In a report to Gov. Benigno R. Fitial, Finance Secretary Eloy Inos said the CNMI government’s direct tax losses from the pullout will reach only $3.5 million but the economic activities generated from the visit of tens of thousands of Japanese tourists from Osaka to Saipan are significant.
“The visitor industry has not picked up from last year’s less than desirable performance. Recent reports also confirmed that the much coveted route, NWA’s direct Osaka/Saipan route, will be discontinued on March 1, 2009,” Inos told Fitial.
“According to MVA, this route contributes approximately $112 million into the CNMI economy,” Inos added. “Asiana Airlines has plans to launch a direct flight on the same route, but not in the volume or load factor that is significant to offset the loss from NWA’s discontinued service.”
An independent study commissioned by the private sector back in 2005 determined that every Japanese tourist contributed about $1,396.45 in economic activities each time they visited the islands.
More than 2,500 Japanese from Osaka traveled to Saipan every month this year.
