Visitor arrivals still recovering

According to the Marianas Visitors Authority, arrivals to the islands of Saipan, Tinian, and Rota posted incremental recovery in February 2019 following Super Typhoon Yutu, which hit the destination in October 2018.

Bouncing back from an 88-percent drop in arrivals in November 2019, February 2019 arrivals reached 38,049, 28-percent lower than last February’s mark.

“Recovery from Yutu continues at a steady pace, but we were also strongly affected in February by the lack of direct flight service from Japan and fewer flights from Korea compared to February 2019,” said MVA managing director Christopher A. Concepcion. “We are looking forward to more improvements in late March, when Skymark Airlines will operate six charter flights from Japan and T’way Airlines will complete the resumption of flights from Korea since Yutu.”

Although Japan posted a 79-percent drop in February to 983 visitors, compared to January 2018 when daily flights operated from Tokyo-Narita International Airport, prospects for the market are bright with the commencement of direct flights from Tokyo with six charter flights on March 22-27, 2019, by Skymark. Package sales by travel agencies JTB, H.I.S. and KNT are sold out for the initial flights, and four additional charters are being planned for Japan’s Golden Week holiday period on April 27-30. March arrivals will also see a boost from participants in Saipan Marathon 2019 and an 80-member incentive tour group. The airline is also slated to start regular daily flights in summer 2019, marking a much-anticipated turnaround for the once-dominant market.

Arrivals from China reached 19,567 in February 2019, 17-percent lower than the previous year, largely due to a weak domestic economic environment and residual negative impact from Super Typhoon Yutu. Weak purchasing power delayed people’s decisions to travel, and the typhoon has left lingering concerns about local infrastructure, including the facilities at the Francisco C. Ada/Saipan International Airport. Facing the coming off-season, the charter companies and travel agencies are promoting special rates and packages, with more focus on customized MICE groups. The MVA is also enhancing its promotions in China, with Xi’an Silk Road International Exhibition in March, road shows at Qingdao and Jinan in April, and promotions with Tuniu X Chow Tai Fook to attract wedding and honeymoon tourists.

“The China market represents a very significant portion of all visitor arrivals to The Marianas,” said Concepcion. “At this critical time, it is more important than ever for the MVA to ensure that The Marianas is aggressively promoted and marketed in China and our other major markets. There are hundreds of other beach destinations in the region, and we are making strategic use of our reduced funding to convince travelers to choose The Marianas. More visitors mean more revenue for government and businesses, alike. We really cannot afford to jeopardize that.”

Arrivals from Korea posted another month of double-digit recovery since Yutu, but were still 32-percent lower than February 2018 at 15,287. Last to resume flights since Yutu will be T’way Air, which is scheduled to resume five times weekly from March 31, increasing to daily flights on May 30. Asiana Airlines has also temporarily reduced it aircraft size with a corresponding reduction in seats from 250 to 177 per flight.

Source markets economic highlights

Overseas spending by South Koreans reached a new record high last year as international travel becomes an increasingly common way to take holidays. The average USD/WON exchange rate in February was 1122.30 won, a slight increase from the previous rate of 1120.44 won in January.

In January 2019, the nationwide consumer price index in China increased by 1.7 percent compared to the previous year. It has been more difficult to recruit tourists to visit Saipan during winter vacation and the Spring Festival compared to previous years. Normally, flights would be full one month prior to the departure date. In 2019, the flight sold out only 10 days prior to the departure date, and there were several flights with occupancy of less than 80 percent. The main factors for the slow sales are poor domestic environment and Yutu Typhoon in the last year.

Japan’s consumer price inflation inched lower to 0.2 percent year-on-year in January 2019 from 0.3 percent in the previous month and in line with market expectations. It was the lowest inflation rate since October 2017. Japan National Tourism Organization reported that the number of Japanese overseas travelers was up 2.0 percent year on year, reaching 1,452,200 in January 2019. (MVA)