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Legislature asked for $1M for China
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Posted on Aug 25 2005
CNM business representatives have asked the Legislature to appropriate $1 million to start promotional activities for China market.
House Speaker Benigno R. Fitial said yesterday that a newly organized business group called G-10, representing 10 businesses in the CNMI, has met with House members to discuss strategies in promoting the Commonwealth in view of the scheduled pullout of Japan Airlines on Oct. 1.
During the meeting, he said, the group recommended that the Legislature come up with $1 million for the China market.
“They need that to start up the campaign,” said Fitial.
Based on the plan, the funding would be given to the Marianas Visitors Authority.
G-10 is co-chaired by Duty Free Shoppers president Marian Aldan-Pierce and Tan Holdings executive vice president Jerry Tan. The group represents 10 business sectors including the hotels, banking, airlines, restaurants, and others.
The group’s meeting with the lawmakers on Tuesday centered on the prospects of the CNMI tourism industry in view of JAL’s departure in October.
The group discussed the June 2005 report by the Economist.com, which showed that the CNMI would lose as much as $216.2 million in economic output annually without JAL.
The assessment showed a worst-case scenario, which is a loss of 2,550 jobs and $38.8 million in personal income annually. This projection was based on a scenario where none of the passenger traffic currently brought in by JAL would be picked up by other carriers.
JAL brings about 155,865 passengers to the CNMI annually.
The government said the JAL pullout would result in $80 million to $100 million in losses across the community, based on a projection of a 45-percent decline in the number of Japanese tourists.
Northwest Airlines earlier announced that it would launch its Osaka flights to Saipan daily beginning Oct. 1.
Meantime, MVA has received $1 million appropriation this year for Japan market.
MVA said that about 400,000 tourists from Japan arrive in the CNMI every year, representing nearly 75 percent of the CNMI’s tourism market.
