By Betty Bai
For Variety
IN the competitive landscape of tropical island destinations, the Commonwealth of the Northern Mariana Islands faces significant disadvantages when compared to powerhouses like the Maldives and Fiji, or even its Pacific neighbor, Palau.
The core differences become clear when looking at growth trajectory, the Chinese visa policy, and value proposition of each destination.
Maldives: Its “one island, one resort” concept delivers unparalleled luxury, privacy, and world-class diving, solidify its status as an aspirational global brand.
Fiji: Successfully combines beautiful beaches with a globally recognized authentic culture and world-class surfing, catering to a wide range of travelers from backpackers to luxury seekers.
Palau: Focuses on a premium, low-volume eco-tourism model centered on its reputation as the world’s best scuba diving destination. Palau charges a premium for its pristine nature, and every activity is essentially a paid tour. It’s a spectacular but intentionally expensive destination, suited to passionate divers and snorkelers who are willing to pay for a once-in-a-lifetime marine experience.
When comparing market positions, the Maldives ranks best overall, leading by a substantial margin in terms of both sheer visitor volume and high-value positioning.
Maldives sets a new global benchmark for island tourism performance by achieving a historic 2,246,516 arrivals, solidifying its dominance as a top-tier luxury destination.
Among these destinations, Palau currently has the fastest-growing tourism industry. While Fiji continues to see modest increases and the Maldives demonstrates steady growth, Palau stands out for its exceptionally high double-digit growth rates, which is especially remarkable for an island nation with a relatively small tourism base. In contrast, the CNMI is facing a significant decline due to its heavy reliance on a single market.
Palau: Rapid growth
According to the Palau Visitors Authority, arrivals surged 42% in the first eight months of 2025 compared to the same period in 2024. Arrivals from Australia more than doubled (+127%), and arrivals from Europe also increased sharply (+75%), reflecting successful efforts to diversify its source markets. The government expects to welcome over 90,000 visitors in 2026.
Fiji: Slow growth
Fiji’s tourism industry is performing solidly with record arrivals of 986,367 in 2025, though this marked only a slight 0.3% increase from 2024. It remains heavily reliant on its traditional markets, Australia and New Zealand, which together account for over 68% of arrivals. The IMF forecasts growth to ease to about 3% in 2025, indicating a plateau is approaching.
Maldives: Steady growth
Visitor numbers are healthy, exceeding 2 million arrivals in 2024 for the first time. Growth in 2025 has been consistent, averaging around 8-9% in the first half of the year. The performance is driven by strong returns from European markets and China.
CNMI: Significant Decline
The industry is struggling, with total arrivals dropping by 32% in FY2025 (from 237,498 in 2024 to 160,640). This is largely due to a 37.3% decrease in arrivals from South Korea, its dominant market, and a near-collapse of the Chinese market. This performance indicates a severe contraction rather than growth.
The bottom line
In many island destinations, tour package prices are often not the primary driver of visitor choice. Instead, factors such as unique natural attractions, perceived safety environmental sustainability, flight connectivity and marketing campaigns tend to matter more.
On-ground cost (mid-range)/ key cost drivers
Fiji $800 – $1,200
Good-value resorts, cheap local food, free beach activities.
CNMI (Saipan) $1,400 – $2,100 Affordable mid-range hotels, cheap tours, no mandatory nature fees.
Palau $1,800 – $3,000
$100 green fee + $50 permit, expensive diving/snorkeling tours.
Maldives $2,500 – $5,000+
Isolated resort pricing, expensive food/boat transfers.
Palau having the most rapid visitor growth, with my refined explanation: Palau’s surge (over 40% growth) was driven not by cheap packages, but by successful diversification of source markets (Australia, Europe), direct flight routes. Similarly, the Maldives’ steady growth relies on luxury positioning, not low prices. Fiji’s modest growth reflects brand loyalty and accessibility. CNMI’s decline stems from over-dependence on a few markets and geopolitical factors, not price competitiveness.
Chinese arrivals
• Maldives ~283,000 (2024) ~14% (China is the #1 market)
Free 30-day visa on arrival
• Fiji ~50,000 (2024)
~5% Free 120-day visa on arrival
• Palau ~19,000 (2025, Jan-Oct)
~33% (China is #1 market)
Free 30-day visa on arrival
• CNMI: Very low Chinese arrivals
EVS-TAP (quasi-visa-free)
CNMI tourism business grim reality
1) Severe Accessibility Crisis: 67% reduction in air seat capacity since 2018, exacerbated by the withdrawal of direct flights from mainland China and instability in the dominant South Korean market.
2) Intense Regional Competition: Neighboring Guam, flooded with cheap flights from Seoul due to airline merger mandates, has created a devastating competitive dynamic for CNMI.
3) Geopolitical Vulnerability: The EVS-TAP program for Chinese tourists is under intense political scrutiny in Washington, D.C. over national security concerns, creating a precarious and uncertain outlook.
4) Lack of Distinct Brand Identity: Unlike the world-famous brand images of the Maldives (ultra-luxury) and Fiji (authentic culture), CNMI struggles with a weaker global brand identity, make it harder to command premium prices.
The Maldives proves that distance and a luxury-only image is no barrier when the visa policy is open and the product is aspirational. With over a quarter-million Chinese visitors a year, the Maldives alone attracts far more than Palau and Fiji combined. Meanwhile, the CNMI, despite being geographically the closest to China of all these destinations, remains locked out of this massive market. The unconditional visa-free access offered by these competitors is a fundamental advantage.
Betty Bai is the editor of Saipan Chinese News.
