October visitor arrivals increase by 12 percent

October 2014 visitor arrivals to the Northern Mariana Islands jumped 12 percent compared to October 2013. According to the Marianas Visitors Authority, arrivals to the islands of Saipan, Tinian and Rota registered 35,587 visitors in October 2014, compared to 31,866 visitors received in October 2013.

Arrivals from China grew 55 percent in October to 13,963 visitors. Charter flights from the country were fully booked during China’s National Day holiday from Oct. 1-7. To further stimulate demand, the MVA participated in the China International Travel Mart on Nov. 14-16, promoting the tourism resources of Saipan, Tinian and Rota.

Arrivals from Korea grew 10 percent in October to 12,557 visitors. The increase was largely due to Jeju Air’s inauguration of direct flight service from Seoul beginning Oct. 1, providing an additional 1,323 air seats each week to Saipan. Also, Asiana Airlines resumed flight services to Saipan on Oct. 21 after a temporary suspension on Oct. 14-20.

Arrivals from Japan fell 19 percent to 6,511 visitors in October. However, Japan Airlines will operate two direct charter flights from Chubu Centrair International Airport on Dec. 27 and Dec. 30 using a Boeing 737 aircraft, providing 288 additional seats. The tour will be sold exclusively by JTB World Vacations.

Arrivals from Russia fell 69 percent to 237 visitors in October following the suspension of direct flights in August. Established Japanese tour operator H.I.S. will commence charter flights to Saipan from Vladivostok and Khabarovsk beginning February 2015, with ticket sales underway since Nov. 17.

Economic highlights

In its most recent monthly economic report, the Japanese government said the overall economy was recovering moderately, though “weakness can be seen recently.” Since that report, the country has slipped into recession. The yen appreciated against the dollar, from 109.42 yen to the dollar at the end of September, to 108.17 yen as of Oct. 29.

Korea’s real GDP grew by 0.5 percent in the second quarter of 2014 compared to the previous quarter. Korea’s economic recovery continues as industrial activity improves from a slump in April and May; employment remains stable. The South Korean won/dollar exchange rate rose 5.4 won over the past month to close at 1051.64 against the U.S. dollar.

Switzerland-based lender Credit Suisse said with its strong economic growth, rising asset values, and currency appreciation, China ranks third after the U.S. and Japan, in terms of number of citizens among the world’s richest 10 percent. The value of the Chinese currency renminbi, or the yuan, weakened by 47 basis points to 6.1455 against the U.S. dollar in its central parity, according to the China Foreign Exchange Trading System.

The ruble/US$ rate broke its historical maximums, reaching 43.39 on Oct. 31, 2014, (+10 percent vs. Sept. 30, 2014, and + 33 percent vs. January 2014). Russian currency is negatively affected by the geopolitical situation in Ukraine. According to experts, GDP in 2015 will decline by 2 percent, economic growth will be at 0.8 percent, investments will decrease by 9 percent, and U.S. dollar will reach 44 rubles. (MVA)