Tourist arrivals have suffered significant drops since 2005 due to global economic downturns, oil price increases and other external forces. Arrivals from Japan, the islands’ largest and most valuable market, have also declined by 62 percent since the same year.
Since tourism is the only industry in the CNMI, the decline has had a widespread and exponential effect on the economies of the three main islands of Saipan, Tinian and Rota.
With an ever-shrinking economy, thousands of jobs have been lost and cost-of-living, as well as fuel prices, have sky-rocketed in this import-driven market. The situation is so bad that budget revenues for the government are dwindling, and reduced work hours and payless paydays have continued for the past 12 months.
The new airline, owned by Tan Holdings, which also owns several hotels, is scheduled to launch its inaugural flight from Japan on July 1, 2012. The airline will utilize two Boeing 737 aircraft and will initially focus on the key Japanese airports of Narita, Nagoya and Osaka.
With this strategy, Saipan Air executives forecast an increase in Japanese tourist arrivals by around 200,000 or 47% annually. They are optimistic that this huge increase in arrivals will bring with it the revival of related tourism businesses and boost the CNMI’s economy to pre-2005 levels.
With the launch of Saipan Air, there is hope to avert total economic collapse.
Tan Holdings president Jerry Tan said: “We are starting to establish the foundation for this local airline as each day goes by. All sectors of the CNMI have suffered. It’s not that the tourists don’t want to come to the CNMI; it’s that there are not enough seats and no stable air service to satisfy their demand. Saipan, Rota and Tinian are always recognized as a beautiful destination for our tourists over the past 35 years.”
He added, “We decided to make this investment to help revive our tourism industry and contribute to the growth of our economy. Stable air service will mean more opportunities for all businesses such as restaurants, mom & pop stores and other establishments, more revenues for government, a restoration of 80 work hours, and more jobs for our people. A healthy tourism industry will ensure full economic recovery for the CNMI.”
