‘NMI beats out Hawaii, Australia’

The Northern Marianas performed better than two major competing destinations in fiscal year 2004, based on a comparison of arrival figures from Japan from October 2003 to July 2004.

Marianas Visitors Authority statistics showed that for most of the months throughout the 10-month period, the CNMI posted higher growth rates in Japanese arrivals than Hawaii and Australia.

The increase in tourist arrivals has translated into more occupied hotel rooms in the Northern Marianas but room rates have not kept pace with this increase as hotel operators continue to charge low rates for their rooms.

In June 2004, when the CNMI posted the highest arrival rate, hotel room prices averaged only $72.99—a measly $2.38 increase from the $70.61 posted in June 2003. In September 2004, this went up slightly to $78.05, higher than Sept. 2003’s average room rate of $75.

The average room rate in June 1997 was $128.68 before it plunged to $107.87 the following year. Room price continued to fall until it reached the six-year low in June 2003.

Japan is the prime tourism market of the Northern Marianas. As of August 2004, Japan has sent out 10.714 million travelers to various places all over the world.

MVA noted that, in comparison with other destinations such as China, Korea, Hong Kong, Hawaii, Bali, Guam, Australia, and Palau, the Northern Marianas was the first destination that displayed signs of positive growth in arrivals from Japan after the SARS outbreak last year.

In October 2003, visitor arrivals from Japan to the CNMI posted a 16-percent increase, as compared with October 2002. In the following month, competing destinations such as Bali, Hawaii, Guam, and Palau indicated initial signs of recovery in Japan arrivals.

By April 2004, the CNMI and all of the competing destinations, including China, Korea and Hong Kong, showed arrival figures steadily increasing as compared with the same months in 2003.

However, the CNMI constantly performed at higher growth levels than competing destinations such as Hawaii and Australia.

“While the effects of the past two years have gradually subsided, the CNMI continues to face several challenges, as we remain competitive in the international marketplace,” MVA managing director Vicky Benavente said.

“Competition is intense between destinations which are equipped with substantial resources as they realize the strength of tourism as a powerful economic tool. The MVA is working with limited budget resources as compared to these competitors, but is committed to working with its members to deliver a high quality and competitive tourism product,” she added.

Arrivals to the CNMI exceeded over half a million visitors in FY 2004, surpassing arrival levels since 1998. The fiscal year’s figure represents an encouraging 14-percent growth as compared with FY 2003, showing signs of rebound in the tourism industry.

In FY 2004, the increase in visitor arrivals was attributed to the low arrival base in FY 2003. Due to economic issues and global concerns affecting worldwide travel, many destinations welcomed less than their usual number of arrivals in 2003.

As a result, arrivals for 2004 are expected to grow robustly based on signs of improvement in the economies of several countries such as the United States and Japan, as well as the resolution of global issues.