(HANMI) — The Hotel Association of the Northern Mariana Islands reported 31.6% average occupancy rate among 11 member hotels for October 2024, a 37% decrease compared to a year ago in October 2024.
A total of 20,557 of 65,020 available room nights sold during October 2024 compared to 31,603 of 63,248 available rooms sold in October 2023. The average room rate was $119.87 compared to $135.13 last October.
According to HANMI, hotels typically require around 70-80% hotel occupancy to stay in operation.
“As a destination, the Marianas is losing traction at this point, not recovering,” said HANMI Chair Dennis Seo. Jeju Air’s night flights were reduced from twice daily to once from Oct. 26 to Dec. 7, 2024, due to annual flight maintenance.
“Visitor arrivals are still as low as they were in October 2023, every two out of three hotel rooms in HANMI are empty, and our average room rate also took a huge hit in October, dropping 13%,” Seo said. “The U.S. dollar has shown extraordinary strength, intensifying competition with the premier beach resorts in Vietnam, Thailand, and the Philippines, as well as among hotels in Saipan, resulting in a continuous decrease in hotel sales prices. This indicates that the profitability of hotels is declining or that they are operating at a loss. The tourism economy has not bounced back for us.”
October through mid-December is usually a low travel period, but Seo — who just returned from negotiations with Jeju Air in Korea — said even the Christmas and New Year holiday period is lackluster, and hotels are barely hanging on.
“The situation is dire,” he said. “Last year, the holiday vacation was five weeks for students; this year it’s only three. Tourism partners and the Marianas Visitors Authority have negotiated to have 20 charter flights between Saipan and Busan — Korea’s 2nd largest city — between Dec. 20 and Feb. 25, but nothing can replace a strong 2nd or 3rd source market.”
Hotels included in HANMI’s monthly statistical report are Aqua Resort Club, Aquarius Beach Tower, Century Hotel, Coral Ocean Resort, Grandvrio Resort Saipan, Crowne Plaza Resort Saipan, Kensington Hotel Saipan, LaoLao Bay Golf & Resort, Pacific Islands Club Saipan, Saipan World Resort, and Surfrider Resort Hotel.
The Hotel Association of the Northern Mariana Islands was established in 1985 as a professional forum for the hospitality industry of the CNMI.
