January 2014 visitor arrivals up 6 percent

January 2014 visitor arrivals to the Northern Mariana Islands increased 6 percent compared to January 2013. According to the Marianas Visitors Authority, arrivals to the islands of Saipan, Tinian, and Rota registered 41,681 visitors in January 2014 compared to 39,391 in January 2013.

Arrivals from Japan dropped 20 percent in January to 12,107 visitors. A 20-percent decline in air seat supply from Narita impacted the Japanese market heavily. In addition, the depreciation of the Japanese yen by 18 percent over the past year versus the U.S. dollar has made travel to the NMI for Japanese effectively 18 percent more expensive this January than in January 2013. Also, the average occupancy of major Saipan hotels in January was in excess of 93 percent, and Japanese wholesalers have also been struggling to secure rooms.

Arrivals from Korea rose 4 percent in January to 13,829 visitors, more than any other source market. Dynamic Airways doubled the number of flights from Seoul to the CNMI from two a week to four a week during the high season from Jan. 5 to Feb. 28, 2014, which is ensuring continued strong growth in arrivals out of the Korea market for the period.

Meanwhile, arrivals from China jumped 60 percent in January to 12,480 visitors. Charter flights by Dynamic Airways from Tianjin and Hangzhou were launched in January 2014, flying every five days to the NMI. In conjunction with Century Tours, the MVA China office is now planning a series of media and trade promotions in support of the new flights. Continued strong growth in arrivals out of the China market is projected for February with Lunar New Year.

Arrivals from Russia grew 11 percent to 1,156 visitors in January. 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. However, due to the limited availability of hotel rooms in the Northern Marianas, AVIACHARTERS has just announced the launch of charter flights from East Russia to Guam; this is a long-term competitive concern of the MVA until the lack of hotel rooms in the NMI has been addressed.

Economic highlights

The Japan Cabinet’s December report assessed the Japanese economy is recovering at a moderate pace, the highest assessment in six years. In January, the yen increased in value against other major currencies. As of Jan. 31, 2014, exchange rates stood at 102.68 yen to the U.S. dollar. Japan’s largest travel agent JTB predicted 17.8 million Japanese will travel internationally in 2014, a 2.1 percent increase from 2013.

The Korean government recently announced its Economic Directions for 2014 to boost economic demand, remove regulatory obstacles, and revitalized corporate investment. The won/dollar exchange rate rose 24.42 over the past month to close at 1,075.50 won per dollar. The total number of Korean outbound travelers in 2013 was up 8.1 percent compared to 2012.

The China Ministry of Finance said the country’s fiscal revenue climbed 10.1 percent year-on-year to 2013 to reach $2.11-trillion. According to the China Foreign Exchange Trading System, the Chinese renminbi rose 72 basis points to 6.1035 against the U.S. dollar on Jan. 24, 2014. The Tourism Research Center of the Chinese Academy of Social Sciences said China had the world’s highest number of outbound tourists and largest amount of overseas spending last year. (MVA)