,

Phillip Mendiola-Long Executive Vice President Bridge Investment Group, LLC