MVA realigns funds to sustain promotions

With the $1 million cut in its $7 million budget for Fiscal 999, the Marianas Visitors Authority had to reprogram some of its remaining funds to be able to carry out its key projects this year, said Dave M. Sablan, board chairman. of the tourism office.

The 13.4 percent budget slash implemented by the Office of the Governor plus the 1 percent contribution to the Office of the Public Auditor resulted in a total reduction of $1,08,700.

Promotions for Hong Kong and Taiwan markets would have to wait for the next fiscal year since these are no longer included in the 1999 budget. Continental Micronesia had pledged to help MVA carry out its marketing campaign there with the absence of a representative office.

So far, MVA maintains only a representative office in Korea, the second biggest market of the CNMI. In Japan, MVA already hired AIM Corp. after it decided to close shop its representative offices in Tokyo and Osaka.

Strategically located in the three largest metropolitan areas of Tokyo, Nagoya and Osaka, AIM Corp. can more effectively service the needs of the travel industry and consumers on MVA’s behalf.

AIM Corp. will be exploring new and developing travel markets, in addition to its regular task of disseminating up-to-date information and strengthening contact with major travel industry players.

In addition, MVA has selected Dentsu Inc. 10 as its advertising partner in Japan for a budget of $1.9 million to help the island government redirect its previous marketing strategy by reestablishing the Northern Marianas as the destination of choice for would-be travelers from Japan.

Dentsu 10 had created the Saipan-Da character as the CNMI mascot to increase mind share as well as to reposition and differentiate the CNMI from other destinations. Saipan-Da will continue to be featured in various mass media across Japan, including major newspapers, magazines and train stations.

Furthermore, MVA will produce a comprehensive set of brochures and collateral articles that will ensure consistency in appearance and destination identification. Additionally, pins, stickers, stuffed animals and note pads, among others, will be widely disseminated to all travel agents in Japan to reinforce the new campaign theme.

As the CNMI government project a continuous decline in revenues, the MVA submitted a $5.88 million budget for FY 2000 to the Office of Management and Budget which is $1.11 million lower than the current budget.

While Sablan has expressed concern that a further reduction in budget would affect efforts to revive the ailing tourism economy, he said MVA will just have to be creative in maximizing the limited resources.

The board had reduced by $500,000 the advertising budget which will amount to $2.94 million for next fiscal year. It has also decided not to implement any pay increase, which would save some $100,000. Aside from this, MVA will carry out a freeze in the purchase of equipment and implementation of capital improvement projects.

Should there be an additional budget cut for next year’s appropriation, Sablan said MVA may be forced to reduce working hours to cut down personnel costs.

According to Sablan, MVA cannot afford to slash further the budget for promotions especially at this time when it is doing everything to survive the competition in the travel industry.

At the same time, MVA is pinning its hopes on Visit the Marianas ’99 Campaign which is meant to provide value to the CNMI as a destination.

In 1998, arrivals from Japan made up 75 percent of the 526,298 total in-bound visitors. Japan, the world’s second biggest economy, has been experiencing its worst recession since World War II.