MVA: Japan summit ends on a positive note

The Marianas Tourism Summit led by Gov. Juan N. Babauta was held on Friday, June 17, 2005 at the Dai-Ichi Tokyo, Japan.

The summit agenda included discussions on the economic and tourism impact of a Japan Airlines pullout, followed by the Commonwealth Ports Authority’s cost incentive program and ending with the Marianas Visitors Authority’s marketing incentive program.

“The programs are in place to encourage more business to the Marianas-Saipan, Tinian, Rota for the airlines and travel agencies. We are hopeful that these programs will benefit the CNMI tourism industry and minimize the impact of a JAL pullout,” said MVA managing director Vicky Benavente.

Several Japan key industry officials attended the summit to show support of the CNMI product as a prime destination for guests from Japan. They also were interested in learning what the government’s plans are to reduce the effects of a JAL pullout. CNMI participants included representatives from the Legislature, CPA, MVA, and the Strategic Economic Development Council.

Travel agencies that attended included representatives from HIS Co. Ltd., HIT Tours, HTM Co. Ltd., JALPAK Co. Ltd., JTB World Vacation, NTA, PMT Inc., and R & C Tours Co. Ltd. Other CNMI businesses that were present included DFS, Pacific Islands Club, and Dai-Ichi Hotel.

Representatives from Continental Airlines and Northwest Airlines were also present. The U.S. Embassy also had representatives who were present to show their support for the Marianas.

The summit ended on a positive note with several comments and points made by the participants. Comments and points are as follows:

* The effects of a JAL pullout can be summarized by a simple formula, JAL pullout equals reduction in seat capacity leading to a reduction in revenue.

* The CNMI has a natural beauty and is very attractive compared to other destinations.

* Gas price is quite high, therefore, incentives should be designed to counter the cost of supply. In addition, the destination needs to work on investment incentives as well as improve the destination quality.

* In order to reduce cost and increase yield the destination must improve quality keeping in mind what other competitors are doing. Hence, the air price determines the destination price.

MVA chair David Sablan ended the summit by expressing the MVA role and the initiative programs that the CPA and MVA presented to increase business by the airlines and travel agents to the CNMI.

According to Sablan, the CNMI’s economic survival relies heavily on Japanese visitors to the CNMI.

“The MVA will be working closely with industry partners from Japan and the Marianas to ensure that the Japan market remain our number one market. Ultimately, we will need to enhance the destination in order to be competitive; with such an investment, the value of the destination will be much higher,” said Sablan. (PR)