HANMI lauds CPA for incentives

The Hotel Association of Northern Mariana Islands yesterday commended the Commonwealth Ports Authority for helping revive the island’s ailing tourism economy by providing incentives to airlines.

Ron Sablan, president of HANMI, expressed hope that this will encourage airlines to expand service in the CNMI to help boost traffic and increase hotel occupancy.

“Even if all the four signatory airlines servicing various routes to the CNMI will always be in full capacity, hotel occupancy will still be only 50 percent,” said Sablan.

The CPA board approved a 50 percent cut in departure and arrival fees effective May 1, 1999 until February 29, 2000 to airlines that can provide an additional 15 percent increase in the average number of passengers that they bring in to the CNMI.

However, CPA did not grant a 50 percent reduction in landing fees and provide incentive to airlines that will service new routes. According to CPA board members, it is difficult for them to reduce the landing fee for all signatory airlines because of the different types aircraft being used in servicing the CNMI.

During Japan’s Golden Week Celebration, occupancy of major hotels in the CNMI reached 100 percent as JAL offered seven charter flights — one from Osaka, three each from Fukuoka and Nagoya — to accommodate the influx of Japanese tourists coming to Saipan.

Since last year, Continental Micronesia has drastically cut its service from various cities in Japan to the Northern Marianas. MVA is hoping that Continental Micronesia would make use of the incentive by increasing the number of flights it has earlier reduced due to the low demand.

Tourism officials have expressed concern on the termination of Osaka-Saipan direct flights by Continental Micronesia on April 1, 1999 since this would result in the monthly loss of some 1,016 passengers. The figure is based on the average number of passengers that the airline brings in to the CNMI since the beginning of the fiscal year.

Continental Micronesia claimed that the termination of Osaka-Saipan service was due to the low demand on this route as passengers taking the non-stop and connecting flights to Saipan plunged 39 percent. The airline’s decision leaves only two direct flights of Continental to the CNMI — Nagoya-Saipan and Hong Kong-Saipan.

Beginning March 1, 2000, the ports authority will implement the new rates for the airport which was earlier suspended in a move to help the island’s main source of revenue recover from the current slump brought about by Asia’s financial crisis.

This means that passenger facility charge shall increase by 39 percent from $5.79 to $8.00 per passenger and the landing fee shall jump by 65 percent hike from $.85 to $1.40 per 1,000 pounds.