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Fuel tax earnings eyed anew for MVA promotions
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Posted on Apr 04 2005
The Marianas Visitors Authority has revived a proposal originally made four years ago to earmark government earnings from the aviation fuel tax for MVA’s marketing activities.
The MVA board of directors resolved in a recent meeting to revisit the issue, as part of the agency’s efforts to raise more funds for advertising and promoting the Northern Marianas in its tourism markets.
MVA chair David Sablan recalled that the Legislature had vowed to set aside aviation fuel tax revenues on the condition that tourism offices were established in Tinian and in Rota.
“We already hired a marketing manager each for Tinian and Rota. Now they have to make their part of their commitment,” Sablan said.
MVA vice chair Marian Aldan Pierce further noted that the airlines themselves support the idea of using the fuel tax revenues for promoting the destination.
She said that when a proposal was made to abolish the aviation fuel tax, the airlines expressed willingness to continue to be taxed provided that the monies collected from them were spent on marketing.
The proposal was initially made in 2001 with House Bill 12-359, which sought to reprogram 100 percent of revenues generated from the aviation fuel tax to fund promotional activities of MVA.
But then Gov. Pedro P. Tenorio vetoed the bill, citing the recommendation of the MVA board which strongly opposed the creation of additional positions. The board believed that hiring marketing specialists for Tinian and Rota would cause duplicated functions and unnecessary added costs.
The House of Representatives overrode the veto and passed House Bill 12-416, which had the same intent as its precursor. Still, the proposal was never finalized or implemented.
