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HANMI: Plumeria closure cuts hotel room numbers
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Posted on Apr 23 2009
Plumeria Resort’s closure in October dragged down the number of rooms available in the CNMI, according to the Hotel Association of the Northern Mariana Islands, which reported a slight increase in occupancy at 69.42 percent in March.
The Achugao hotel’s closure brings the number of HANMI members to 13.
In a statement yesterday, HANMI said its 13 members sold 50,658 of 85,250 available room nights, compared to 51,344 of 87,978 room night sold in March 2008.
“The decline in available room nights is due in part to the closure of Plumeria Resort in 2008,” said HANMI, which was established in 1985 as a professional forum for the CNMI’s hospitality industry.
Although the occupancy rate is up, the average room rate in March 2009 declined to $90.55 from $96.55 in March 2008.
HANMI vice chair Nick Nishikawa said most of the hotels depend on wholesalers and agents.
“Due to the global economic situation, travel trends, and heavy competition among resort destinations, the travel agents’ tour package prices have been decreased. Right now it’s a buyer’s market, but our industry focus remains to offer quality customer service to support growth when the economy recovers,” said Nishikawa.
The number of HANMI employees is also down slightly by 32 percent—or from 1,931 in the beginning of the year to 1,899.
The reduction reflects losses largely of 26 resident employees, and the rest are contract employees.
Despite the slight increase in occupancy in March, year to date levels are still far below previous years’ due to a slowdown in arrivals.
In addition, the next round of 50-cent minimum wage increase in May is seen to further hurt hotels, which may be forced to lay off employees, cut benefits, or reduce work hours.
HANMI earlier said that some 68 percent or 1,802 of the total 2,636 employees of hotels will be affected by the minimum wage hike.
From the current $4.05 an hour, the CNMI’s minimum wage will increase to $4.55 an hour in May.
