‘CNMI doesn’t have TV ads in Japan’

The CNMI expects to get maximum tourism benefits from Japan yet it lacks a rather basic media advertising tool—a TV commercial in the country to entice the market.

“We don’t have any TV commercial [in Japan],” disclosed Marianas Visitors Authority board chair Jerry Tan in his remarks during the MVA general membership meeting Thursday on Saipan.

Tan said it is one area that the MVA should be doing if it really wants to capture a wider segment of the Japanese market.

The Japanese tourist arrivals in the Northern Marianas dropped sharply this year mainly due to the Japanese Airlines pullout from the Commonwealth. But even before this, the CNMI’s Japan arrivals had been suffering due to downsizing of aircraft (by JAL) as well as a flight termination of Continental Airlines.

As of April this year, Japanese tourist arrivals in the Northern Marianas declined by 28 percent compared with the same month last year. Data showed that visitors from Japan totaled 20,184 last month or 7,746 less than April 2005.

During the first seven months of fiscal year 2006, the total number of visitors reached 254,981 or 18 percent down compared with the same period in FY 2005.

Still, Japan remains the CNMI’s no. 1 market, followed by Korea, and China.

Hawaii, Guam

In comparison, Tan said that Hawaii and Guam are enjoying their edge in Japan through television ads. The board chairman showed two TV ad clips from Hawaii and one from Guam that are airing in Japanese televisions.

The Hawaii’s “Aloha” ad features ukulele artist Jake Shimabukuro while Guam shows off a marine eco-tourism.

“Because we don’t have any—I didn’t find any TV ad for the CNMI—I’m showing you how Hawaii and Guam are doing it Japan. It’s good that we know what other destinations are doing to attract the Japanese market,” said Tan.

Guam Visitor’s Bureau board chairman Dave Tydingco and general manager Gerald Perez, who attended the MVA meeting as guests, expressed support to the MVA.

“There’s only one Marianas,” said Tydingco.

Japan favors Hawaii

MVA data showed that Hawaii ranks third as preferred destinations by Japanese tourists, after China and South Korea.

Guam, meantime, ranks 7th behind China, South Korea, Hawaii, mainland U.S., Thailand, and Hong Kong.

The CNMI does not figure in the top 11 outbound destinations for Japan.

In its report, MVA said Hawaii’s success is due to its “strategic planning and marketing research.”

In 2005, Hawaii posted a 7.2 million tourist arrivals, from a 4-million level in the past five years. During the same year, Guam recorded 1.2 million tourist arrivals, while the CNMI registered 529,557.

CNMI FY 2005 Japan arrivals totaled 376,263; South Korea, 65,049; China/Hong Kong, 35,613; Taiwan, 2,771; Russia, 955; and others, 48, 906.

Japan ad

Tan said the CNMI’s lack of an important TV ad in Japan is attributed to the MVA’s lack of funding. He said that the CNMI pales in comparison with destinations like Hawaii and Guam in terms of promotional funding.

He cited that in 2005, Hawaii’s advertising funding was at $34.7 million while Guam was at $11.1 million.

In 2006, he said that Hawaii’s advertising budget increased to $36.1 million while Guam’s budget rose to $15.7 million.

The CNMI’s advertising funding totaled $3.72 million in 2005, and $3.5 million this year,

“As you can see, our competitors are promoting quite aggressively,” said Tan.

About six or seven years ago, MVA had approved the placement of a television advertisement in selected cities in Japan—Tokyo, Osaka, Nagoya and Fukuoka. The MVA board had then approved a $2.1-million budget for FY 2000 for Dentsu 10, a Tokyo-based advertising company.

It was in the TV ad that Sai-panda mascot, symbolizing the male Japanese traveler created by Dentsu, was introduced.

Based on that plan, two additional Saipanda characters—a female Sai-panda and little Sai-panda—would be introduced to appeal to the family and female segments of the market.

In the succeeding years, the MVA tapped advertising firms to promote the CNMI in Japan.

MVA had signed a contract with Atatsu DK, which cost $921,000 and took effect on Feb. 1, 2004, expired on Dec. 31, 2004. The contract was later renegotiated in view of MVA’s limited funding.