MVA: We need more funding, not cuts

Reducing the already meager budget of the Marianas Visitors Authority is not an option—especially if the administration aims to raise tourist arrivals in the CNMI to 1 million in 2008, according to the MVA board.

During a meeting yesterday morning, MVA officials said that, instead of reducing its funds, the government should actually give the agency a bigger budget.

Board chair Marian Aldan-Pierce said it is about time for the government to look at MVA funding as “investments, not spending.”

MVA board member appointee Jerry Tan, president of Tan Holdings Corp., said that MVA’s advertising budget should never be sacrificed.

“MVA should be getting more funding to advertise, not cutting it. The focus is to get more money. …We have no business cutting the advertising [funding],” said Tan.

Rota member Edward Maratita agreed, saying that if the Fitial administration’s goal is to get 1 million tourists in four years, then it should help fund MVA.

Besides, he said that “MVA acts as the PR agency of the CNMI.”

The MVA management warned that if the government cuts its $5.9 million by $1.5 million—as requested by the Office of Management and Budget—this would jeopardize its promotional activities abroad.

MVA acting managing director Tess Castro said that, based on a revised budget, her office could only come up with $433,774 reduction.

This amount will be further reduced since the board just approved yesterday MVA’s funding share for two projects this year: $60,000 for Happy Children in Paradise summer program and $25,000 for a 42K marathon in June.

Over $5M needed for key markets

MVA marketing program manager Wayne Pangelinan said that, based on the current budget, MVA would need a total of $2.3 million for the Japan market alone.

Without the advertising cost, MVA would need $1.7 million for travel trades, airline costs, and representation fee, among others.

On MVA’s wish list, it also needs an additional $1.2 million in marketing for the Osaka route.

Pangelinan said MVA hopes to get 600,000 tourists from Japan in four years.

For the Korea market, MVA needs $1.2 million for marketing. This includes $520,000 as basic budget and $500,000 for advertising.

MVA hopes to increase tourist arrivals from Korea from 65,000 in 2005 to 85,000 this year.

In 2007, it hopes to get 95,000, and over 100,000 tourists in 2008.

“It’s very challenging but it’s doable,” said Pangelinan, noting that Asiana Airline’s seating capacity a year already totals 112,840.

For the China market, MVA needs $1.2 million for promotional activities.

Based on conservative estimates, MVA hopes to increase Chinese tourist arrivals from 32,421 in 2005 to 37,000 this year, and 42,000 in 2007.

For the Russia market, MVA needs $40,000 this year.

The Fitial administration has adjusted the budget of most government agencies to reflect a revised revenue estimate of $198.5 million from the previous $213 million.