THE projected eight-percent increase in revenues for fiscal year 2003 is expected to be generated by the tourism sector, according to Lt. Gov. Diego T. Benavente.
“Because of the upward trend in the tourism industry that we are seeing right now, the administration thinks that the anticipated increase in revenue would come from that industry,” said Benavente in an interview yesterday.
The Department of Finance indicated that the tourism sector may bounce back to its fiscal year 2001 levels.
The rebound however will not include the garment industry, which will continue to run 15-percent below its FY2001 output, acting Finance Secretary Frank B. Villanueva said.
The anticipated recovery of the tourism industry and other commonwealth economic revenue sources was determined following a government review of the current revenue collection trends.
Villanueva, in his report to Gov. Juan N. Babauta on the FY 2003 estimated revenue, said that anticipated operating resources will have a “substantial increase” of 8.76 percent from the current levels.
“While it appears to be a substantial increase, it is still nearly $10 million below FY 2001 level actual revenue collections,” Villanueva said, though.
Meantime, Benavente said the increase in tourism-related activities will be triggered by the continuously expanding Korean market, the proposed direct tourist flights from mainland China and the stable arrival of tourists from Japan.
Data from the Marianas Visitors Authority show a marked increase of tourist arrivals from Korea —from 2,674 last October 2001 to 8,175 in February.
The number of tourists from Japan also increased by almost 85 percent or from 15,129 to 27,977 during the same period.
Benavente said the administration is now exerting extra effort on bringing in more tourists to the CNMI.
He said the administration is optimistic that with “the confidence being established here”, it would also “entice developers to start coming in.”
“I think it’s obvious that things are moving in with a lot more people playing golf and a lot more people in hotels and on the streets. That’s what we need to generate additional revenue and we are positive that it will materialize as the administration remains committed in making the tourism industry, the number one industry,” he said.
