Sales down by 15 percent at Joeten

Although an increase in sales is traditionally observed during Christmas holidays, Saipan’s leading shopping center reports a 15-percent decline in sales this year.

“Our sales is good but it’s still lower compared to the past year,” said Clarence Tenorio Jr., vice president of Joeten Enterprises.

Joeten Shopping Center has branches in Hafa Dai Garapan, Susupe, Chalan Kanoa, and Dandan.

Tenorio said the drop in sales was most noticeable following the departure of Japan Airlines last October.

“We started to see the decline after JAL. Fewer tourists mean fewer customers. I’d say it’s about 15 percent drop now,” he said.

He said that Joeten stores are fortunate to be selling basic items such as food products.

“It’s easier to sell food than other non-basic items that people can live without,” he said.

ABC store Paseo de Marianas manager Edward Duenas said the trend in sales has been impacted by the JAL pullout.

“I’d say everything has something to do with JAL,” he said.

Despite this setback, he said, “We are doing fine.”

Tenorio said that, unless the CNMI gets another airline or unless JAL comes back, the tourism industry would continue to suffer.

“We are a consumer-driven economy. Fewer customers, fewer sales,” he reiterated.

He said, though, that he still has positive thoughts about 2006 especially with the entry of a new administration.

On the operational level, he said that Joeten Enterprises would just have to maintain lean inventories and control expenses “to be safe.”

Saipan Chamber of Commerce outgoing president Alex Sablan earlier said that business sales are estimated to be down by 28 percent beginning October 2005 due to JAL’s departure.

JAL, which used to fly directly from Osaka and Tokyo daily, brought about 150,000 passengers a year to the CNMI.

The Osaka daily flight has been replaced since last month by Northwest Airline.

The Tokyo route, however, could not be taken by any other airline since JAL has refused to let go of its slot at the Narita International Airport.

In 2004, the CNMI received 382,000 tourists from Japan, most of them originating from the Narita airport.

In fiscal year 2005 ending last September, Japanese tourists in the CNMI totaled 376,263. Overall, the CNMI received 529,557 tourists in FY 2005.

Sablan had said that local businesses have raised their costs from 10 to 15 percent across the board to combat the increase in costs of doing business in the CNMI.