‘China is future’s most important market’

Although Japan continues to be CNMI’s biggest and most important tourism market, the number of Chinese outbound travelers has steadily increased through the years and is projected to reach 100 million by 2016, making it an important market that the Commonwealth cannot afford to ignore, according to Tan Holdings president Jerry Tan.

“Today, anywhere you go in the world, you will run into Chinese tourists and every government is courting the Chinese tourists,” said Tan, speaking to members of the Rotary Club of Saipan yesterday.

Tan said that China is arguably the fastest-growing tourist market in the world. From only 10.3 million outbound travelers in 2000, it has increased to 70 million in a span of 12 years, prompting many states across the nation such as Hawaii, Nevada, and California to initiate efforts to go after this emergent tourist market.

Besides their ever-increasing number, Chinese tourists also have substantial spending power, he added.

“That, actually, is the most important market in the near future,” he stressed.

Tan’s presentation showed that since the China market started coming to the Commonwealth through Tinian Dynasty’s charter flights, the number has increased from 2,478 in 1998 to 42,344 in 2011. While arrival numbers are going up, Tan noted that it is still “a very small number.”

“We need a lot more Chinese tourists than just 42,000,” he said.

Tan attributed the CNMI’s meager share of Chinese tourists not only on the “difficulty” of dealing with charter flights but most notably the lack of a stable air service on the islands.

Having a year-round air service, Tan said, will allow the islands’ tourism industry to bounce back from its current state and turn around the local economy.

“It continues to be the top concern and top priority as far as our desire to recover with our economy because at the end of the day, tourism is the only industry that we have,” he added.

Tan is optimistic that the launch of Saipan Air will help boost tourism arrivals in the Commonwealth. Owned by Tan Holdings, Saipan Air will be the first national carrier of the CNMI and is set to launch its inaugural flight on July 1.

Saipan Air will initially provide daily flights to Narita City in Japan and four times a week service (Monday, Wednesday, Friday, and Sunday) to Beijing, China. Beginning Aug. 1, the airline company will offer daily flights to Osaka and thrice a week (Tuesday, Thursday, and Saturday) flights to Shenyang.

Saipan Air will use a Boeing 757-200 for the Narita, Beijing, and Shenyang flights. This aircraft has a 193-seat capacity, 177 of which are economy seats while 16 are business class seats.

Meanwhile, the Osaka flights will use the smaller Boeing 737-400, which can accommodate 138 passengers in economy class and 12 in business class for a total of 150 seats.

Tan revealed that one 757 aircraft and one 737 aircraft are expected to arrive on June 28. Both planes are currently in Indiana for routine maintenance checks. Another 757 aircraft, which will pull in by Aug. 1, will be used as a “backup” to ensure continuous and reliable service.

Tan said that based on seat configuration and other factors, they expect each Saipan Air flight to bring in an additional 50,000 tourists annually. With every tourist spending $667 on the average, all three flights are projected to infuse about $100 million into the local economy.

“It’s no small number. This is very, very big,” Tan pointed out.

Tan also noted that the additional tourists will bring back the CNMI’s overall tourism arrivals to the same level as 2005, before the pullout of Japan Airlines from the Commonwealth.

Saipan Air will also be looking at tapping other important cities and markets such as Nagoya, Fukuoka, Hong Kong, and Taipei in Taiwan, said Tan. In the meantime, the company will focus on where it has the best chance for success “and try to make it work.”

Tan urged the community to rally behind the new airline and pray for its success since “Saipan Air’s success is CNMI’s success.”

“For the sake of our people and the economic recovery, we really need to grow our tourist arrivals,” he added.