(MVA) — Visitor arrivals to the CNMI from its primary source market — Japan — plummeted by 28 percent in April 2007 compared to the same period last year.
A total of 14,445 Japanese visitors entered the commonwealth last month as compared to 20,184 in April 2006.
These are the lowest arrival numbers for a single month from Japan since April 1989 when arrivals were 14,286.
The continued decline is a direct reflection of reduced air service out of the Japan market.
Japan Airlines discontinued its daily service to the CNMI in 2005 and Northwest Airlines discontinued daily service from Osaka in 2006.
Most recently, Northwest Airlines announced the discontinuation of its nighttime flights out of Narita as well as a reduced seat capacity due to a change of aircraft that will take place in September.
Absent the introduction of additional air seats and not taking into consideration seasonal charters, MVA estimates the maximum number of air seats from Japan for FY 2008 will be 175,200.
With a load factor of 86 percent, the CNMI can expect approximately 150,672 visitors next year or an average of 12,556 visitors a month.
The last time the CNMI saw this level of arrivals from Japan was in FY 1986.
Through the end of April in fiscal year 2007, Japan arrivals total 120,681 or 15 percent less than in 2006. The loss of air seats from Japan continues to impact the CNMI on many levels.
Since the termination of the Osaka/Saipan service on October 28, 2006, and Narita night-time service beginning in April 2007, the CNMI has lost approximately 38,289 seats or approximately 31,767 visitors as of the end of April.
What this means is that the CNMI has lost approximately $21.6 million in on-island expenditures and approximately $7.8 million in tax revenues. It is estimated that each Japanese visitor spends about $680 on island and contributes about $245 in tax revenue.
“These are critical times for the CNMI” says MVA acting Chairwwoman Marian Aldan-Pierce. “Tourism is now the number one source of income for our islands and unless we get additional air service out of Japan immediately, we are likely to see businesses continuing to close as well as reduced work hours and potential reductions in force throughout businesses on our islands. It has been 21 years since we have seen Japan arrivals this low and it is obviously affecting the entire business community as well as the CNMI government.”
Korea did show another month of growth as arrivals increased by 6% for a total of 6,196 Korean visitors in April.
Russia also showed strong growth due to the DalAvia Airlines charter flight during the month of April.