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Hotels see slight occupancy boost in April
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Posted on Jun 06 2008
Hotels on Saipan saw a slight rise in occupancy in April, according to recently released statistics, yet a key expert cautions the increase is still short of a profitable margin for the hotel sector.
Statistics from the Hotel Association of the Northern Marianas Islands show hotel occupancy rates rose to 55.34 percent, a jump of about 6 percentage points over the same month last year. The rise appears largely due to an influx of Asian tourists, yet it is not enough to revive the island’s hotel industry, according to the association.
“We attribute the slight improvement mainly to the Korean, Japanese and Russian markets,” association chairwoman Lynn Knight said. “Historically, the month of April is not the best month for tourism, particularly with the rising costs of doing business.”
Knight noted that to remain profitable, the island’s hotels need roughly a 70-percent occupancy rate. However, the pending start of added nighttime flights to Saipan from Narita, Japan, will provide the island’s hotels an added boost, Knight said.
Asian tourism has increased at a significant rate this year, she added, pointing to Marianas Visitors Authority figures showing a 41-percent spike in Korean tourists during April compared to last year and a 9-percent jump among Japanese visitors. Saipan also saw a 127 percent increase in American tourists over last year, which may be attributed to military staff visiting or the recent Flame Tree Festival, Knight said.
Nevertheless, the island’s tourism sector appears struggling when compared to figures from Guam’s hotels. April statistics from the Guam Hotel and Restaurant Association show a 70 percent average occupancy rate, down 2 points under last year.
