THE Hotel Association of the Northern Mariana Islands reported 44.6% average occupancy rate among 11 member hotels for August 2024, a 16% decrease compared to 52.8% average occupancy among 11 hotels in August 2023.
A total of 29,024 of 65,013 available room nights sold during August 2024 compared to 34,146 of 64,595 available rooms sold in August 2023. The average room rate was $143.17 compared to $159.34 last August.
With the seasonal suspension of one daily flight starting this month by T’way from the primary source market of Korea and Jeju Air also announcing plans to drop one daily flight until December, HANMI has initiated discussions among all stakeholders to prevent further economic decline.
“While overall arrivals to the Marianas are higher so far this fiscal year compared to last, the last three months have seen a drop in both average occupancy and average room rates compared to 2023,” said HANMI Chairman Dennis Seo. “Our board reached out to Gov. Arnold I. Palacios earlier this month to express our dire concerns, and after a productive discussion with him, we’re optimistic we can reverse this drop-off quickly with the buy-in of all partners.”
Following HANMI’s meeting with the Governor, Seo also held informal meetings with T’way, Jeju Air, and Asiana Airlines in Seoul on Sept. 19.
“With the pledged support of the Commonwealth Ports Authority, the Marianas Visitors Authority, and our member hotels, the airlines appear willing to reconsider their flight suspensions this season. Now it’s a matter of ensuring the verbal agreements reached are formalized,” said Seo. “With fierce international competition, this strong show of support from the Marianas public and private sectors has made a very positive impression on our airline partners, which is good for our partnership in both the short and long term.”
Seo said the repressed Japan economy and unfavorable currency exchange, along with the lack of direct flights from mainland China will continue to stymie economic recovery until conditions change. Seo also urged the full funding of MVA in the new fiscal year beginning Oct. 1, 2024.
“The tourism industry is still struggling, and MVA must remain a budgetary priority,” said Seo. “In 2013 hotel investors of HANMI and the Legislature and the Governor mutually agreed to increase hotel occupancy tax (HOT) from 10% to 15%, provided that MVA would be able to keep its HOT allotment for the continued promotion of the destination. It’s imperative to keep this funding intact for the use of MVA and not siphon off the HOT for other purposes.”
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.
About HANMI
The Hotel Association of the Northern Mariana Islands was established in 1985 as a professional forum for the hospitality industry of The Marianas. HANMI also makes regular charitable donations to support non-profit organizations and tourism-related government projects. HANMI membership is open to all qualified hotels and other loading properties for tourists and affiliated business. Membership applications are available at www.saipanhotels.org/.
