Hotels’ occupancy declines in August

Rising fuel prices and a decline in the number of Japanese tourists visiting the CNMI contributed to a 5 percentage point drop in hotel room sales for August compared to last year, yet the pending federal takeover of local immigration rules appears to have boosted the number of Russian tourists hoping to enjoy the islands before visa requirements begin.

In newly released statistics, the Hotel Association of the Northern Marianas Islands reported a drop in hotel room sales among its members for August, down from the 57,386 sold in August 2007 to 52,998.

“August has traditionally been a peak month, but this year’s results were down 5 points compared to last year in large part because of rising fuel prices,” said Lynn Knight, who chairs HANMI’s board. “August is a time for family travelers, and this year, more Japanese families in our largest tourist market stayed home or traveled domestically in Japan because of concerns about rising costs of fuel.”

Many airlines have begun adding a fuel surcharge to ticket prices due to higher fuel costs, Knight noted, a move that has limited the plans of traveling families more than solo tourists because the increase for them is multiplied. The impact of higher ticket prices on the tourism market is also reflected in figures from the Marianas Visitors Authority, which reported a 13.5 percent drop in Japanese tourism for August earlier this month.

Meanwhile, Russian tourism is on the increase due in part to aggressive marketing by local hotels and MVA. Yet a separate factor driving the relative boom in the number of Russian visitors reaching the CNMI appears to be the “federalization” of the local immigration system, a change that could result in stricter visa requirements for Russians and tourists of other nationalities.

“We have also heard that more Russian visitors are coming to the CNMI this year because they are unsure of whether we will continue to have tourist visas for Russians next year after the takeover of immigration next June 2009,” Knight said. “They want to spend as much time as they can enjoying their vacations here in our islands now.”

While Russian tourists constitute a small demographic in the CNMI’s tourism industry, the number of them arriving each month has gone up rapidly this year. According to the MVA, 631 Russians arrived in the CNMI last month compared to the 342 that arrived in August 2007.

Despite the decline in hotel room sales, Knight said the tourism industry saw a slight spike in American visitors last month with the arrival of two military ships.