(MVA) — The Marianas Visitors Authority board of directors has approved a $3.8 million spending plan for Fiscal Year 2026, based on projected hotel occupancy tax or HOT collections and current air service levels. A $6.4 million overall budget was also authorized, contingent on improved revenue projections.
“The $6.4 million budget gives us flexibility, but realistically, we anticipate only $3.8 million in HOT collections unless flight service stabilizes,” said MVA Managing Director Jamika R. Taijeron. “This makes our job more challenging against competing destinations, but we are approaching the situation strategically.”
The Marianas currently receives direct flights from South Korea, Japan, and Guam. However, unfavorable currency exchange rates and airline-related constraints continue to impact the retention and expansion of air service — key drivers of tourism revenue.
The FY 2026 spending plan includes:
• $1.83 million for marketing and promotions, along with signature events such as Hell of The Marianas, Christmas in The Marianas, Rota Marathon, Tinian Hot Pepper Festival, and Taste of The Marianas International Food Festival
• $1.4 million for personnel costs
Remaining funds will support strategic initiatives and essential operations.
MVA’s annual budget is funded almost entirely by HOT and carryover funds from the previous fiscal year, along with a small grant from the Economic Development Authority and a Community Development Block Grant for Disaster Recovery, which concludes in December.
“At this time, management is refining plans to apply our limited funding toward clear objectives,” Taijeron added. “We’re focused on stabilizing and expanding air service, improving the visitor experience while they are in the islands, and strengthening partnerships with tourism stakeholders — both public and private.”
By law, 80% of all HOT collected by the government is allocated to MVA, with the remaining 20% directed to the NMI Retirement Fund. Of MVA’s share, a portion is legally obligated to support specific initiatives, including $175,000 to the municipalities of Saipan, Tinian, and Rota, and 2% to the Office of the Public Auditor.
