HANMI braces for 29% decline in Japanese tourists

The CNMI would be losing over a hundred thousand Japanese visitors following the pullout of Japan Airlines’ regular flights to Saipan, which would result in an economic loss of as much as $37 million and more job losses in 2006.

Under this projection by the Strategic Economic Development Council, the 29-percent decline would mean a loss of some 109,116 Japanese tourists for the CNMI to equal Fiscal Year 2005’s Japanese arrivals of 376,263.

The SEDC finding, through a study conducted by consulting firm Economists.com, caught the attention of Hotel Association of the Northern Mariana Islands members, who met with newly elected lawmakers at the Hafa Adai Hotel Wednesday to hear presentations about the state of the CNMI’s tourism industry.

Bank of Hawaii vice president Steve Brock made the presentation on the SEDC study, the HANMI reported in a media release.

“This is a crucial time for our economy and we need up-to-the-minute information so that we can plan strategies and work closely with our government leaders to improve tourism,” said HANMI chairwoman Lynn Knight.

“We certainly appreciate all the work that this study group has done. We will continue to brief our new government leaders on an ongoing basis. HANMI is committed to working hard with our members and our government to bring tourism back to where it should be,” said Knight.

HANMI noted that the Marianas Visitors Authority’s $5.9 million budget serves as another challenge to the local tourism industry, noting that other destinations such as Guam and Hawaii are spending as much as 10 times that amount to promote themselves to tourists.

Tan Holdings Corp. and Asia Pacific Hotels, Inc. president Jerry Tan noted that investments in promotions have been paying off for destinations such as the Philippines and Okinawa, besides Guam and Hawaii. He said there is a need to enhance the CNMI as a tourist destination to make it competitive.

“The good news is the statistics show that people are still traveling and outbound tourism is growing from our key markets—but the unfortunate truth is that they’re not coming here,” said Tan.

“When you see what our competition is doing in places like Hawaii, Guam and Okinawa, you can’t help but want to go there. This shows us that we really need to work hard on destination enhancement so we can compete in the future,” he added.

Tan also reportedly spoke about the ongoing diversification of the CNMI’s markets, which include travelers from Japan, Korea, China, Taiwan, and Russia.

Saipan’s DFS Galleria president Marian Aldan-Pierce, whose company has announced a management workforce reduction due to reduced flights from Japan, among other factors, also spoke before the HANMI meeting.

Following the presentations, HANMI members came up with a conclusion to improve the CNMI’s tourism. The HANMI said the CNMI should develop a vision and strategic plan, invest in destination enhancement and redevelopment, diversify markets with country-specific strategies, build awareness in those markets with adequate MVA funding, and grow air service.

The HANMI also noted the need to develop a joint effort by government and the tourism industry to re-develop convenient air service to boost the growth of the CNMI’s five major markets.

“Awareness plus teamwork is needed to improve the destination which will in turn help build demand. Air service will follow demand,” noted HANMI, the members of which voted Northwest Airlines for its inclusion in the roll beginning 2006.

While the HANMI commended some hotels for investing over $40 million in renovations and improvements in the past two years, the association pointed out that more effort needs to be done, including the redevelopment of Garapan and other areas, which will require partnership between the public and private sectors.