MVA sets lofty goals for 2011

Five years from now, the CNMI shall have carved its own niche in international tourism as an authentic tropical paradise, a popular destination known for its natural beauty and clean environment, rich culture, and a vibrant community.

That, at least, is the vision, based on the five-year strategic plan that the Marianas Visitors Authority presented during its general membership meeting yesterday at the Sand Castle Restaurant of the Hyatt Regency Saipan.

This goal is paramount, especially with the Fitial administration’s aim to attract 1 million tourists by 2008, MVA said.

That goal, said MVA board chair Jerry Tan, is very challenging, as this would mean bringing in over 84,000 tourists a month, 28,000 a week, or 4,000 a day.

“We have a lot of work to do. It’s not easy. It’s very, very challenging,” said Tan.

“One million. Governor, are you kidding?” he jested.

Good news, bad news

Tan said the good news is that the CNMI’s major markets have shown an upward trend in terms of outbound travel.

He said that Japan is now approaching 20 million travelers a year; Korea, 10 million; and China, 30 million.

“The good news is they are traveling. And I should add, they have money to travel. The bad news is that they are not coming here,” he said.

By the end of this fiscal year, Tan said that the CNMI would only be getting some 400,000, which he said is a 1991 level.

“We are not moving forward. It’s going backward to 16 years ago. That’s terrible news,” he said.

This year’s reduced projection is due in large part to the adverse impact brought about by the departure of Japan Airlines last October. JAL used to bring 155,000 tourists a year.

So far this fiscal year, the total number of visitors had only reached 254,981 or 18 percent down compared with the same period in FY 2005.

Latest statistics show that Japan, the CNMI’s largest tourism market, plunged 28 percent last month, from 39,748 visitors in April 2005 to 32,981 this year.

In 2005, tourist arrivals totaled a little over 500,000.

Medium-priced destination

Part of MVA’s five-year strategy is to position the CNMI as a “medium-priced destination” rather than “an expensive low-cost destination.”

Right now, the CNMI is perceived as an expensive low-cost destination—low-cost because there is not much activity for tourists to spend on. At the same time, it is an expensive place for the industry due to its dollar currency, resulting in a higher cost of doing business here.

Other destinations in Asia like Bali, the Philippines, Thailand, and Malaysia have lower-valued currencies but more elaborate facilities, a greater choice of shopping, vibrant nightlife, and a higher level of hospitality service due to lower labor costs, it said.

“The clear advantage of positioning the CNMI as a medium-priced destination is that it puts us in the same bracket as our competitors, albeit in the lower range. But being in the lower range of the mid-priced bracket serves as an impetus for the CNMI and gives adequate room to greatly improve its tourism product,” MVA said.

It cited that based on its 2005 survey in Japan, it appears there is room for the NMI to increase tour package prices.

A key segment of Japanese tourists, the silver market or senior citizens, are willing to pay more for a CNMI package.

“Our target markets have a growing capacity to spend more, as their local economies improve,” the MVA said.

One million

Based on the plan, the CNMI aims to bring in 500,000 tourists from Japan in four years, representing 50 percent of total arrivals; 250,000 or 25 percent from China; 150,000 or 15 percent from Korea; 25,000 or 2.5 percent from Taiwan; 10,000 or 1 percent from Russia; and 65,000 or 6.5 percent from other markets.

Destination brand

The plan requires that the CNMI develop its own brand, one that captures the Hafa Adai spirit—the islands’ warm hospitality, rich culture and history, and clean and beautiful environment.

“Who are we? Are we the Northern Marianas? Commonwealth of Northern Mariana Islands? We need a brand,” said MVA board vice chair Marian Aldan Pierce.

The five-year strategy plan was prepared by the Ad hoc Tourism Committee of the Strategic Economic Development Council.

During yesterday’s full-packed event, which was attended by government leaders and business executives, Tan made a presentation on the challenges for the MVA while Ron Leach, executive vice president of Bank of Hawaii, spoke on tourism’s role in the economy.

Robert Jones, SEDC chairman, talked about aviation service, Cepeda on destination enhancement, Knight on hospitality and niche marketing, and Aldan-Pierce on current and emerging markets.

Gov. Benigno R. Fitial was the first speaker, discussing his administration’s vision of 1 million visitors by 2008.

The five-year strategy plan, which was prepared by the Ad hoc Tourism Committee of the Strategic Economic Development Council, enumerates ways to increase tourist arrivals in the CNMI, covering increased air service, which includes the possibility of establishing a signature carrier for NMI and or Micronesia; enhanced destination—new attractions, more entertainment options, use of 80,000 square meters of “underutiltized” government land in Garapam; increasing hotel rooms by at least 500 rooms, intensified advertising campaigns, and increased marketing and advertising funding to be competitive with other destinations.