Economic Restoration

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The Economic Restoration Summit was held last Tuesday and Wednesday at the World Resort to develop plans for five core industries identified by various sectors at the first Economic Restoration Summit held in 2009. Those industries include aquaculture, agriculture, call centers, eco-tourism, and education tourism.

Muliufi Hannemann gave the keynote address to kick off the event. As the mayor of the City and County of Honolulu since 2005, Mr. Hannemann was well-versed on the key components necessary to develop a strong and sustainable tourism industry. There were many takeaways and valuable lessons he shared that are readily applicable to the CNMI to promote the islands with what Mr. Hannemann calls the five S’s: sun, sand, sea, surf, and spirit of Aloha. The four key components that he addressed focused on public safety, infrastructure & construction, air service, and marketing. Let’s look at each of these components and how they might apply in our situation.

Public Safety. A primary consideration for someone planning a vacation is whether the location is safe and secure. The real or perceived lack of safety will thwart a person’s travel plans to an area. Political unrest, violent crimes, theft, or feeling like one’s been swindled can all leave a person with a bad experience that will be shared with others when the vacation is over. One of Mr. Hannemann’s priorities as mayor was to emphasize strong public safety so that visitors would feel safe walking the sidewalks of Honolulu. This eventually led to the City being named by the FBI as one of America’s safest big cities.

The CNMI should consider the safety and security of our visitors. They should feel safe walking the sidewalks of Garapan, going to tourist locations, or just taking a stroll along Beach Road. There should be better animal control measures to deal with feral dogs that sometimes wander in packs in public places.

Infrastructure & Construction. There are many ways that this can attract or detract visitors from an area. Mr. Hannemann brought wireless Internet service to public areas, city facilities, and parks. He earned national recognition for these accomplishments as well as his efforts to expand Honolulu’s online services. Under his watch the Honolulu Zoo was renovated with more attractions, roads and sidewalks were widened, more trees were planted and the sewage system was upgraded.

Mr. Hannemann also received the American Public Transportation Association’s 2010 Local Distinguished Service Award for his role in Oahu’s rail transit project. He shared with us that the rail transit system had been pursued for 40 years. One of his truisms is: “The longer you delay, the more you’re going to pay.”

Infrastructure also includes sewage and drainage, power and water. This is an area that the CNMI has struggled long to remedy. The recent proposal to raise rates by 44 percent will be the death knell for many businesses now struggling to survive. It may mean reduced services to tourists or simply passing on the higher cost to do business to customers. Improving our infrastructure needs have long been delayed, and now a higher cost will be paid.

Air Service. Hawaii experienced the loss of air service from some carriers. Mr. Hannemann shared that 2007 to 2009 were difficult years, but some of the airlines saw that Hawaii never stopped promoting their islands as a tourist destination, so the airlines were committed to remain. He also said that there should be a balance between hospitality and security. It should be easy to get visa waivers and to transition through an airport and still feel welcomed.

Marketing. Tourism is Hawaii’s core competence and Mr. Hannemann discussed some of the elements that have attracted 7 million tourists to Hawaii each year. They have great golf courses, ongoing sports events such as marathons, triathlons, and the Pro Bowl. Film and television opportunities are available with film studios on the island. The TV series “Lost” and the remake of “Hawaii 5-0” are filmed there. Numerous movies such as Jurassic Park have also been shot on the islands. Agri-tourism is another element, which includes the pineapple festival on Lani, and Maui’s food festival. There are also world-class chefs and great dining experiences. In addition, there are numerous brand marketing opportunities that attract meetings and conventions.

The many marketing activities are funded primarily by a 9.25 percent hotel room tax that is apportioned for marketing, conventions, and the government’s take. Mr. Hannemann encouraged us to take advantage of the Travel Promotion Act which collects $40 million from a portion of the visa waiver fees, along with private sector funds. This money is intended to attract international visitors, and if the CNMI combines their efforts with other regional destinations, he believes we should be able to receive a share of this amount.

There was a lot to think about after Mr. Hannemann’s address, and he left us with 3 P’s to consider: Patience, Partnership, and Promise. We should have Patience as we work to find solutions to our situation. There are no quick fixes, and we will experience set-backs, but we must persevere. It’s important to develop Partnerships with the government, community, businesses and all stakeholders. There needs to be buy-in with the goals that we decide to pursue. We should particularly consider workforce development in our plans to make sure we have the workers and that the jobs are attractive. Lastly, the direction we take should offer a Promise for a better future. This means we should take the long view and consider how this will benefit our children and our children’s children.

This was wise counsel from someone who has demonstrated leadership and commitment over his stewardship. For the CNMI to make sustainable progress in any of the five industries it will also take leadership and commitment to make it happen. Time is the great revelator that will show if we have what it takes.