MVA upbeat about a bigger budget for promoting the CNMI

The estimated $6 million to be generated by the newly enacted law that levies a $15 tariff on tourists or other transient occupants of hotel and similar facilities will even out the budget shortfall for the Marianas Visitors Authority, according to managing director Perry Tenorio.

Tenorio said the new $15 fee, which will go toward tourism and environmental programs, will be additional money for the agency in charge of promoting the CNMI to key tourist markets.

House Speaker Eli Cabrera’s House Bill 17-290 is now Public Law 17-75 after Gov. Benigno R. Fitial signed it into law on Monday, making it the first major revenue-generating bill that became law in the 17th Legislature.

Funds derived from the $15 fee will be deposited into a revolving fund administered by the Department of Finance and remitted to MVA for use to build, equip, improve, and maintain projects, agencies, and facilities promoting recreation and tourism.

Tenorio said MVA’s budget submission for fiscal year 2013 is about $11.6 million, which would cover the amount that the agency would use to promote the CNMI in Japan, China, Korea, and Russia.

“Our budget’s limited when we compare it to other destinations that promote within our source countries. But we try to do the best we can,” he added.

The governor’s proposed budget for MVA, however, is only half of the agency’s submission—some $5.8 million.

“If we’re looking at the $5 million [budget] and the $6 million [$15 fee], potentially we’ll have that $11 million that we initially requested,” Tenorio told Saipan Tribune.

According to Tenorio, MVA’s budget is “re-invested,” meaning it will be used to promote the CNMI’s travel industry, the “sole economic driver” for the islands.

Given the islands’ meager resources, however, Tenorio said there is a “balancing game” to be played to ensure the continued operations of other agencies and entities such as the Commonwealth Health Center, the Commonwealth Utilities Corp., and the Department of Public Safety—all of which are “very important” for the success of the travel industry.

While he welcomed the arrival of Saipan Air, the CNMI’s first national carrier, and the passengers it will bring to the islands, Tenorio also underscored the need to promote the new airline so that potential travelers will know about it and avail the air service it offers.

He expressed excitement about Saipan Air, including Osaka in its route. “We’ve been absent in that market for quite a while, and people from Osaka will now have a better chance to come here now.”

Tenorio is also pleased that the airline will penetrate the Shenyang and Beijing markets in China.