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‘CPA will suffer $2.2M revenue loss’
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Posted on Jan 30 2020
The Commonwealth Ports Authority tentatively expects to lose an estimated $2.2 million due to the suspension of flights from China as a result of the coronavirus outbreak that started in Wuhan.
In response to Saipan Tribune’s request for comments about the virus outbreak’s impact on CPA’s revenue, CPA board chair Kimberlyn King-Hinds disclosed that their comptroller’s preliminary review of the impacts peg an annual loss of $2.2 million should the suspension of flights continue toward end of fiscal year.
“That’s just CPA,” she pointed out.
She said Gov. Ralph DLG Torres is working with the Marianas Visitors Authority, Department of Finance, and the Office of the Management and Budget to get the necessary data to determine the overall impact on the CNMI.
King-Hinds believes that the financial impact will be substantial and that Torres thinks as much by including in his executive order yesterday language that mandates an impact report.
“With that being said, the health and wellbeing of our community is priceless and the governor made the right call,” said King-Hinds, referring to Torres’ declaration of a state of significant emergency yesterday.
Travelers from mainland China arrive in the CNMI through carriers such as Hong Kong Express, China Eastern Airlines, Sichuan Airlines, and Beijing Capital Airlines.
Carriers such as Jeju Airlines, T’Way Airlines, and Asiana Airlines also bring Chinese travelers to the CNMI transiting through Seoul and Incheon, Republic of Korea. Approximately 700 mainland Chinese passengers arrive in the CNMI per day through these carriers.
