Rota registered 25,784 visitors last month compared to 20,467 in October 2009.
Arrivals from Japan rose 31 percent to 11,279 visitors, largely due to the addition of a third daily flight from Narita compared to October 2009, but still 31 percent lower than October 2008. This reflects the negative impact of the suspension of direct flights from Osaka and Nagoya.
“The percentage gain in October is most welcomed, but it’s important to remember that this increase is compared to October 2009, which was an extraordinarily low arrivals month for the NMI,” said MVA Managing Director Perry Tenorio. “We still must bring Nagoya and Osaka flights back into operation year-round, to secure a much-needed boost to our tourism economy.”
In October 2008 when flights from Nagoya and Osaka were operating year-round, the NMI had 16,193 total arrivals from Japan.
October to mid-December is considered a “death valley” period for travel, and flights from Nagoya and Osaka have been temporarily suspended due to season demand.
MVA noted that this flight suspension trend began last year, and the suspended flights are not expected to resume until the holiday season. Meanwhile, Delta Airlines has announced plans to reroute four flights a week from Saipan to Palau beginning next month.
As a result of these flight changes from the NMI’s primary tourism market, MVA has been petitioning to secure additional funding needed to ensure that the Nagoya and Osaka daily flights are able to operate on a year-round basis.
Arrivals from the primary market of Korea posted another month of significant gain at 8,681, jumping 80 percent in October 2010 over October last year and bringing Korea arrivals back to the levels last seen in October 2008.
Korean arrivals have been consistently higher since December 2009, reflecting Korea’s recovery from the global economic crisis and the continued growth of this key market for the Northern Marianas.
The secondary market of China saw 3,207 arrivals in October, a 17 percent decrease over the same month last year. The number of air seats from China also decreased in October. Charter flights from Shanghai operated in both October 2009 and October 2010. However charter flights from Guangzhou in October 2009 were suspended during October 2010. October 2009 also saw two charter flights from Beijing.
Arrivals from most other markets were down, including a 3 percent decrease from Russia to 367 visitors.
Due to delays in budgetary allotments, MVA has been forced to temporarily suspend a number of promotional activities in Japan and Korea and to prioritize the payment of outstanding liabilities to travel trade partners waiting to be paid for services, including hotels, tour agencies, and marketing partners.
Having received only 46 percent of its $6.1-million budget allocated FY 2010, MVA now owes vendors and tourism partners nearly $3 million in liabilities and is not able to launch anything other than simple baseline marketing programs which do not require significant expenditure of budget.
“While our partners and vendors have been extremely patient with us regarding making payments, the reality is, many can no longer afford to extend credit to MVA or accept new purchase orders,” said Tenorio. “The Northern Marianas’ relies heavily on its tourism partners and vendors for the success of its joint promotions, media and travel agent familiarization tours, special events on-island, security at visitor sites, and much more. As soon as we make good on existing debts, they will continue working with us on plans for the new fiscal year.”
The annual Christmas in the Marianas celebration has been suspended for this year. Other annual signature events in 2011 may also be affected, including major athletic events supported by MVA.
“Given the government’s cash flow difficulties, we are extremely grateful for allotments received to date. We know this is a difficult decision to make, given the many needs of our government,” said Tenorio. “Tourism is the most immediate means to improving the economy. We look forward to restoring our credibility with local and international partners and getting back to full promotions.”
MVA is budgeted to receive $6.45 million in FY 2011.
