MVA: 35K visitors to CNMI in May 2016

Arrivals to the Northern Mariana Islands registered 35,466 visitors in May 2016, and so far this fiscal year, are just 3 percent behind the rapid pace of arrivals compared to the same period last year.

Arrivals from China were essentially flat, dropping 3 percent compared to May 2015 to 14,698 visitors as China’s outbound tourism market entered its low season. Dynamic Airways will be launching new charter flights from Nanjing to Saipan from July 5 through Aug. 29, as well as from Hangzhou to Saipan from July 16 until Oct. 9. In addition, Hong Kong Airlines will be launching charter flights from Hong Kong to Saipan beginning July 6, and Philippine Airlines launched regularly scheduled service from Manila on June 15, with both these service heavily booked by mainland Chinese visitors. As a result, the number of Chinese visitors this summer to the NMI is expected to rapidly rise.

Arrivals from Korea dropped 15 percent in May to 13,850 visitors. Asiana Airlines decreased its double daily service to one daily in late March but is expected to return to double daily service for Incheon-Saipan in the summer season. Arrivals from Korea are also projected to rapidly increase this summer with the June 9 launch of direct daily flights from Seoul by Korean Air’s low-cost carrier Jin Air.

Arrivals from Japan fell 32 percent to 4,417 visitors as the NMI continues to feel the effect of Delta Air Lines cutting its Narita to Saipan night flight in October, a move that dropped airlift from the Japan market to just one daily flight. Arrivals to the NMI from Japan were greater than the Delta seat supply because of Asiana Airlines charters from Narita and Kansai. Given this airlift crisis, Gov. Ralph DLG Torres, as well as MVA board chair Marian Aldan-Pierce, board member Chris Nelson, and MVA managing director Chris Concepcion met with Delta Air Lines and the key Japan travel agents in Tokyo in May to explore what can be done to rebuild airlift from Japan. The MVA’s Japan airlift development team is also negotiating with low-cost carriers from throughout Asia to step into the gap and launch new service from Japan to the NMI, with a concrete announcement of new service from Japan to the NMI expected this summer.

Source markets economic highlights
In its economic assessment for May, the Japanese government judged that the damage from the earthquakes that hit the island of Kyushu in April were not severe enough to alter its assessment of the economy, but said it is giving its “full attention” to the economic impact from the disaster.” The economy is in a moderate recovery, while weakness can be seen recently,” the Cabinet Office said in its monthly report.

The Organisation for Economic Co-operation and Development announced 2016 growth forecast for the South Korean economy to 2.7 percent, citing sluggish global trade and a slowdown in China. The average USD/WON exchange rate in May was 1,157.01 won, a slight increase from the April rate of 1,148.36 won.

China’s Ministry of Finance reported fiscal revenue rose 14.4 percent year-on-year to $238.8-billion in April. Fiscal revenue rose 8.6 percent in the first four months. The central parity rate of the Chinese currency renminbi, or the yuan, weakened 315 basis points to 6.5531 against the U.S. dollar, dollar, according to the China Foreign Exchange Trading System. (PR)