February 2014 visitor arrivals up 8 percent

February 2014 visitor arrivals to the Northern Mariana Islands increased 8 percent compared to February 2013. According to the Marianas Visitors Authority, arrivals to the islands of Saipan, Tinian, and Rota registered 41,311 visitors in February 2014 compared to 38,350 in February 2013.
Arrivals from Japan dropped 25 percent in February to 11,165 visitors. A 22-percent decline in air seat supply from Narita impacted the Japanese market heavily, as Delta temporarily suspended its second night flight from Narita and several flights were disrupted due to heavy snowstorms in Tokyo during the month. The average occupancy of major Saipan hotels in February was in excess of 98 percent, and Japanese wholesalers have been struggling to secure rooms. Further weakness is anticipated in the Japan market from April when the consumption tax increases from 5 percent to 8 percent with weakness, continuing until new low-cost air carriers enter the Japan to NMI market this summer for the first time.

Arrivals from Korea rose 9 percent in February to 11,053 visitors. Dynamic Airways doubled the number of flights from Seoul to the NMI from two a week to four a week during the high season from Jan. 5 to Feb. 28, 2014, ensuring continued strong growth in arrivals out of the Korea market for the period. Dynamic Airways will, however, temporarily suspend the current flights from March 12 to April 26 due to low demand. Dynamic Airways has established a new Korea branch office at Incheon International Airport and will use this downtime to rework their strategies for the Korean market and develop a news sales and marketing action plan before relaunching the flights from April 26.

Meanwhile, arrivals from China jumped 42 percent in February to 15,295 visitors, the most of any source country. This growth was due in part to the Lunar New Year that took place in February this year, when outbound travel to all destinations worldwide from China rose 18.1 percent year-on-year. Travel to the NMI grew much faster year-on-year than to other competing destinations due primarily to the launch of new Dynamic flights by Century Tours from Hangzhou and Tianjin.

Arrivals from Russia grew 44 percent to 1,134 visitors in February. While the total number of outbound travelers from Russia to all destinations worldwide is now falling compared to the same period in 2013 due to the ongoing economic slowdown in Russia, arrivals to the CNMI continue to soar as a result of strong airlift from East Russia from AVIACHARTERS and Asiana Airlines. With the formal opening of the MVA’s Vladivostok office in February, active promotions targeting the East Russia market will be launched to sustain continued rapid growth out of the East Russia market during the coming months, although the lack of availability of hotel rooms in the CNMI remains a major concern for Russian partners in supporting continued growth out of the Russian market.

Economic highlights

The Japan Cabinet’s February report assessed the Japanese economy continues its recovery at a moderate pace. The yen dropped in value in early February and has since hovered around 102 to the U.S. dollar.

According to the Bank of Korea, the Korean economy is expected to post a year-on-year rate of growth in the upper 3-percent range, with growth in 2014 estimated to continue running at around the potential growth rate. The won/dollar exchange rate fell 7.92 over the past month to close at 1,067.58 won per dollar.

Chinese economists expect GDP growth to remain at 7.5 percent year-on-year for 2014, the same as in 2013, sustained by economic recovery in developed countries, slower RMB appreciation and growth in consumer spending. The Chinese currency Renminbi, or the yuan, weakened 8 basis points to 6.1192 against the U.S. dollar on Feb. 26, according to China Foreign Exchange Trading System. (MVA)