10-12-07

Hi friends, this is Harry Blalock; General Manager for radio stations KZMI & KCNM. It's that time once again to take a look at the issues of the week, and to offer some Food For Thought.

This past Wednesday the Governor had his special military advisor, retired 3-star Lt. General W.C. Chip Gregson and Bob Jones, the chairman for the Strategic Economic Development Council join him in the studio for Island Issues. They were here to talk about the potential benefit to the CNMI of the military build up on Guam. General Gregson talked about the planned firing range for Tinian and the need to have people available with the required skills to be able to operate and maintain this state of the art facility. They are looking at establishing some community college classes that would train people to be technicians, operators and equipment repair personnel for the range. I'm assuming that since this is going to be a military firing range owned and operated by the U.S. government, that the jobs would all be federal jobs for those working there. So as soon as these classes start being offered, if I were a young person here looking for a great job opportunity I would enroll in those classes so I was ready when this range opens in 2-3 years.

But aside from the firing range, it sounds like the main way that the CNMI can expect to benefit from the military build up on Guam is through tourism. They say that we should prepare to have a big influx of military personnel and their families coming over to get away from Guam for a few days. I talked about some of the obstacles I saw to this a few weeks ago, namely the expensive flights between Saipan and Guam, the lack of recreational businesses that cater to English speakers, and the lack of lower cost accommodation options.

Let's take a look at what a typical getaway to Saipan would cost for a military person right now. I think the typical plane ticket on Cape Air is a little over $200 for a round trip. There are some hotels where they could stay for less than $100 a night, but most in that range do not have pools, spa facilities or much to offer by way of recreation, and they're not that much less than $100. So for a 2 night get away, we're now up to $400. $50 a day for food and drinks is certainly in the ballpark per person, that brings us up to $500. If they want to go diving that is going to cost them in the area of $100 per day by the time they rent equipment and pay one of the shops to take them out, so we're now up to $700. If they want to buy some t-shirts or souvenirs to take back with them you can throw in another $100, which brings us up to $800. And that is not by any stretch a luxury vacation - that would be a very strict budget vacation on Saipan. If it is a family of 4 that is looking to come over for a vacation, you can increase that cost by 2-3 times as much.

We need to remember that our military personnel typically aren't paid very high salaries, so they need to make their money stretch as far as possible. Yes, they can splurge occasionally, but they need to budget out their money and get the most bang for their buck. When they are looking at R&R options, I'm sure that the cost of the trip, accommodations and extras comes into play. There are many other options in this area where their money can go much farther. However the military is not allowed to travel to certain countries because of security concerns, so that does limit their options somewhat.

If the CNMI is to reap any substantial benefit from military tourism we need to figure out how to make this an easy, affordable destination that offers everything they are looking for. One of the keys is having affordable air travel between the islands. It is nothing short of highway robbery when an airline charges over $200 to go between Saipan and Guam. The airlines in Hawaii manage to offer flights for less than $50 per person for round trip tickets between the Hawaiian Islands. Is it really that much more expensive to do business here that they have to charge us 4 times more? Or are we just being taken advantage of once again by an airline that has all but abandoned us? Continental Micronesia drove out the competition and then raised their rates through the roof. They have certainly done nothing to deserve our loyalty or thanks at this point; it's time to start looking at other options.

There is a group that is looking at creating a regional airline that would have their hub on Saipan. This group is comprised of some of the bigger businessmen in the area, and they are looking at teaming up with an already established airline. The government has indicated they are willing to also make an investment into such a venture and to do whatever it takes to make such a thing a reality. I believe this is the first and most important step in making military tourism a reality for the CNMI. The cost of the trip between here and Guam needs to be affordable, and it hasn't been for a very long time.

I have mentioned before that I really think there will be a market for Bed & Breakfasts or home stay options in the CNMI. The military visitors we will be getting are Americans, and they tend to think differently than our visitors from Japan or Korea. They are used to the Bed & Breakfast concept in the states, and they are also used to lower cost alternative hotels. I think many of them would enjoy the personal interaction that they could get with families and other guests in a Bed & Breakfast situation, especially since many of them are away from their families in the military. Again, this is the sort of thing that if you're interested in doing, you need to start planning for it now and getting things ready.

I believe that the military is already trying to encourage the service men and women to take a trip to Saipan for some R&R. Stars & Stripes, which is the military's newspaper, has contacted me about writing stories and providing pictures for their Guam newspaper. They want me to write about things that they think will entice the military personnel to take a trip over here. My 3rd story will be in the newspaper coming out this Sunday, and I talk about the world-class nudibranch diving available in the Grotto. They want stories about golfing on Saipan, the Thursday night street market, the various races we have here and any event that someone might want to come over for. This is a great opportunity to get some free advertising for our islands and our events. And it is a great sign that the military is actually committed to helping us in this respect. I believe that military tourism will mean quite a few new business opportunities; it's just a matter of finding your niche and figuring out how you can be a part of it. I believe that we will need some more quality restaurants that offer affordable meals. I believe that there may be opportunities for new recreational businesses on Saipan that we haven't seen here yet. The key will be not biting off too much too quickly; whatever you do it needs to be sustainable and practical.

We have time to properly prepare for the military build up on Guam, and to help create the CNMI we want to offer to them for their recreational activities. So what will we do with the next 2 years? Will we spend that time productively, planning and getting things ready? Or will we just wait and see what happens, and then wonder why they don't come here if we don't do anything to make this a more attractive destination? It's going to take some thinking, some planning, some hard work and some investment. It's all a part of figuring out what the CNMI of the future should look like, and then actually making it happen. What part will you play in the future CNMI and what are you doing right now to make it a reality?

I'm Harry Blalock, thanking you once again for giving me a generous slice of your valuable time, and allowing me to share my Food For Thought.

For more thoughts, pictures and observations, feel free to visit my personal blog at www.saipandiver.blogspot.com