Arrivals up 8% in October

Arrivals to the CNMI increased 8% to 34,670 in October 2019, compared to 32,108 visitors in October 2018, according to the latest numbers of the Marianas Visitors Authority.

Citing its own numbers, MVA said Friday that arrivals from Korea grew 30% in the month to 20,185 visitors.

Korea is facing an economic struggle due to the trade war between Korea and Japan, declining exports, and, to a lesser extent, trade tensions between the U.S. and China.

However, Asiana Airlines added a daily daytime flight beginning on Oct. 27 that will continue through late March 2020. Also, T’Way Air will begin a second daily daytime flights to Saipan on Nov. 21, which will also continue through late March 2020.

Arrivals from China were 15% lower at 11,671 visitors in October. The market is suffering from continued tension in Hong Kong, which provides direct connectivity with the Marianas for the Pearl River Delta region in mainland China. Hong Kong Airlines has suspended its service between Hong Kong, and the load factor of Hong Kong Express has also been negatively impacted. The September 2019 reduction to only 14 days of CNMI-Only parole for Chinese tourists to visit the Marianas has raised new concerns for the market. Furthermore, the exchange rate remained at high levels during the month, making it more expensive for Chinese visitors to visit the Marianas.

Visitor arrivals from Japan jumped 46% to 487 visitors in October. Skymark Airlines has also announced the start of regular direct flights from Tokyo-Narita to Saipan beginning Nov. 29, 2019, and the market is anticipated to grow exponentially over the year. Bookings for the new flights began on Nov. 1, with Skymark offering promotional rates starting at $38 one way plus fuel surcharge and tax. Approximately 40,000 visitors are expected from Japan in fiscal year 2020, based on 80% load factor on scheduled flights; this compares to 12,000 visitors from the source market in fiscal year 2019.

Economic highlights

Chinese travelers cut back on overseas travel and the growth of domestic trips also slowed during the Golden Week holiday in early October, as protests in Hong Kong and a weaker currency and economy discourage people from traveling out of China. The pullback continues the trend of slumping visitor numbers affecting tourist destinations across the region and is another sign of how weak consumer demand is undercutting efforts by China’s government to rebalance and stimulate the economy.

Japan’s consumer price inflation fell to 0.2% year-on-year in September 2019 from 0.3% in the previous month and well below market expectations of 0.4%. It was the lowest inflation rate in seven months. (PR)