The CNMI faces many obstacles to building a resilient and sustainable economy. Challenges include limited natural resources, a small domestic market and skilled labour shortages.
The CNMI’s economy is also largely influenced by external factors such as global economic trends, federal regulations and natural disasters.
Voters, supporters and political party members gathered in Susupe to hear the congressional candidates’ positions on pressing issues important to the CNMI.
Five candidates are gunning for the delegate house to succeed Rep. Gregorio “Kilili” Sablan, who has been in office since 2009. Now on his eighth term, Sablan decided not to seek reelection, hence the crowded race.
At the 2024 delegate debate hosted by the Saipan Chamber of Commerce, candidates Kimberlin King-Hinds (Republican), Edwin Propst (Democrat), and three Independents—John Gonzales, Liana Hofschneider and James Rayphand—discussed their positions on the economy, tourism and healthcare, among other topics.
They shared their plans on how the CNMI could leverage federal initiatives to enhance the tourism sector and stimulate overall economic development. They also addressed the potential reinstatement of the Annex VI provision of the U.S-China Air Transport Agreement of 09 July 2007, which would allow the resumption of unrestricted scheduled air transportation between China and the CNMI.
King-Hinds, an attorney and former chair of the Commonwealth Ports Authority, noted that the local economy thrives when it combines tourism with another industry.
She said the economy was at its peak when tourism was paired with the garment and casino industries, both of which are no longer present. King-Hinds supports the reinstatement of Annex VI, saying, “I’m here to represent the interests of the people of the commonwealth, not the federal government’s interests in the CNMI. The people are asking for [Annex VI] to be restored, and I will continue to fight until this happens.”
King-Hinds doubts the military buildup in Tinian is the economic solution for the CNMI. She argued that the military is not a permanent industry and that the CNMI should not rely on it to fill economic gaps.
Rayphand, a long-time educator and former director of the Office of Vocational Rehabilitation, disagreed with King-Hinds, saying the military presence in Tinian can coexist with the tourism industry to support the economy. “Military personnel are tourists, too,” he said.
Rayphand advocates for the reduction of travel costs to the CNMI and supports the reinstatement of Annex VI.
Calling himself the “economy delegate,” Gonzales, a business consultant and grants writer, plans to invoke Section 904 of the Covenant to include the CNMI in U.S. trade missions and destination branding to attract American investments. He also supports the reinstatement of Annex VI, stating that the free-market enterprise demands it.
Hofschneider, a Chamorro activist, does not support the Annex VI reinstatement. He advocates exploring new tourism markets allied with the U.S. “There are over 20 bills being entertained in the U.S Congress regarding China,” she said. “We cannot be blind to this. What we need to do is find another source of tourism.”
Hofschneider proposed the creation of an institute of volcanology, geoscience, technology and international studies at Northern Marianas College to stimulate the economy through education and research funding.
Propst, current House floor leader and a five-term representative, said he would work for the reinstatement of federal funding under Section 702 of the Covenant, which previously provided about US$28 million annually, adjusted for inflation to approximately US$58 million to US$60 million.
He said these funds could be used to reinvest in infrastructure for the Commonwealth Utilities Corp. Also raising security concerns regarding China in connection with Annex VI, Propst argued that the CNMI needs to attract high-end tourists who would spend more at local businesses.