MVA lowers 2000 budget at $5.88M

As the CNMI government project a continuous decline in revenue, the Marianas Visitors Authority will submit 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.

While board chairman Dave M. Sablan yesterday expressed concern that a further reduction in budget would affect efforts to revive the ailing tourism economy, he said MVA will just have to be creative in maximizing the limited resources.

“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.

During a meeting last Monday, the board has reduced by $500,000 the advertising budget which will amount to $2.94 million for next fiscal year. 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.

Should there be an additional budget cut for next year’s appropriation, Sablan said MVA may be forced to reduce working hours to save on money. According to Sablan, MVA cannot afford to reduce further the budget for promotion especially at this time when it is doing everything to survive the competition in the travel industry.

MVA has already hired Tokyo-based advertising agency Dentsu 10 to help promote the Northern Marianas in Japan, the island’s main market. With its limited budget, MVA has been trying to get back its lost market share and prevent the continuous double digit decline of arrivals from Japan.

At the same time, MVA is pinning its hopes on Visit the Marianas ’99 Campaign which is meant to provide value to the Northern Marianas as a destination.

Sablan has noted the importance of maintaining a marketing campaign in Japan since the Northern Marianas is just starting to make its presence felt there with the hiring of Dentsu 10.

Dentsu 10 has lined up print advertisements in various newspapers and magazines in Japan to promote the CNMI. It will also introduce Saipanda character, the island’s mascot, to help differentiate Saipan from other destinations such as Guam and Hawaii.

In targeting the mass market, Saipanda will be introduced extensively in newspapers, magazines, subway and train stations. It will also tap the wedding and diving markets.