Visitor arrivals at 38K in May—MVA

Arrivals to the islands of Saipan, Tinian, and Rota reached 38,262 visitors in May 2019 compared to 46,093 in May 2018, a 17-percent decrease, according to the Marianas Visitors Authority.

Korea had another month of steady recovery since Super Typhoon Yutu, posting 17,750 visitor arrivals and retaining its position as the top-performing source market for the Marianas. However, due to the downsizing of Asiana Airlines’ aircraft and the decreased frequency of three air services—T’way Air’s and Jeju Air’s night service from Incheon and Busan—arrivals from Korea were 20-percent lower overall compared to May 2018.

“While all flights have resumed since Super Typhoon Yutu, we are still seeing major challenges in each of our sources markets,” said MVA managing director Priscilla Iakopo. “The important point is to ensure there is sufficient funding available for the MVA to continue to strategically promote and market the destination. Tourism is the Marianas’ primary economic driver. We are hopeful that revenue will improve.”

Arrivals from China were 13-percent off last year’s mark at 16,728 visitors in May. The market is facing a rising RMB-USD exchange rate as a result of U.S.-China tensions, which is also making tourists more hesitant to travel to U.S. destinations and increasing pressure on main charter flight operators to book tourists for the Marianas. The MVA is keeping its pulse on the situation through regular communication with key travel industry representatives, and several promotional activities in May aimed to counter the downturn in arrivals. A media familiarization tour focusing on the Taste of the Marianas International Food Festival & Beer Garden and participation in one of the most influential tourism events in China—Internationale Tourismus-Börse Shanghai—as well as 2019 Shandong (Jinan) Tourism Expo and road shows organized by other tourism partners.

Japan posted 671 visitors for the month, 46-percent lower than May 2018 when daily direct flights operated between Narita and Saipan.

Economic highlights
The Bank of Korea announced South Korea’s gross domestic product contracted by 0.3 percent in the first quarter, the biggest decline in a decade. The Korea Development Institute said that at the current level of productivity South Korea’s average growth could slow to 1.7 percent a year in the next decade. According to the Ministry of Land, Infrastructure, and Transport, the number of air passengers totaled 30.57 million during the first three months of the year, exceeding 30 million for the first time. The average USD/won exchange rate in May was 1174.07 won, a slight increase from the previous rate of 1137.12 won in April.

Tourists from China to the United States dropped for the first time in 15 years, despite that the total outbound trips of Chinese tourists rose significantly. Data released on May 28, 2019, by the U.S. National Travel and Tourism Office showed that the number of Chinese tourists travelling to the United States fell 5.7 percent to 2.9 million in 2018. The looming trade war between the two of the world’s most powerful economies has caused notable market disruptions with tensions only looking to escalate in the foreseeable future.

Japan National Tourism Organization reported that the number of Japanese overseas travelers was up 22.8 percent year on year, reaching 1,666,500 in April 2019, approximately 300,000 more travelers than a year earlier. (MVA)