Senate Fiscal Affairs Committee Chair Donald Manglona presides over a hearing on the proposed fiscal year 2025 budget for the Marianas Visitors Authority on Wednesday in the Senate chamber.
THE Marianas Visitors Authority has undertaken several activities to tap “another strong source market” in tourism, MVA Managing Director Christopher Concepcion told the Senate Committee on Fiscal Affairs during a budget hearing on Wednesday.
In his presentation, Concepcion said MVA has “undertaken several activities in Hong Kong, Taiwan, Australia, and Singapore. These include meetings with the countries’ government officials and tour agency representatives, [and attending] trade shows, road shows and expos so we can meet with the traveling public and dialogue with regional airlines and travel agencies about expanding travel to the CNMI.”
Concepcion said, “We will continue this effort.” But once committed partners are identified, he added, “it will take a considerable amount of time and millions of dollars to successfully open a new market not already familiar with our product.”
For fiscal year 2025, MVA is requesting a budget of $12.389 million. Gov. Arnold I. Palacios, however, proposed $4.4 million only. MVA’s primary source of funding is the hotel occupancy tax collection.
Japan market
Regarding the Japan tourism market, Concepcion said Japanese outbound travel is about half of what it was five years ago.
He said Japan’s economy is stagnant, with overseas travel slowly but steadily recovering. However, compared to what the market was in 2019 before the pandemic, he said, “there is still a long way to go.”
“I believe you are familiar with the challenge: the current exchange rate, and a trend toward more domestic travel. One bit of good news is that MVA’s request to improve United Airlines’ flight schedule was finally approved and it started in May, making package prices to Saipan cheaper for more daytime hours in the destination. That’s a significant help,” Concepcion said.
In addition, “We have just launched a new social media campaign in Japan created in partnership with UltraSuperNew, a creative ad agency with global brand clients including Visa, Red Bull, and Nike.”
He said the “Shh! Between You & I” campaign will elevate awareness about the CNMI among a younger generation that doesn’t have a historic connection with the islands.
“It will connect on an emotional level, which is what today’s traveler is looking for … meaningful travel. And it will differentiate us among mainstream destinations with our natural beauty, our culture and our warmth as a people,” Concepcion said.
Japan used to be the CNMI’s primary tourism market, but since 2013, arrivals from the Asian country has steadily declined from 141,747 in that year to 17,121 in 2019 before the pandemic. In FY 2023, Japan arrivals totaled 7,373. In the current fiscal year, as of May 2024, there had been 10,011 visitors from Japan.
In 2019, prior to the pandemic, South Korea, with 249,211 arrivals, and China, with 185,526 arrivals, were the CNMI’s top two tourism markets.
The Korean market has been steadily recovering, but not the China market. Since 2020, there had been no direct flights to Saipan from mainland China.
MVA Board Chair Gloria Cavanagh told the Senate committee on Wednesday that “there is a big hole once filled by China. Direct flights from mainland China have not resumed since the pandemic and we have only two weekly flights from Hong Kong. This is due in large part to the suspension of Annex VI.”
Annex VI is a provision of the U.S.-China Air Transport Agreement that exempts the CNMI from the flight frequency limitations between the U.S. and China.
Citing the CNMI’s economic downturn, U.S. Congressman Gregorio Kilili Camacho Sablan and Senate President Edith Deleon Guerrero have asked the U.S. Department of Transportation to reinstate Annex VI.
