By Bryan Manabat
Saipan—While the military buildup in the CNMI is a welcome addition to the local economy, it has an ambiguous effect on the civilian landscape, according to PK Phommachanh-Daigo, president and founder of the Marianas Business Network.
Defense investments are “both a significant opportunity and a complex challenge for our local economy,” said Phommachanh-Daigo, who owns Sincerely Saipan Destinations, a wedding and tour company.
The first-phase completion of the Tinian Divert Airfield construction project—an alternative landing site for the U.S. Airforce in case Anderson Air Force Base in Guam is inaccessible,—is expected to be completed by October 2025.
“We can’t rely on fixed bases; we need to have, ideally, lots of options, lots of opportunities to be flexible and move around the theater,” Lt. Gen. Laura Lenderman, Pacific Air Force’s deputy commander, said during a meeting with the Saipan Chamber of Commerce last month. “We have a vital interest in our peace and prosperity in this region. Our presence here is really to deter.”
The first-phase construction, which cost $161.8 million, will provide parking aprons for military planes. The second phase cost $221.7 million and focuses on the construction of a cargo pad, a taxiway extension, a maintenance support facility, and fuel tanks among others.
“There are concerns about potential gentrification and a resulting lack of affordable housing, which could drive up rental rates and strain the local community,” Phommachanh-Daigo said.
The housing-shortage scenario in the CNMI is a reality that the neighboring territory of Guam is currently grappling with. With more military personnel expected to arrive this year, Guam’s real estate market is expected to explode.
“There is a fear that the rapid development might erode our unique cultural identity—a comparison is often drawn to what has happened in Hawaii,” Phommachanh-Daigo said, referring to the dilution of the 50th state’s indigenous culture.
But at the end of the day, he added, the military is part of the CNMI’s economic growth. “Their presence can be a crucial factor in sustaining our small businesses and ensuring long-term stability,” he added.
Over the next few years, the U.S. Department of Defense plans to invest close to $800 million in Tinian to build up defense operations.
“Many of our members view this development as a chance to stimulate economic growth, create local jobs and foster entrepreneurship.”
Phommachanh-Daigo said. “The influx of resources and demand could help sustain and even expand local businesses, contributing positively to the gross domestic product of the CNMI.”
Phommachanh-Daigo founded the Marianas Business Network last June to unify small business owners on Saipan and provide them with a venue to share their experiences and challenges.
The network includes small business owners, freelancers, photographers, and “people who do business as a side hustle.” The group encourages and welcomes all who are interested in growing their businesses or expanding their professional networks without paying membership fees.
Besides operating a wedding and tour business, Phommachanh-Daigo is also the principal partner of LaBine & Associates for Asia-Pacific.
When the company asked him to start a partner firm for Asia Pacific countries, he found Saipan to be the perfect place to take that direction. LaBine & Associates is a full-service talent acquisition firm specializing in executive search for various industries, including banking and finance, legal, technology and health care among others.
Phommachanh-Daigo is a Lao refugee born in a Thailand refugee camp that who came to the U.S. in September 1979. He holds dual master’s degrees: one in social work from California State University and an MBA from the University of Phoenix.
“I came here as a tourist in March of 2020, heading to Palau during a layover in Guam, and I decided to do two nights in Saipan and ended up being stuck here because of Covid, and flights incoming and outgoing were halted,”
Phommachanh-Daigo said. “I loved the simple life so much and the people and the beauty of Saipan that I ended up packing up my life in the San Francisco Bay Area and decided to call Saipan home.”
The tourism-dependent CNMI economy has been struggling to recover from the lingering impact of the Covid-19, and Gov. Arnold Palacios relies on military investments as a lifesaver.
While the opportunity from the military buildup also comes with real challenges, Phommachanh-Daigo noted that thoughtful planning and community engagement are key to turning the challenges into a positive and sustainable development for the CNMI.
“By working together, we can create a balanced approach that benefits our economy while preserving the cultural integrity of our islands,” he said.
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