MVA: CNMI April visitor arrivals nearly flat

April 2014 visitor arrivals to the Northern Mariana Islands were essentially the same as April 2013. According to the Marianas Visitors Authority, arrivals to the islands of Saipan, Tinian, and Rota totaled 32,035 in April 2014, 1 percent lower than the 32,521 visitors received in April 2013.

Arrivals from Japan fell 26 percent versus 2013 to 6,962 visitors. This was driven by a 34.2-percent decline in air seat supply from Narita, which impacted the Japanese market heavily. Delta Air Lines temporarily suspended two night-flights per week from Narita, and with a reduction in charter volume, air seats in April from Japan fell from 13,568 seats in 2013 to just 8,925 seats in 2014. Japan continues to suffer from an airlift crisis, and urgently needs the entry of a low-cost carrier into the market as seen in the past 12 months in both the Korea and China markets. Weakness in April was also attributed to consumer sentiment toward the hike of Japan consumption tax from 5 percent to 8 percent effective April 1.

Arrivals from Korea dipped for the first time this fiscal year, registering 3 percent lower in April at 9,339 visitors. Many major Korean travel agents have struggled in the second half of April with a large number of cancelled or delayed tours to the CNMI in light of the ferry disaster on April 18. These cancellations have brought the country’s tourism industry to a grinding halt. According to major travel agents, about 50 percent of group travel package reservations from Korea to destinations worldwide were canceled after the incident. Industry insiders said the effects of the ferry disaster will last until June, when the social mood is expected to change after the regional election and the World Cup. Dynamic Airways also temporarily suspended flights from Seoul to Saipan beginning March 1 and operated only select flights during Korean Golden Week on April 30, May 2 and May 3. Dynamic Airways has not yet decided if their Seoul flights will be relaunched or if new flights will be launched from Busan, instead.

Meanwhile, arrivals from China grew 16 percent to 11,995 visitors, making China the largest source market for the CNMI in April. Century Tours suspended Dynamic flights from Hangzhou and Tianjin in March, but additional lift is projected to come online from Hong Kong to Saipan in May. Century Tours also plans to launch an additional two flights from Beijing to Saipan starting May 1, generating four flights a week from Beijing operated by China Eastern Airlines. The MVA is working with Century Tours to support this growth in flights out of the China market to the CNMI during the coming months.

Arrivals from Russia jumped 74 percent to 1,664 visitors in April, making Russia the top-performing market so far this fiscal year, with 40 percent growth compared to the same period in fiscal year 2013. With the Ukraine crisis driving an unstable political situation and overall economic slowdown in Russia, the MVA has been working actively with Aviacharter and Asiana Airlines to maintain stable demand for tours to the NMI.

Economic highlights

In April, the Japan Cabinet Office`s economic report stated that the Japanese economy is on a “moderate” recovery trend, citing that business investment, corporate profits, and the employment situation are all improving and consumer prices are rising moderately. The yen hovered around 103 to the U.S. dollar.

The Korea Stock Price Index fell to 1,920 on March 20. The index was negatively affected by worries about an economic slowdown in China and growing risks related to the Ukraine before rebounding, largely thanks to the expected influence of the economic stimulus measures in China and the ECB. The won/dollar exchange rate fell 38.65 over the past month to be closed at 1,030.18 won per dollar, its lowest level since the 2008 global financial crisis. (MVA)