“Shipping is definitely one of the biggest issues here. Just to give you an example of something I’m currently dealing with at Lucky Two. One of the larger refrigeration units is broken, and I’m trying to replace it. I was able to locate new refrigerators on Guam. However, I don’t have a way to get them from Guam to Rota, and it’s actually been recommended that I ship it to Saipan from Guam and then to Rota. So that definitely increases expenses, makes things very difficult. So shipping is definitely an issue out here,” he said.
Rota’s economy is stunted. KUAM News sat down with the Rota Chamber of Commerce who shared their economic frustrations. Chamber president Steven McCoy helps manage a restaurant, hotel, and stores with his wife Jackie Manglona.
Juan Pan Guerrero shares that concern. After moving from Saipan, the former lawmaker runs a construction business on Rota and says more needs to be done. He says its been about 6 months since the last major shipment.
“I think our leadership has been sleeping, including the administration and our Rota leaders. They don’t seem to grasp that this is a major, major issue,” he told KUAM News.
Local businesses turn to airlines and smaller commercial boats to get what they need from Guam and Saipan. Dana Calvo helps manage Calvo Enterprises Incorporated, noting, “So with the current smaller commercial boats that we utilize to ship our product for our Sasanhaya service station, it’s a lot of manual labor, and we don’t have an ideal marina set up for 9,000 pounds of goods. So it requires a lot of heavy lifting from the boat to the dock, then the dock to solid ground, from solid ground to the vehicle. And you touch the product three times just to get it to the vehicle and then load it up towards your store. So it’s a lot of manual labor and time-consuming, so we don’t have the ideal marina setup.”
That elaborate process means hiring more people for manual labor, adding to the sticker shock on the shelf. The Chamber also welcomes proposed legislation to create a One Stop Shop Business License and Permitting Center.
McCoy said, “I just think it would make things a lot easier and more efficient if people on Rota couldn’t make the decision for their department versus waiting for a response from Saipan because Saipan obviously they’re going to, you know, they have their own stuff they need to approve and then Rota too. So I think, you know, the one stop would be nice to have somebody on the island that can make these approvals for different departments and different licenses…a lot of times you can go around and the business licenses might be expired or permits might be expired on the board. But they’ve already been applied for.
“They’ve already been inspected. We’re just waiting for the updated paperwork. And there’s been times when I’ve gotten the license or like, for instance, alcohol and tobacco, the one that we had expired in 2020, I didn’t get another license until 2023. I paid for them and we did all the requirements, but I didn’t receive them. So, you know, somebody on Rota could make that decision.”
It’s a burden for businesses already feeling isolated because they’re not on Saipan. With proposed tax and fee hikes, local businesses just want the government to create an environment where they can thrive and survive.
“Some of our members of the legislature think that because we don’t pay tax as much as they do in Saipan, we have to forget about Rota and Tinian. That’s a misconception. The only way for Rota to be able to pay more is when, if the central government comes in and improve our situation, not regressive,” said Guerrero.
“Right now it’s we see people leaving island. We need, we need to reactivate something. There’s something there’s an element that would induce economic development that is missing. And a lot of this element has to come from the administration. A lot of this element has to come from our elected leaders, not just from Rota, but CNMI-wide.
The issues are only worsened by a lack of tourists, laborers, and investment interest.
Manglona said, “The government doesn’t make it easy for businesses to even start. Like there’s so many red flags to starting new business and just all the taxes and fees. And I just I feel like they should be reconsidered and it should be more enticing for businesses to open up, especially here on Rota, because you see so many businesses that have closed down throughout the years because it’s just not worth it.”
View the article: https://www.kuam.com/story/50326494/what-is-the-cost-of-doing-business-on-rotaand-is-it-worth-it
