‘MVA still faces many challenges for its Korea and Japan markets’

Looking ahead to fiscal year 2024 and beyond in terms of marketing, the CNMI still faces a number of challenges, including the currency exchange rates, for Korea and Japan tourism markets, according to Marianas Visitors Authority managing director Christopher A. Concepcion.

Speaking at the House Ways and Means Committee hearing last Wednesday on MVA’s proposed budget for 2024, Concepcion noted that the strong dollar and exchange rates for both the Japanese yen and Korean won are working against the CNMI right now.

He said the high value of the U.S. dollar is making destinations like the CNMI much less attractive for visitors from Korea and Japan as they can get more for their money elsewhere in Asia.

He said interest rates in Korea are up and their airlines operating cost is getting higher.

Christopher A. Concepcion

Realistically, Concepcion said, the MVA’s budget has always been very low compared to competing destinations, forcing them to be very strategic with every dollar that they have.

“For example, Hawaii. The Hawaii Tourism Industry recently spent over $62 million to market just to the West Coast of the United States. That doesn’t even count their budget for Japan or elsewhere in the world,” he said.

For another, the Guam Visitors Authority has requested $29 million from their government for the next fiscal year.

“So we have major challenges in with our competing destinations,” he said.

MVA’s proposed budget for fiscal year 2024 is just $12.5 million. In fiscal year 2018, or pre-Super Typhoon Yutu and the COVID-19 pandemic, the MVA’s budget was at $15.7 million.

For the Japan market, Concepcion said the CNMI faces the same challenge with the exchange rate.

He pointed out that the Japanese are not traveling outbound in the numbers that everybody in the world hopes.

“That is a more challenge for us. There really is still a real fear of COVID in Japan, and families with children and seniors are very cautious about traveling overseas,” the managing director said.

For the next fiscal year, Concepcion said, they will continue to commit an overwhelming majority of their budget to marketing and promotions.

He reiterated that they always promote all of the islands in the Marianas as a multi-island destination.

Concepcion said if the CNMI can regain more air seats between the islands, more investment and destination enhancement, more collaboration with local operators for more optional tours and activities, they will see more interisland travels. “So, in other words, there really needs to be further development of interisland capacity, overall,” the MVA official said.

He said they have and will continue to target niche markets interested in diving, eco-tourism, memorial services and more. He said each island has its own unique appeal that MVA highlights, like with the recent outdoor electronic signboards advertising in Seoul and Busan, Korea late last year.

The outdoor electronic signboard ads in Seoul and Busan present the beauty of Saipan, Tinian, and Rota and encourage people to travel to the Marianas.

Concepcion said their outdoor ads and digital ads placed in the fourth quarter in 2022 increased traffic on MVA’s website by almost 2,000%.

“So it was a very successful program,” he said.

He underscored the importance of destination enhancement for the three islands for fiscal year 2024 as he also discussed their plans and projects for the islands.

Concepcion said the MVA, with its expertise in the travel industry, is the best entity to decide how those limited funds are used strategically and efficiently under these proposed programs and activities so that they have a clear and direct benefit for the tourism industry.