MVA to Reyes: Overseas spending worth it

The Marianas Visitors Authority’s spending to promote the CNMI as a tourist destination has netted major projected returns in tourism dollars for the Commonwealth, MVA says in a letter responding to an inquiry by Rep. Joseph Reyes (R-Saipan).

Reyes, chairman of the House Committee on Commerce and Tourism, in a June 23 letter raised concerns MVA’s offices abroad may “not be generating the returns necessary to justify their operational expenses” and asked the agency to provide key financial data. In addition, Reyes questioned whether MVA is doing enough to help local tourist attractions gain new customers.

MVA has offices in Japan, Korea and the Philippines and, according to its July 3 response letter, devotes 61 percent of its budget—$3.775 million—to advertising and promotions. Yet that investment appears a paltry sum compared to the projected returns in additional tourism spending MVA’s efforts abroad have garnered for the CNMI.

New flights from key Asian markets like Japan, for example, are worth millions to the Commonwealth. The Saipan-bound flights from Tokyo that began this month—secured through MVA’s efforts—are worth an estimated $85 million in tourism spending, assuming 85 percent of seats are sold, the letter notes. Furthermore, the recently launched flights from Osaka, also gained through an MVA initiative, carry a value of $75 million in estimated tourist dollars.

The letter stops short, however, of defining the timeline—whether annual or over several years—for the values MVA assigns to the flights.

Meanwhile, MVA’s advertising efforts have gained significant exposure for the CNMI abroad at a small cost, the letter adds.

“Excluding the projected economic impact from the new air services, our offices in Japan and Korea were able to generate $17 million in exposure from a combined budget of $2.89 million,” the letter says. “This is a 588 percent return for each dollar we invest in these two markets.”

Answering Reyes’ questions on promoting local tourism attractions, MVA responds in the letter it has “never insisted that our travel partners patronize a particular company” but adds that it is poised to propose a CNMI Tourism Attraction Fair in the future where tourism businesses can promote themselves to travel companies from Japan, Korea and China.

In related news, MVA in a meeting this week elected the officers who will serve on its board, according to director Perry Tenorio. Jerry Tan will serve once again as the board’s chairman. Marian Aldan-Pierce took the vice chairmanship. Kazusuke Fukuju won the secretary’s seat and Yoichi Matsumura won the seat of treasurer.