By Gemma Q. Casas
Variety News Staff

THE Marianas Visitors Authority projects the Japanese tourist arrival rate to further decline when fiscal year 2008 starts in September due to Northwest Airlines’ decision to downsize its aircraft servicing the CNMI, which will result in 130 fewer seats per flight to Saipan.
Northwest, the only international airline providing direct service between Japan and Saipan, will use smaller aircraft for its flights to the destination starting September.
The Office of the Governor said this will mean that “visitor arrivals from Japan next fiscal year are anticipated to reach only 150,000 compared to 380,000…prior to the pullout of Japan Airlines from the market.”
The Saipan route lost more than 230,000 seats from Japan when JAL pulled out its 14 flights a week between Tokyo and Saipan on Oct. 26, 2005.
That number translates to more than 180,000 annual potential Japanese visitors lost to the islands.
MVA Chairman Jerry Tan said the loss of more seats from Japan, the main market of the local tourism industry, will have a dramatic impact on the islands’ worsening economic crisis.
“Declining airseat inventory is our biggest problem. We have only 60 percent of the tourist arrivals we had two years ago from Japan. You almost need to declare a state of emergency. Nobody can survive with a 180,000 capacity,” Tan said in a statement.
MVA and the Strategic Economic Development Council — a group of CNMI businesspersons — are urging the Fitial administration to invest additional funding in securing more air seats for the local tourism industry.
MVA requested an $11 million budget for FY 2007 but it got only $6.5 million.
“You cannot afford not to invest in tourism. It’s our lifeline. Now that the garment industry is on the way out, tourism is our only immediate revenue source,” according SEDC co-chairman Bob Jones in a statement. “Advertising works. Promotions works. We realize the government is facing a cash shortfall but without additional funding, our tourism economy will soon be dead.
He did not mention where the cash-strapped government can get additional funding for tourism promotion.