HANMI, Chamber pushes for MVA transfer to private sector

While the Marianas Visitors Authority board has opposed a proposed measure that will shift the management of the tourism organization to the private sector, the Hotel Association of Northern Mariana Islands and the Saipan Chamber of Commerce yesterday welcomed such move saying it will make the agency more effective.

Removing the present control of MVA from political appointees will bring the tourism office closer to being by business experts rather than “politicians.”

“We believe that with less political interference, this crucial organization that promotes our tourism industry will have the opportunity to become more effective,” said Ron Sablan, president of HANMI.

In pushing for HB 12-135, Mr. Sablan said the mayors of the islands of Rota, Saipan and Tinian should be given a chance to have a say on the administration of MVA. Mr. Sablan noted that Tinian and Rota have been left behind in the activities and promotion of MVA.

By having a non-voting seat in the board, the mayors will be able to guide MVA on how their islands are developing and encourage more promotion of the three-island destination concept, a unique advantage which HANMI believes the CNMI must take advantage of.

Chamber president Lynn Knight said transferring the management of the tourism organization more toward the private sector will increase its effectiveness. She said giving the MVA membership more opportunities to vote for the board of directors will encourage wider participation and support for the organization by tourism-related businesses.

While the overall purpose of the bill is to make MVA work better, Mr. Sablan said its budget for promotion should be increased so that the CNMI can be effectively marketed abroad.

The current budget of MVA is largely tied to the hotel occupancy tax which is in a serious decline due to the low average occupancy and drop in rates by nearly 20 percent since its peak in 1996. Hotel occupancy is now about 60 percent and expected to remain flat for sometime.

“Clearly, we are in a Catch 22 situation where the promotional budget is needed to help increase awareness of our destination, yet, we can’t raise the additional funds needed if our occupancy is at a low rate,” Mr. Sablan said.

HANMI recommended that the government seriously look into other funding sources for MVA like matching what hotels generate through occupancy tax with other government funds.

The hotel association also recommended that the Legislature consider offering tax credits for overseas promotion by individual tourism businesses, which could encourage the private sector to use more of its own resources to promote the destination.

“We feel that the tourism industry cannot prosper without sound, long-term planning and the proper execution of that plan.
Unfortunately, the current MVA management system is not geared toward the long-term,” Mr. Sablan said.

The 19 members of the hotel association have good ideas for tourism development projects which could attract more visitors and take advantage of its unique characteristics. The key here is adequate promotional funding, good long-term tourism master plan, proper execution, and reasonably stable government economic policies,” he said.