Tinian Dynasty Says Charter pact unlikely until airport project completion

Tinian Dynasty Hotel and Casino is not very optimistic about being able to strike a deal with any carrier this time, pending the completion of the multi-million dollar airport improvement project on the island.

Hotel General Manager Tom Liu said Tinian Dynasty is not likely to cough up additional money to intensify its off-island promotions, especially when the company is hardly able to breakeven due to low guest haul and in the absence of better airport facilities.

Unless the West Tinian International Airport Improvement Project is completed, hotel operators will rely on the promotional activities of the Marianas Visitors Authority to lure more tourists.

“If the airport is finished, then that will be the time that we will be more aggressive, there’s not so much that we can do about it right now,” the manager explained.

However, he maintained that termination of the charter agreement with Mandarin Airlines does not have significant effects on Tinian Dynasty’s revenues during the past months.

Although occupancy rate has not achieved the original target, Tinian Dynasty relatively earned to break even last month, thanks to the continued arrival of Japanese, Korean and Taiwanese visitors.

Mr. Liu said Tinian Dynasty lost so much money from the charter agreement with Mandarin Airlines since 150 seats were paid by the hotel in whole regardless of how many passengers were bound for the CNMI.

But charter agreements will not be the answer to Tinian Dynasty’s need to generate additional income. Even without the program, Mr. Liu said business has been tremendously improving since November last year.

After concluding the past year with a slightly higher occupancy rate, Tinian Dynasty is now crafting concrete plans to draw more foreign and local visitors into the once drowsy island in 2001.

Mr. Liu disclosed Tinian Dynasty is hoping to reach a conservative annual average of 50-percent occupancy rate for this year, higher by 12 percent from last year’s finish of 38 percent.

He stressed the 50 percent anticipated occupancy rate for the year is the most realistic projection Tinian Dynasty could come up with due to several factors that affect the entry of tourists into the Northern Marianas.

The multi-million dollar hotel-casino facility opened its doors to foreign and local visitors in early 1998. It is the first casino in the Northern Marianas which was hoped to fortify Tinian’s economy.

Last year’s 38 percent occupancy rate improved by eight percent from the total number of Tinian Dynasty hotel rooms occupied in 1999. Mr. Liu attributed the low occupancy rate to the limited number of airline seats earmarked by international carriers from major Asian countries like Japan, Korea, Hong Kong and Taiwan to the Northern Marianas.

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

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 in 1999 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.