HANMI braces for worst •Hotel owners say Asia not showing signs of recovery

Hotel operators are bracing for the worst next year as the financial chaos that began more than a year ago in Southeast Asia shows no sign of improvement, according to Ron D. Sablan, president of the Hotel Association of Northern Mariana Islands.

Asia’s economic problems dragged the Northern Marianas tourism economy into a double-digit plunge in tourist arrivals which resulted in an average occupancy rate of 50 percent for most hotels, he said.

In 1999, Sablan said hotel occupancy may dip further or remain the same as this year. He is however hoping that the tourism economy will show some sign of improvement towards the end of 1999.

Economists predict a further deterioration in 1999 as Asian economies plunge deeper into recession and as Japan, the world’s second biggest economy, struggles emerge from its worst downturn in 50 years.

The bleak outlook for next year, Sablan said, was primarily due to the continuing effect of the regional crisis on the CNMI which is beyond the control of government officials.

“Hopefully, something positive will happen with the Visit the Marianas ’99 program,” he said.

Various activities have been lined up by the Marianas Visitors Authority for next year in a move to provide excitement to tourists who have become more discriminating in their choice of destination as neighboring Asian countries offer cheaper packages.

Japanese travelers alone have turned to Korea since a three-day four-night package tour can be had for as low as $250. In a move to save the half-a-billion dollar tourism industry and its huge investment on the island, Japan Airlines has carried out its own marketing campaign.

Japan, the main source of tourists, is in its worst recession in decades. Consumers are gloomy, companies are going under. Retailers are worried that the unless the economic outlook improves immediately, consumers will likely tighten their purse strings in coming months. This could be bad news for owners of luxury shops.

Since the beginning of 1998, many businesses have closed shop as retailers have felt the brunt of the impact of the financial crisis which began in Asia 17 months ago.

MVA has been trying to develop alternative sources of tourists in the Northern Marianas in a move to widen its market base. This include a more focused campaign to lure more tourists from Hong Kong, Taiwan and find ways on how to get visitors from mainland China to come to the CNMI.