The Commonwealth Ports Authority (CPA) is reported to be considering a duty free tender on the Pacific island of Saipan, after earlier indications had suggested DFS Saipan’s existing contract might be routinely extended.

 

However, the local report also notes that any decision on a new contract will depend on a pending bill in the CNMI Legislature. This is a reference to a bill tabled by Senate President Victor Hocog which apparently relates to the definition of a master concession and whether this could result in the separation of master concession agreements for the airports and seaports on Saipan, Tinian and Rota.

 

This news was reported in today’s ‘Marianas Variety’ which is a leading newspaper in Micronesia and the only major publication distributed in Saipan. [Click here for the report: http://www.mvariety.com/cnmi/cnmi-news/local/80362-cpa-to-issue-rfp-for-duty-free-retail-concession-at-saipan-airport].

 

Within its detailed coverage of yesterday’s Board Meeting of the CPA, the newspaper says that the port authority’s officers voted by four to two in favour of holding an open RFP.

 

This is against a background where it also reports that three organisations, including Lotte Duty Free, Chinese Strategic Holdings and Mega Stars Overseas are all said to have indicated that they might be interested in bidding.

 

[Lotte already operates the airport duty free concession on the neighbouring island of Guam where DFS also has a long-established downtown T Galleria operation-Ed].

 

 

This latest development follows TRBusiness’ earlier report in August where international casino operator ‘Best Sunshine’ reached an agreement with DFS last July to set up temporary operations on the ground floor of its DFS T Galleria in Beach Road, Garapan, while Best Sunshine builds its new resort complex. [See details: http://www.trbusiness.com/regional-news/asia-pacific/saipan-and-dfs-gamble-on-chinese-arrivals/79102]

 

The casino operator has already poured millions of dollars into the location and is now engaged with phase one of its major project, which involves the construction of its initial five-star Casino Hotel, which it hopes to complete and open by December 2016. It is ultimately hoping to attract more than 2.2m Chinese tourists to the US Commonwealth of Saipan.

 

Meanwhile, the newspaper report quotes multiple positive comments at the meeting about DFS Saipan’s contributions over many years and also in earlier discussions related to this concession.

 

DFS began operations on the island of Saipan back in 1976 and has been an important business in the small local community ever since. As just one example, it was typically very hands on when Typhoon Souder smashed into the Pacific island on August 2 this year, causing more than $20m-worth of damage and making several locals homeless amongst the small 48,000 resident population.

 

Besides contributing money and resources itself, DFS also created its own appeal fund for its staff who were affected and raised nearly $92,000 in just one month from individuals all around the world. These funds are now being managed by DFS Saipan senior management to assist its needy Saipan colleagues.