Tinian Dynasty reports growth in business

TINIAN – More than two years since it opened its doors to the public and suffered financial setback due to economic downturn, the first and only casino gaming facility here is starting to witness business growth courtesy of new flights out of Taipei to the CNMI.

Tinian Dynasty hotel general manager Tom Liu, in an interview, disclosed the facility is now enjoying an average of 50 percent occupancy rate, which translates to a significant improvement from 30 percent a year ago.

Mr. Liu said Tinian Dynasty is now a little above than just breaking even, attributing the growth to the entry of visitors from Taiwan following the deployment by Mandarin Airlines of two flights per week between Saipan and Taipei.

“Business is doing okay and we’re still trying to survive. Of course the number is slightly better than before but we’re still in the surviving stage,” he told an interview after the groundbreaking ceremony for the new West Tinian International Airport Friday.

“We’re doing at about 50 percent occupancy rate which is better than 30 percent a year ago mainly because of the flights from Mandarin Air that’s bringing in the bigger volume,” Mr. Liu stressed, adding that the management is upbeat on the opportunities that will be created by the new Tinian airport.

He noted that the new Tinian airport runway will open employment and investment opportunities not only during the construction period but also after the project has been completed since it is expected to result into the entry of direct international flights to the island.

“Obviously we’re excited that the runway extension project is underway. By just looking at the possibility of employment and investment opportunities, we’re sure many things are bound to happen,” he added.

The hotel executive also described the new Tinian airport runway as the road that is being paved to open up the economic development of Tinian and all the other islands in the Northern Marianas as well.

Tinian Dynasty started experiencing a respite from its losses earlier last year amid the reported $18 million net loss the company incurred during its first 10 months in operation.

The Tinian Dynasty management is expecting a better year for the resort, citing an increase in the number of tourists who now visit the hotel-casino facility since the beginning of last year.

Tinian Dynasty used to cough out a monthly average of $2 million in employee payroll and benefits alone.

Its total fixed cost, including payroll and allowances, previously amounted to about $3 million a month.

Tinian Dynasty’s previous average level of profit reaches only about $2 million per month. This figure represents a $1 million monthly shortfall.

The dramatic drop in tourist arrivals, not only in the CNMI but the whole of the Asia-Pacific Region, has been charged to the worsening economic upheavals in the area over the last eight months with the Japanese Yen sliding by 25 percent; Korean Won by 55 percent; and Indonesian Rupiah by more than 100 percent.