Lack of funds puts MVA campaign in limbo

Due to tight budget, there is no way the Marianas Visitors Authority would be able to carry out additional promotional campaigns or even new projects for this fiscal year.

According to board chairman Dave M. Sablan, the fiscal year 1999 budget for promotion has been drastically reduced due to the 13.4 percent cut on the $7 million appropriation with Japan getting the biggest share amounting to $1.9 million.

For Korea, MVA has earmarked only $165,000 to market the CNMI in its second biggest source of tourists. Even if MVA would like to carry out more promotion in Korea because the market has shown drastic improvement with increasing arrivals for the past months, Sablan said it has no other choice but to make do with whatever amount has been set aside.

But to show the CNMI’s strong interest in reviving the Korean market, MVA officials will go to Seoul to meet with Korean Air officials on May 18 and 19 to seek the carriers commitment in servicing the CNMI again.

As the CNMI government expect a continuous decline in revenue, MVA submitted a $5.88 million budget for fiscal year 2000 to the Office of Management and Budget which is $1.11 million lower than the current budget.

“We have no choice but to do everything we can under the circumstances because the economy is down,” Sablan said. He lamented that although the island’s main economy is tourism, MVA will not be spared from the budget reduction.

MVA board has reduced by $500,000 the advertising budget which will amount to $2.94 million for fiscal year 2000. It has also decided not to implement any pay increase which would save some $100,000. Aside from this, MVA will carry out a freeze in the purchase of equipment and implementation of capital improvement projects.

MVA has ruled out producing television commercials to promote the Northern Marianas in Japan in the year 2000 due to budgetary constraints.

Instead, MVA will remain tapping the newspapers in promoting the CNMI as well as introduce the destination extensively in subway and train stations, according to Perry Tenorio, managing director.

Tenorio said MVA will just have to carry out its promotion within the $5.8 million appropriation for next fiscal year. “We will just have to make do with what little money we have because of the projected low revenue,” he said.