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06/3/2025— CNMI businessman Jose “Joe” Ayuyu Sr., owner and operator of McDonald’s Saipan and Guam, said the Commonwealth must streamline its permitting process and welcome the U.S. military as an “anchor tenant” to stabilize and grow its struggling economy.
In a recent interview with Marianas Press, Ayuyu offered a candid assessment of the CNMI’s current economic crisis, pointing to leadership indecision, inefficient government systems, and the collapse of tourism as key challenges.
“The difference here in the CNMI is we don’t have the military, and we’re solely dependent on tourism—and tourism is in a really bad situation,” he said.
Ayuyu said the ongoing withdrawal of international flights, such as the latest announcement that Hong Kong Airlines is suspending its route, signals deeper vulnerabilities in the local economy.
“It may sound doom and gloom for the CNMI, but I look at this period as an opportunity to look at how the government is doing — to run it more efficiently and attract investors,” he said.
Permitting system needs overhaul
One of Ayuyu’s most emphatic suggestions was for the government to immediately address delays and inefficiencies in its permitting and business application process.
“There’s a pattern where a company wants to do business and they’re just given the runaround,” he said, citing a case where a Singapore investor waited months for approval.
“Most companies don’t have bad intentions. They want to come in, open a business, make money, and help the economy. We’ve got to help these guys, not make them pack up and go.”
Ayuyu said delays in processing permits discourage investment and lead to missed opportunities for job creation and economic growth.
“The CNMI is not the only place people can invest. If we want to compete, we have to change the mindset. If something’s good for the island, support it 100% and don’t waste time.”
He noted that businesses need to feel welcome and supported by government departments, not neglected.
“When I opened McDonald’s, no one from the government ever came to say thank you or ask how they could help. It’s disheartening,” he said. “It should be the norm to encourage and support local businesses.”
Military as a reliable economic partner
Ayuyu also emphasized the need for a more strategic long-term partner—the U.S. military. He said the CNMI should welcome more U.S. Department of Defense investments to establish a stable stream of revenue.
“What we really need is an anchor tenant. The military is steady. They’re there in good times and bad. Guam is in a better position because of them.”
While acknowledging that some residents are wary of increased military presence, Ayuyu said today’s armed forces operate differently than they did in the past.
“The military today is more environmentally conscious. They conduct environmental studies before any major project. They’re more mindful.”
He said his experience during a recent trip to the Pentagon showed that military leaders are listening to CNMI concerns and willing to collaborate.
“They were extremely happy to hear the CNMI governor say the islands are open to the military. That kind of attitude makes a difference.”
He added that military involvement in local infrastructure projects, such as expanding ports, airports, or launching a regional ferry system, would benefit the entire Marianas region.
Lessons from McDonald’s and business resilience
Ayuyu said this is one of the worst economic periods he’s seen in decades, but he’s avoided layoffs by running lean and efficient.
As a businessman who operates eight McDonald’s restaurants across Saipan and Guam, Ayuyu said he’s weathering the downturn by focusing on efficiency.
“We’ve never laid off anyone. But we don’t replace staff who resign. We manage through attrition and focus on performance.”
Plans to open a third McDonald’s on Saipan—perhaps in San Antonio—are on hold due to the economy, but Ayuyu is continuing his expansion in Guam, where a new location will break ground later this year.
“Guam’s economy has been steadier because of military spending. Over there, I’ve taken over stores from the McDonald’s Corporation and I’m building outside the bases for better accessibility.”
He said local businesses can survive difficult times by understanding their markets and operating lean.
“Don’t open based on hype. Do your homework. Know your market. Have enough resources to last at least a year—because that’s how long it takes to stabilize and build customer trust.”
Advice for CNMI leaders
Ayuyu said the government needs to lead by example—and that means making quick, informed decisions and managing resources wisely.
“Right now, revenues are down but we continue to hire. That’s not sustainable,” he said. “The government needs to manage like a business. Be accountable.”
He suggested regular meetings between the governor and department heads to ensure applications and permits are not left to languish for months.
“Ask them: What are you doing about this permit that’s been sitting for 90 days? What are the holdups? And if they can’t do the job, get someone who can.”
He also advised other business owners to focus on efficiency and productivity. For aspiring entrepreneurs, Ayuyu warned against jumping into ventures without understanding the market.
“Don’t open a business just because a friend says it’s a good idea. Do your homework,” he said. “Make sure you have enough capital to last a year, because it takes time to build a customer base.”
Looking ahead
Despite the bleak economy, Ayuyu remains optimistic that the CNMI can recover—but only if leaders act decisively.
“We need leadership that understands the urgency. Be more aggressive. Welcome investors. Help them succeed. That costs nothing,” he said.
He added that the CNMI should also rethink its approach to tourism.
“We need tourists who spend—not just come in, eat ramen, and sit on the beach. We need quality tourism, not just quantity.”
Ayuyu said business leaders will continue to adapt, but it is now up to the government to help create the conditions for growth.
“The CNMI has potential—but only if we get serious, efficient, and accountable.”
By Mark Rabago
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