SEDC: Want growth? Allot more funds for promotion

The CNMI Strategic Economic Development Council has emphasized the need for additional destination promotions in order attract an incremental 700,000 additional tourists over a five-year period through 2005.

At an SEDC meeting last March 27, Air Service Committee Chair Bob Jones disclosed that air carriers recently approached by the committee have stated additional promotions are critically needed in order for them to increase service to the CNMI.

According to Mr. Jones, airlines are unlikely to begin additional direct flights unless promotions can generate enough demand for airline seats.

Earlier this month, Mandarin Airlines suspended direct flights to Saipan from Taiwan. Mr. Jones further noted that chartered flights beginning April 1 by Continental Airlines from Nagoya could only be continued with adequate promotion.

Re-drafted CNMI legislation that would allocate approximately $200,000 annually in aviation fuel tax to the Marianas Visitors Authority for promotions was passed by the House of Representatives two weeks ago and is now before the Senate.

SEDC supports the original intent of this bill, which was to utilize all the funds from this source for badly needed promotional efforts of the MVA. An earlier version of the bill introduced in November had been amended by the Senate to fund separate MVA offices in Tinian and Rota.

MVA has also requested an additional $4 million for the agency’s FY 2002 budget.

According to Ports Authority Executive Director Carlos H. Salas, recent talks reveal carriers have a greater awareness of Guam as a destination than the CNMI.

SEDC has proposed to work with MVA in investigating the feasibility of joint promotions benefiting both the Northern Marianas and Guam. While some packages to Guam now offer day trips to Saipan, SEDC hopes to capitalize on joint promotions by extending the length of such visits.

In another move to generate visitor demand, Executive Vice President of Baldyga Group International Rizk Saad has assumed leadership of the new SEDC Attractions Committee aimed at identifying potential attractions suitable for the CNMI.

Balyga Group International is responsible for developing the SandCastle and operating Gameworks on Guam. The group is poised to bring a SandCastle show to Saipan once qualifying certificate regulations providing tax incentives are enacted.

During the meeting, SEDC also discussed the need to provide investors with assurance of investment stability and financial returns, especially through the extension of public and private land leases.

SEDC, comprised of private sector leaders and high-ranking public officials, aims to increase CNMI government revenues to $200 million by 2005 through industry development.