Drastic drop in Russian tourists feared

The CNMI may see a large potential drop in the number of Russian tourists if AviaCharters-DV pulls out from providing airline services to the CNMI, according to the Marianas Visitors Authority board yesterday.

Based on MVA’s updated monthly arrivals, Russian tourists decreased by 19 percent to 675 visitors, the first month of decline this fiscal year.

The number of Russian visitors was estimated at 1,000-plus in 2006 and has since increased to 6,000 in 2009. In 2010, due to confusion regarding visas, Russia arrivals decreased to 4,000 and went up to 5,000 in 2011.

Since AviaCharters started flying to the CNMI in 2012, Russian arrivals in the entire fiscal year 2013 went up to 11,002. This fiscal year 2014, Russian arrivals is projected at 16,592.

According to MVA, if AviaCharters pulls out initially by next year, the Russian market could plummet to the range of 5,000 visitors if nothing is done to arrest the decline.

MVA noted that Asiana Airlines is helping, with access to Saipan via Seoul.

Asiana was the main airline provider for Russia in past years, but with the flights mostly catering to the Korean market, Russian visitors competed for seats. Majority of those arrivals were from the East Russian cities of Khabarovsk, Vladivostok, and Yuzhno Sakhalinsk—all flying through Incheon, Korea.

Although MVA board members noted that AviaCharters has been doing well in providing the CNMI with more Russian tourist, the issue remains between AviaCharters and its supposed partnership agreement with Orenburgh Airlines.

According to their website, AviaCharters is suing Orenburg Airlines for breach of contract. A contract was signed in August this year, initially to change the flight program and use a new plane, a Boeing 737-800, for the charter flights.

AviaCharters was supposed to suspend its flights on Sept. 1, but due to an issue with its agreement with Orengburgh, AviaCharters went offline two weeks before the intended date. AviaCharters is expected to go online on Oct. 27 if issues are resolved.

In an earlier interview, MVA managing director Perry Tenorio said that the pullout of the 186-seater plane impacted about 90 percent of arrivals from Russia.

AviaCharters concedes that the cancellations have impacted many Russian tourists and publicly apologized for the delay. It said that it will refund the money paid by tourists who have already made bookings and urged customers to contact their tour agents for compensation.

One MVA board member raised the issue between AviaCharters and some hotels in the CNMI, claiming the charter company owes these hotels “undisclosed” amounts under their contract.

MVA board chair Marian-Aldan Pierce said the issue on the contracts between AviaCharters and the hotels is not an MVA matter but between AviaCharters and the hotels.