Arrivals up 25 percent in August

Visitors arrivals to the Marianas jumped 25 percent in August 2017 compared to August 2016.

Total visits to the CNMI this fiscal year has already reached 602,176, surpassing total arrivals of 501,489 last year with one more month remaining in the fiscal year.

According to Marianas Visitors Authority numbers, visitor arrivals totaled 61,026 in August 2017, compared to 48,971 visitors received in August 2016. This marks the third highest August monthly arrivals in Marianas history, the record being 65,803 in August 1995.

“Overall, visitor arrivals are 31 percent higher so far this fiscal year compared to the same period last year, and that’s due to many factors, both international and local,” said MVA managing director Christopher A. Concepcion. “Most important locally, the allotment of the hotel occupancy tax as the only source of funding for all of the MVA’s programs—other than a mere $1 appropriation—is crucial to our continued tourism success. The Marianas needs marketing, and we need product development. It is proven that this is a winning formula for the economy, and we believe it is best that the tax remain intact for the MVA so we can continue to grow the economy.”

Arrivals from South Korea continued their double-digit upward trajectory, jumping 44 percent to 30,936 visitors. Arrivals from Korea are up 70 percent overall this fiscal year, driven by the stable supply of air seats.

As of August 2017, one national flag carrier and four low-cost carriers—Asiana Airlines, Jeju Air, Jin Air, T’way, and Eastar Jet—provide Incheon-Saipan flight services, while Asiana Airlines and Jeju Air also offer flights between Busan and Saipan.

Since Jeju Air has confirmed to commence four times weekly Busan-Saipan services until March 2018 and T’way will be operating daily Incheon-Saipan flight service back starting from December 17, 2017. a continuous growth of Korean visitors is expected.

Arrivals from China grew 20 percent compared to August 2016 to 22,453 visitors. Several agent and media familiarization trips to the Marianas during the month, including DFS Agent FAM, Travel Channel filming, and virtual reality filming, will stimulate these agencies to promote the Marianas and allow the travelers to experience the islands authentically.

The ADEX Ocean Week on Aug. 31 showcased the best diving resources and culture of the islands. With the help of this platform, Chinese travelers are expected to stabilize and attract more diving enthusiasts to visit.

Arrivals from Japan were at 4,843 visitors in August, 23 percent lower versus August 2016. With Delta Air Lines’ single daily flight from Tokyo-Narita, airlift remains a key challenge for this important market.

Heavily discounted travel packages available to Hawaii and Guam via Air Asia X and T’way, respectively, also make Saipan packages comparatively higher.

Also, pricing and perceived value for travel to Saipan is higher in comparison to other destinations.

Delta has added Saipan to their ongoing beach resort promotional campaign beginning in July, which includes promotions to Hawaii, Palau, and Guam.

Japan arrivals are expected to stabilize, although the MVA remains cautious in its projections due to various factors that continue to affect this critical market.

Delta has also announced plans to use larger aircraft beginning mid-November 2017 through March 2018, adding 24 additional daily seats, which should increase overall arrivals from Japan.

Economic highlights

The South Korea Finance Ministry has raised the country’s growth outlook to 3 percent from the previous forecast of 2.6 percent. It is the first time in three years the Korean government has lifted its growth target back to the 3 percent range. The average U.S. dollar/won exchange rate in August was 1,133.87 won, a slight decrease from the previous rate of 1,139.33 won in July.

The China Consumer Price Index of July 2017 saw an overall increase of 1.4 percent year on year. In September, the island tourism product price index is estimated to be 130.6, a decrease of 2.2 percent compared with August.

Short-distance destination such as Bali and the Marianas fell slightly. Among all the island group tour products, the Marianas tourism products experienced the most remarkable decrease, seeing a link ratio decrease of 10.1 percent.

A combination of improving consumer confidence and dynamic investments in Japan led the economy to expand at the fastest pace in over two years in Q2 of 2017. Monthly average rate of U.S. dollar to Japanese yen exchange in August 2017 was 109.77, up compared to 112.34 in July. (PR)