The BGR posted during the first half of 2007 totaled $879 million. This year for the same period, data from the Department of Commerce showed, is down to $840.58 million.
Observers said the government should expect the downtrend to continue with fewer Japanese tourists coming and a further slowdown in garment production with only four factories in operation, one of which is scheduled to close next month.
In CY 2007, only 389,261 tourists visited the islands — the lowest in more than a decade or since 1996 when close to 800,000 people toured the Northern Marianas.
As of June, 204,629 tourists had visited the islands.
Japan remains the CNMI’s primary tourism market.
The local travel industry is hoping the addition of more flights from Asiana Airlines to the Saipan route would yield to more tourists.
Dozens of business establishments, including those which pioneered in their industry like Carmen Safeway, have closed due to the continued slump on economic activities on the islands which rely heavily on tourism-dollars to get by.
The cash-strapped government collected only $79.911 in total revenues during the first half of 2008 but it spent $90.3 million — reflecting a deficit of $10.4 million.
Tax collections projected this Fiscal Year 2009, which began on Oct. 1, is also not looking good — below $160 million after prorated financial obligations are deducted.
The Department of Finance recommended the government limits its spending for FY 2009 to $156.7 million.
The House of Representatives and the Senate, which have agreed to create a conference committee to settle their differences on the FY 2009 budget, continue to work on the numbers.
The House is scheduled to hold a session this morning.
