HANMI upbeat despite slim decline in occupancy

While October posted a decline in hotel room occupancy, hoteliers are optimistic recent developments in the visitor industry could lead to a turnaround in the coming months. HANMI figures, which cover a 12-year period from 1992, show October has historically been a slow month for tourism.

According to HANMI, average room occupancy for October this year was 63.26 percent, slightly lower than the 63.67 percent recorded for the same month last year. In 2002, average room occupancy was 54.68 percent.

Moreover, HANMI statistics showed that average daily room rate for October 2004 was $73.62. Last year, the average daily room rate for the same month was $75.51; in 2002, it was $72.05. Hotel room occupancy for September this year was 79.33 percent; average daily room rate was $78.05.

“While October wasn’t one of the better months of the year, we are encouraged about the general outlook for tourism, with several recent positive developments in the market,” said HANMI chairperson Lynn A. Knight.

She said a promising turn of events highlight the need for lawmakers to reconsider plans to slash the Marianas Visitors Authority’s budget from $7 million to around $4 million.

“With the opportunities we now have to improve tourism, it’s all the more important that MVA continues to have the budget it needs to promote the destination, so we do hope the budget will be put back to the original level of $7 million for 2005,” said Knight.

MVA had submitted a $14-million spending package for fiscal year 2005 to the Legislature. MVA operated on a $7-million budget in FY 2004. Lawmakers are still deliberating on MVA’s budget for FY 2005.

Knight said the approval of the CNMI government’s application with the People’s Republic of China for an Approved Destination Status—a signing ceremony for the memorandum of understanding is set to take place soon—is expected to give local tourism a much-needed shot in the arm.

Another factor, said Knight, are the new direct flights of Continental Airlines to Hong Kong, Taipei and Manila, which will make it much more convenient to attract visitors from these markets.

The opening of the Paseo de Marianas Garapan pedestrian mall on Nov. 9 last week, and ongoing renovations at various hotels like World Resort Saipan, Dai-Ichi Hotel Saipan Beach, Hotel Nikko Saipan and Aqua Resort Club, among others, are also expected to help boost tourism.

“It was a pleasure to help celebrate the kick off of Aqua Resort’s renovation this week and we are also expecting that several of Saipan’s resorts will be renovating in the coming year. These developments are all positive for the destination,” said Knight.