A HOTEL Association of the Northern Mariana Islands report to the Legislature indicates a steady increase in average occupancy rate among its 12 member hotels, from 19.62% in February to 53% in July this year.
In 2019, prior to the pandemic, the average occupancy rate was 80.43%. In 2017, it was 90.89%.
Hotels included in HANMI’s monthly statistical report are Aqua Resort Club, Aquarius Beach Tower, Century Hotel, Grandvrio Resort Saipan, Crowne Plaza Resort, Hyatt Regency Saipan, Kanoa Resort Saipan, Kensington Hotel Saipan, LaoLao Bay Golf & Resort, Saipan World Resort, Surfrider Resort Hotel, and Pacific Islands Club Saipan.
HANMI also reported that from January to July, these hotels generated a total of over $21.4 million in room revenues, for which the CNMI government collected $3.2 million in hotel occupancy tax and stands to collect over $1 million in business gross revenue tax.
Public Law 18-1, as amended by P.L. 19-36, imposes 15% hotel occupancy tax or HOT on the amounts charged on transient occupants of hotel rooms. HOT is separate from the business gross revenue tax and is remitted to the Department of Finance on a monthly basis.
HANMI said its occupancy rate went down to 19.62% in February from 23% in January, but it increased to $27.04% in March; to 31.30% in April; to 36.04% in May; to 46.13% in June; and to 53.84% in July.
Of the 61,351 rooms available, HANMI reported that 14,582 were sold in January of this year compared to 9,715 rooms sold from 45,639 available rooms in January of last year.
From January to July 2023, the total average occupancy rate in the 12 hotels was 33.9%.
The hotel occupancy tax collected based on the hotels’ room revenue was $359,613 in January; $252,068 in February; $340,052 in March; $393,333 in April; $487,665 in May; $574,493 in June; and $812,050 in July.
According to the report, tourists from Korea comprised the largest number of hotel guests with a total average of 63% from January to July while guests from Japan comprised an average of 6.3%. There were zero Chinese hotel guests from January to March. But in April, Chinese visitors comprised 14% of hotel guests. The number then went down to 2% in June and July.
P.L. 19-36 allots 80% of the hotel occupancy tax collection for the Marianas Visitors Authority’s tourism promotion while 20% is allocated for the retirees’ 25% benefit.
In July, the MVA board approved a $12.52 million budget for fiscal year 2024 that includes $5 million in projected hotel and occupancy tax collections.
The Senate and the House of Representatives, through House Concurrent Resolution 23-2, agreed to allot $4.5 million in hotel occupancy tax for the MVA in FY 2024.
