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01/22/25 - The administration of CNMI Gov. Arnold I. Palacios is bracing itself for low tourism numbers this year as it anticipates charter flights to slow down and a major retail conglomerate establishment to close down.
In the fiscal year 2025 revised revenue forecast submitted to the Legislature, Department of Finance acting secretary Bernadita C. Palacios noted the alarming scenarios the CNMI economy is facing this fiscal year.
“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. 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,” she said.
As a result, acting secretary 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.
Rumors are rampant in the community that T Galleria, which is owned by the world’s leading luxury travel retailer DFS Group, is closing shop this year.
It has come to the point that Gov. Arnold I. Palacios himself addressed the rumor during a recent economic forum event.
“We had a conversation with DFS corporate management and we've made an agreement that they're going to drive that initial news. And then we can all come together and jointly talk about it. So I'll give them the respect that I committed to...We asked them about it and they said, ‘give us the time to put things in order before we break’ [so] they're going to be the ones that break [the news],” he told the media.
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Story by Mark Rabago
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