Basa, Covenant-Saipan, told Variety yesterday that he will meet with administration officials this week to discuss an expected reduction in the $120 million projected revenue for FY 2012.
Basa said the House wants to know the amount of collections that can be realistically expected in light of the tragedy that happened in Japan.
Basa said this is a legitimate concern for CNMI officials.
“We need to look at it seriously and consider that. It will reduce our collections and government revenue,” he added.
Palacios, R-Saipan and chairman of the House Committee on Natural Resources, said it may take Japan more than a couple of years before it can get back on its feet.
He does not think that a lot of Japanese will consider traveling during this period of time.
“Their concern right now is getting their lives together specially those who were affected by the disaster. Even those who were not affected will try to help their own people first before vacationing in places like the NMI,” Palacios said.
The government’s budget projection, he noted, is bad already and now “there will be more problems that we have to face.”
Palacios at the same time said the CNMI should welcome any evacuees from Japan and provide assistance to those affected by the catastrophe.
Villagomez, Covenant-Saipan and chairman of House Committee on Commerce and Tourism, said the FY 2012 budget “is definitely something to look into.”
He said even before the earthquake and tsunami hit Japan, he already expected a budget figure lower than what the administration will submit to the Legislature due to a lot of liabilities and other obligations the CNMI government is facing.
Now that the disaster has happened, he said, “we really have to reduce the projection.”
More cancelled flights
As of yesterday morning, two of the major tour agencies on Saipan received more notices of cancelation of flights from Japan.
Highest International Standard told Variety that 300 Japanese tourists scheduled to arrive this month called to cancel their trip.
Takehito Oshima, HIS travel agent, said most of these travelers are from Narita. Some are from Nagoya and Osaka.
These do not include hundreds more who are also scheduled to visit the CNMI but won’t make it because they have lost access to the airports in Japan.
Oshima said they are expecting more cancelation of flights in the following days.
Pacific Development Inc. has been receiving cancelation notices every day since the earthquake and tsunami occurred.
PDI said 120 tourists scheduled to arrive here in March have canceled their flights. Most of them are from Narita.
