HANMI offers its knowledge base to NMI govt

The Hotel Association of the Marianas Islands believes that temporarily suspending all new flights into the CNMI is a “smart move” and has offered its help to the local government as it assesses the capacity of the CNMI to accommodate more tourists.

“The moratorium is a smart move. We have tourists walking in suitcases on Beach Road and Middle Road and it is not a good sight. We have hotels that are booked all the way until September. For this calendar year, the major hotels have reported their numbers to us and we are at an occupancy average of 92.29 percent,” said HANMI chair Gloria Cavanagh.

She acknowledged that hotel rates are at an all-time high. “The rates that we have this year are just record breaking. The beginning of 2013 is when the market started going up again for the hotels. But in 2016 and this year, the leap was just tremendous.”

HANMI believes the 60-day suspension is necessary and came at the right time.

“We support the ban for 60 days for new flights so that all of us can strategically plan on what to do. HANMI can help, [the Marianas Visitors Authority] can help. It would be good for the government to go straight to the sources because we can provide studies and numbers.”

“The moratorium also came at the right time as well because by September and October, we go into slow season. Hotels will have rooms to accommodate the flights in but until then, July and August have always been the busier months because its summer,” Cavanagh said.

On its own, Cavanagh said, that the hotel industry has been expanding. Currently, new hotel projects in the CNMI are underway. “There are projects that are already in the pipe. …Some are under construction and some not nearly under construction. But it goes to show that there are more hotels are being built.”

Among the ongoing hotel projects are the Imperial Pacific Resort in Garapan, a 500-room hotel in San Roque that is scheduled to come online in 2018, and the Ocean Vista project on Capital Hill.

“We also welcome the birth of [bed-and-breakfast rooms] and guest houses on island. They help in the accommodation problem we now face. But I do hope the government is true to its word as far as enforcement of hotel occupancy tax. Everybody has to contribute to the economy.”

Once the moratorium is lifted, Cavanagh believes the CNMI can handle an additional one to two flights from different destinations.

“Sixty days is enough and ideal because it goes through the period that is already very busy. When it is lifted, adding one or two flights from particular destinations that have high yield would be ideal. We can’t rely on just one or two, especially one that can be cut at any time. We can’t rely on just one market, like the time we relied on the Japanese market. When they pulled out, we were left with no options. We need to make sure we have a healthy diversity,” she said.

Hotels in the Commonwealth look at Russia as a lucrative market. “It’s not the numbers but they stay longer and spend a lot of money while on vacation, which is good for tourism. We also hear that the Japanese market either from Nagoya or Osaka will come in. We have to look at these opportunities and have a strategy,” Cavanagh said.