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07/09/2025 - With the tourism industry still struggling post the COVID-19 pandemic, the business community on Saipan is getting a sort of reprieve in the next month or so with 500 U.S. personnel on-island for the 2025 Resolute Force Pacific, or REFORPAC, military training exercises.
The first batch of U.S. military personnel was seen checking in at Crowne Plaza Resort Saipan on July 7 and 8 for the July 7-Aug. 8 war games on Saipan. Aside from the capital island of the CNMI, REFORPAC personnel will also be training on Rota from July 8 to 31 and on Tinian from July 9 to July 31, where 25 and 115 personnel are expected, respectively.
This early, the local business community is already embracing the 640 total troops visiting the islands for REFORPAC, which Inside Defense said is the U.S. Air Force’s largest multi-combatant command exercise set for the Indo-Pacific.
AC Pacific LLC/I Love Saipan Stores & Star Sands Plaza president/owner Alex Youn welcomes the anticipated boost military training would bring to the Commonwealth.
“In the past, we've observed an approximately 10% increase in sales during weekends when military members have time off for military visits. We anticipate similar increases during the weekends of this month's exercises. They usually buy lots of alcohol-related products, food products, and T-shirts. Not much other souvenirs,” he said.
For his part, McDonald’s Saipan and Guam owner/operator and president Jose “Joe” Ayuyu Sr. said that aside from the CNMI fulfilling its duty to defend the security of the United States, the military exercises will also provide revenue for struggling local businesses.
“It’s our contribution to our nation’s defense preparation as part of the American family. The effect will be many military personnel’s presence using some of our facilities and also giving us a shot in the arm in terms of personnel spending money in our islands, especially at a time when our islands are financially challenged. For many of the men and women participating, it will be their first time in our islands and hopefully in the future they will return as visitors or tourists,” he said.
Ayuyu added that many U.S. senators and representatives are also becoming more aware of the CNMI’s contribution to the nation’s security, and he hopes they will be more sympathetic to the islands’ needs and help further develop the local economy.
Herman’s Modern Bakery general manager Joseph Lee Pan Guerrero agreed with Youn and Ayuyu’s assessments, saying that Saipan’s restaurants, bars, and hotels could see a mark improvement in their bottom lines.
“These businesses will see a slight increase in traffic with military personnel when they are not actively in training. Scenic sites will be visited, but won't have data to support that it was visited if [the Marianas Visitors Authority] does not promote.”
As for the oldest bakery in the CNMI, Guerrero said they have seen sporadic traffic stopovers for breakfast and small-scale purchases of sweet treats.
“[I’m] hoping that other businesses will see the same domino effect. Give and take, the bars will see more traffic with the young core as they do the bar-hopping locale. [I’m] crossing fingers that they visit other small businesses that provide sports entertainment activities. Otherwise, it would be a small-scale spending on recreational and in the relaxation aspect,” he said.
Doyi Kim, P&A Corp. vice president, also sees REFORPAC as eventually leading to a boom for local businesses like restaurants, bars, and stores, and this in turn would trickle down to other companies.
“If those restaurants and bars pick up, it could also boost other industries such as wholesale, rental cars, cleaning services, and more. They would create a domino effect that benefits multiple layers of the local economy. Military training exercises in the CNMI have the potential to generate significant economic stimulation across multiple sectors. Beyond the direct spending by visiting personnel at restaurants, bars, and retail stores, the increased demand creates a secondary boost in wholesale distribution, transportation, and hospitality. If sustained, this trend can strengthen the business ecosystem and contribute to long-term economic resilience in the region. I hope CNMI positions itself as ‘military-friendly’ during the period,” she said.
P&A Corp. operates several restaurants and a laundromat in the southern part of Saipan.
Emir Abuan, Enterprise/National/Alamo Rent-a-Car regional director for Saipan, Palau, and Cebu, said the company is already reaping the benefits of the over monthlong military training on Saipan.
He said, so far, 87% of their fleet of 120 vehicles have been utilized, and U.S. military personnel seem to prefer SUVs and larger model vehicles like the Toyota Sienna, Hyundai Palisade, and Nissan Armada for their initial nine-day booking.
Curtis Dancoe, owner of Niao's Poke Deli, is also welcoming 500 additional service members participating in the military exercises this July and August.
He said to mark their visit, the newly opened San Jose snack bar that sells Hawaiian poke, cubes of marinated sushi-grade fish tossed over rice and topped with Asian-inspired sauces, will be serving a smoked fish dip made from Swordfish.
Dancoe said this limited dip will be featured this week for the added touch of comfort food for the island’s newest off-island guests.
Earlier, special assistant to the CNMI governor for military affairs Edward Camacho lamented the limited economic benefits trickling down to local businesses from the ongoing military buildup in the region, where the REFORPAC exercises are a part of.
"We're talking about close to $500 million in activity in one year alone," he said. “But the reality is most of those contracts are awarded to off-island companies. So, much of that money leaves the Commonwealth."
Camacho called it a form of "capital flight" that undermines the long-term economic promise of military investment.
"We see the impacts at the surface level—hotels, restaurants, car rentals, and catering companies do get a boost—but those are peanuts compared to what's leaving."
Report by Mark Rabago
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