Written by Where Is Saipan And Why Does It Want A Casino?
It’s an interesting little news story this and one which should be followed closely by industry watchers. The main thrust of the story concerns whether a tiny Pacific Island nation can turn around its ailing economy through regulated casino gaming.
The island nation we are talking about here is Saipan. If you don’t know where that is you’re almost certainly not alone. It’s the largest island in the United States Commonwealth of the Northern Marianas Islands, some distance to the West of the Philippines and an equal distance to the South of Korea. The island has a population of around 48,000.
Saipan
It’s a actually a federal United States territory, acquired during and after the second world war from the Japanese following ferocious battles. Recent decades have ensured a relatively lucrative garment manufacturing industry but with the emergence of cheap competition from other regional countries, the garment industry has all but expired. Tourism represents one bright spot but it too has been dwindling in recent years.
Hence the call for the development of a casino industry on the island. To the North, Saipan is aware of Macau which has been hugely successful in attracting Chinese tourists to it’s glitzy casino. Singapore to the West has also showed it can be done. Even less developed nations such as Cambodia and Vietnam have fledgling casino industries which add to tourist revenue.
Saipan must be careful though, says Ben Lee of Macau-based IGamiX Management & Consulting Ltd, a senior partner asked to take a look at Saipan. His message is to start slowly, don’t try and tempt the likes of China Sands or Wynn Resorts with the promise of vast revenues – they won’t be interested. Rather, open the bidding to smaller companies and make the minimum investment amounts realistic.
Saipan’s first hurdle to clear though is the local population, who have twice rejected plans for casino development. As the economy further weakens, those who voted against it previously may well change their minds in the future.
Iowa has become the second – although there are conditions attached. Online poker appears to have been the main sticking point and the state will now undertake a study to investigate the its pros and cons. This will be completed by December 2011.