Visitor arrivals up 610% in November 2019

Arrivals to the islands of Saipan, Tinian and Rota increased 610% to 39,717 visitors in November 2019, compared to 5,595 visitors in November 2018, according to the Marianas Visitors Authority.

Visitor arrivals in November 2018 were extremely low due to the closure of the Francisco C. Ada/Saipan International Airport for most of the month last year following Super Typhoon Yutu.

Arrivals from Korea grew 4,873% in the month to 26,408 visitors, higher than even November 2017. Asiana Airlines added a daily daytime flight beginning on Oct. 27 that will continue through late March 2020. Also, T’Way Air began a second daily daytime flights to Saipan on Nov. 21, which will also continue through late March 2020.

Arrivals from China increased to 9,675 visitors in November to mark a 303% increase compared to 2018, but a 40% decline compared to 2017, which had 16,168 visitors. China is being hurt by the trade war with the United States; the country’s third-quarter economic growth slowed more than expected to 6% year-on-year, marking its weakest pace in almost three decades. In China’s traditional low season for outbound tourism, the market is also suffering from continued tension in Hong Kong, a tightened parole policy visa-free travel to the Marianas for Chinese tourists, and a continuing high exchange rate. In order to reduce costs, major charter flight operators cut capacity between Chinese cities to Saipan in November, and more cuts are planned for December 2019.

Visitor arrivals from Japan grew 713% to 1,025 visitors in November on the wings of daily, direct flights launched by Skymark Airlines on Nov. 29 from Tokyo-Narita to Saipan. Skymark is offering promotional rates starting at $38 one-way plus fuel surcharge and tax. Approximately 40,000 visitors are expected from Japan in fiscal year 2020, based on 80% load factor on scheduled flights; this compares to 12,000 visitors from the source market in fiscal year 2019.

Economic highlights
According to Statistics Korea, South Korea’s consumer prices rose 0.2% in November, marking the first gain in four months. The November reading followed zero growth in October and the first negative inflation rate in September that had sparked fears of deflation; however, the November inflation rate was below market expectations. The average U.S. dollar/won exchange rate in November was 1,188.92 won, an increase from the previous rate of 1,186.40 won in October.

In China in October 2019, the consumer price index increased by 3.8% year-on-year. According to Euromonitor International, China is expected to suffer more than the U.S. in outbound tourism over the next five years under a scenario of a heightening trade war between the world’s two largest economies. (PR)