THE Marianas Visitors Authority is proposing a $12.3 million budget in fiscal year 2025, the largest portion of which will be used to promote the CNMI.
In FY 2024, the Legislature appropriated $6.4 million for MVA, whose primary funding source is the hotel occupancy tax.
On Friday, MVA Managing Director Christopher Concepcion, acting MVA Board Chair Gloria Cavanagh, other board members and other officials appeared before the House Ways and Means Committee for a budget hearing.
Concepcion said, “As always, the marketing and promotion of the Marianas comprises the largest percentage of our expenditures.”
He said tourism arrivals are still lower than the pre-Covid-19 pandemic levels, but the South Korean market is recovering.
Japan is the other market where MVA is promoting the CNMI, but Concepcion said without a “strong” third market “it is very challenging” especially for the private sector to recover. He noted the looming closure of Hyatt Regency Saipan and Asiana Airlines’ local office.
Of the $12.3 million budget that MVA is proposing, Concepcion said $7.3 million will be spent on marketing. The rest will be for personnel, $1.6 million; destination enhancement, $1.3 million; and other operating expenses, $1 million.
He said their budget proposal requires local appropriation in addition to the hotel occupancy tax collections.
But he said their $12.3 million budget request is “very low” compared to competitors like the Guam Visitors Bureau, which is requesting the Guam Legislature $35 million for FY 2025.
As in his FY 2024 budget submission, Gov. Arnold I. Palacios has proposed a dollar for MVA. Variety was told that this means he is leaving it up to the Legislature to decide on MVA’s funding level.
In his presentation, Concepcion said prior to Super Typhoon Yutu, MVA received $15.7 million in FY 2018, and prior to the Covid-19 pandemic, MVA’s FY 2019 budget was $14 million. At the onset of the pandemic in FY 2020, however, MVA’s budget dropped to $8.5 million then plummeted to $2.1 million in FY 2021.
But Concepcion thanked the Department of Finance for timely remitting hotel occupancy tax collections to MVA.
He said MVA also received a federal Community Development Block Grant specifically for approved marketing programs. Most of the funds were spent on off-shore offices in Korea, Concepcion said. However, this federal funding will expire on Dec. 31, 2024, “and we have requested for an extension.”
He said MVA is also a recipient of a U.S. Commerce Economic Development Grant, which can be used for destination enhancement projects in Marpi.
Concepcion said MVA’s $12.3 million funding request “is a conservative figure, and we are confident we can work with it.”
Cavanagh, for her part, said MVA is the agency that “works for our economy.” She thanked the committee for giving them an opportunity to present their budget request and the state of CNMI tourism.
Present in the budget hearing were House Ways and Means Committee Chairman Ralph N. Yumul, Reps. Blas Jonathan Attao, John Paul Sablan, Joseph Flores, Marissa Flores, Roman Benavente, Vincent S. Aldan and Julie Ogo.
