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MVA makes appeal against budget cut
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Posted on Jan 08 1999
The Marianas Visitors Authority will make a last ditch appeal to Gov. Pedro P. Tenorio to spare the agency from the 13.4 percent budget cut because of the tremendous effect on its promotional plans abroad.
Dave M. Sablan, board chairman, has expressed concern on the budget slash because MVA’s 70 percent share from the hotel occupancy tax will automatically be reduced as a result of the continuous decline in visitor arrivals. In 1998, hotel occupancy was only 45 percent, he said.
This means that MVA will lose some $938,000 from the $7 million approved budget for fiscal year 1999. Due to shrinking revenue brought about by Asia’s financial crisis, the governor had slashed the budget from $249.26 million to $216.75 million.
According to board member Marian Aldan-Pierce, the finance committee will analyze the effect of the budget cut and find out what areas in promotion can be reduced. She said the Department of Finance had already released the $1.7 million it owes to MVA for fiscal year 1998.
MVA will hire the services of a new advertising agency that will help market the Northern Marianas to Japan, the island’s main source of tourist. Since the Asian financial crisis began more than one year ago, the CNMI has suffered a double-digit decline in visitor arrivals.
The governor had earlier pledged not to include MVA from the budget slash because it will hamper the task of the agency to promote the CNMI. Unfortunately, the Office of Management and Budget has already informed MVA that it will not be spared from the planned reduction.
OMB special assistant Vicky Villagomez said MVA should get a written order from the governor that it is not included in the scheduled budget slash, otherwise, it will not be exempted. The budget office had already informed MVA that the reduction will be carried out in the remaining three quarters of fiscal year 1999.
The Department of Finance had already explained that other agencies would have to absorb higher reduction if the governor excludes government offices from the cut.
