Tinian backs moves to increase MVA funding

There is a need to improve the revenue generating capacity of the government to ensure funding of $14 million for promotional activities of the Commonwealth’s tourism industry.

In fact, both the Senate and the House of Representatives should increase CNMI’s projected revenue to account for the needed funds intended to cushion Marianas Visitors Authority’s coffers.

In a letter to House Speaker Benigno R. Fitial, Tinian Mayor Francisco M. Borja urged the House of Representatives to support a bill seeking to restructure the organization of MVA in hopes to make it more effective.

The mayor cited the distinct set of tourism problems that Saipan, Tinian and Rota encounter and the need to implement a new workable approach that will accommodate the needs, concerns and interests of each islands.

“Tourism is the main industry of CNMI and it is paramount that the islands be more aggressively promoted to increase exposure,” the Tinian mayor said.

Unless these measures are immediately instituted, Tinian’s and Rota’s economies will continue to suffer either contraction, stagnation or snail-paced development, he added.

“The division of MVA’s funds into the satellite offices is based on a minimum funding level of $14 million which I strongly recommend for FY2002. We must remember that MVA is the only government agency that has the possibility of bringing in more revenue to CNMI coffers,” Mr. Borja stressed.

In fact, once this is done, the Commonwealth will be able to see increases in Business Gross Receipt tax, excise tax, hotel tax, employment tax, income tax, CAP head tax and a possible multiplier effect.

The proposed bill aimed to amend Public Law 11-15 which will provide the allocation of appropriated revenue to take into account the needs of each senatorial district and to re-organize the MVA to appropriately address the unique promotional needs of each island.

While Saipan promotes the beaches, diving, shopping and golf, Rota emphasizes an unspoiled island experience, a pristine environment, and concentration on eco-system. Tinian on the other hand, places its hopes on the gaming industry and historical sites relating to World War II.

The bill underscored that all three islands share some of the tourism attributes and incentives but significantly unique in several areas and should be promoted in a manner that reaches different target markets.

In addition, the bill seeks to accommodate different promotional needs by re-organizing the MVA and by formulating the allocation of appropriated MVA funding to ensure that funds are available to each island.

The proposed funding will be most appropriate for the promotional activities of the three islands. (EGA)