CNMI

Tinian casino to debut in 2020

Tinian in the Commonwealth of Northern Mariana Islands, is scheduled to get a new casino resort early in 2020 as improved transport links open up the potential for tourism on the island.

The long-delayed project, which is owned by China’s Bridge Investment Group and managed by Wyndham Hotels, is now scheduled to open in Q2, 2020. The resort will cover about 40,000 square meters, with 300 hotel rooms. The plans include a 1,800 square meter casino complex, banquet spaces, a wedding chapel, a fitness center, two arcades, and a museum.

Tourism arrivals to Tinian have been hampered by the lack of transport infrastructure, though that is now improving. In September, a new luxury ferry service was announced that will ease transport between Tinian and its larger neighbour Saipan.

The 49.5m Sand Diamond ferry can carry 290 people and more than 30 cars and will begin regular daily sailings by the end of this year.

“The launch of the Sand Diamond will cater to the large demand for Saipan visitors to experience Tinian and all the entertainment options it offers, including the Tinian Casino. Previously the only access to Tinian has been by plane.” said Danny Ewing, Director Of Operations of US-based casino consultants to the project, Clear Management.

The Tinian Casino is the first phase in a master plan for the Wyndham Hotel & Resort, the largest tourism and hospitality investment on the island.

“Wyndham Hotel Group, as the international operator, is excited to see this latest commitment by the owners and developers of the Wyndham Hotel & Resort Tinian,” said Wyndham Senior Vice President Acquisition and Development, David Wray. “The introduction of this luxurious fast ferry service, will open up to the world the treasures of Tinian and the opportunity to experience one of the world’s most beautiful islands.”

Tinian does have an airport and welcomed its first international charter flight in 2018, which is seen as the key to opening the market to a larger volume of tourists. However, with a lack of hotel accommodation on the island there is little incentive for airlines to schedule regular flights.

“By having direct flights to Tinian, it is our hope that Tinian will become a major player in the CNMI tourism industry,” Tinian Mayor Joey Patrick San Nicolas said at the opening. “Granted that we need to open up more rooms for our guests, but the completion of the TIA is a step in the right direction.”

Bridge was scheduled to break ground in 2016 and originally planned to finish by the end of 2018. The project has been delayed by about a year, but it is moving ahead.

Tinian has experienced mixed fortunes with its efforts to develop casino resorts.

Macau-based Alter City Group also had grand plans for a $1.7 billion resort, to be known as the Plumeria Golf and Casino Resort at Nasarino Beach.

However, its casino license was suspended in 2018 after it failed to pay its annual fee and the project has stalled. Under the terms of its license it was scheduled to pay $500,000 for 40 years.

At the time, William Cing, executive director for the Northern Mariana Islands gaming commission, said the company had experienced difficulties raising finance and was seeking further investors. To date there has been no progress.

A third project, the Tinian Dynasty Hotel, has been shuttered since 2015 when it was hit with a $75 million fine by the US Financial Crimes Enforcement Network (FinCEN) for anti-money laundering violations, which it was unable to pay. The U.S. government accused the operator of “willful and egregious” violations of antimoney-laundering rules going back to 2008.

Mega Stars Overseas Ltd., which has management rights over the defunct property, is still looking at an opportunity to re-open the resort, either as a hotel or just a casino, Tinian Mayor Edwin Aldan told a local newspaper in May.

The CNMI has been keen to foster an integrated resorts industry to attract highspending visitors from across Asia to help it balance its budget. Tinian is just 4.5 hours flight from Beijing and offers visa-free access.

However, the islands have been ravaged by major typhoons over recent years, which have further damaged infrastructure and delayed building projects.

Imperial Pacific International has opened its casino, but has repeatedly delayed completion of its resort.

Regulator mulls junket applications

The Commonwealth Casino Commission in the Commonwealth of Northern Mariana Islands is discussing an application for four new junket operators to operate on the island.

They were named as American Bopan, managed by Mingyu Huang: P’Art Corp, with Jun Ho Park as president; Palm Tree Ventures, managed by Jian Hui Jiang and Tropical Sands managed by Zhan Hui Cui. Imperial Pacific International, which is focused on the Asian high-roller market, has so far failed to attract the region’s major junket operators to its property. The resort, which is still far from completion, lacks the hotel rooms and facilities to cater to VIPs, with visitors placed in neighboring hotels and high-end yachts.

In the absence of meaningful junket play, IPI has extended direct credit to its clients, resulting in a spike in impairments.

IPI buys stake in land developer

Imperial Pacific International has entered into a sale and purchase agreement to acquire a 50 percent stake in American Sinopan LLC, a company developing two pieces of land in Saipan. The consideration for the equity stake in the Hong Kong-owned company amounts to US$23.7 million.

Total land area of the two pieces of land is around 129,687 square meters. One of the pieces of land includes 12 villas and a three-story public building under construction on Capitol Hill, the former Heaven II Resort.

The other land is the project site for the Casha resort hotel, which is an under-construction hotel set to have more than 1,700 rooms when completed.

IPI said the acquisition of American Sinopan LLC is in line with the business development strategy and plans of the group.