A study performed by KPMG Peat Marwick in 1993 attempted to clarify the differences in various reports submitted to this oversight committee. Our report is similar to the 1993 KPMG report. The economy of the CNMI experienced rapid growth from 1987 to 1991. Concerns about land ownership in the CNMI, coupled with a slowdown in Japan's economy and tightening of credit by Japanese banks contributed to a general slowdown in the CNMI beginning in mid-l991 and lasting through 1994. This growth was due primarily to three industries - tourism, construction, and garment manufacturing.
Tourism remains as a major contributor to local government revenues.
There are roughly 3,800 hotel rooms on the island at present. During the past six years, very few rooms have been added to the supply. Many projects have remained in the planning stages for several years. Flights have been scaled back because of the limited number of available rooms. The CNMI is largely dependent on imported workers.