MVA seeks $8 million budget for FY 2001

The Marianas Visitors Authority is seeking an $8 million budget for fiscal year 2001, a $2.2. million increase from this year’s budget.

MVA board chair David M. Sablan has expressed hope that the proposed budget will be approved by the Legislature without cuts so that they can effectively market the CNMI as an ideal destination in the Pacific. He warned that continuous budget cuts may affect current efforts to revive the ailing tourism economy.

MVA has been planning to tap its alternative markets — Hong Kong and Taiwan but the money for promotion is not even enough to pursue Japan and Korea, its main source of visitors.

MVA managing director Perry Tenorio has always emphasized the need for an aggressive marketing campaign which will help position the CNMI as a quality destination.

With the cutthroat competition in the travel industry, an effective marketing campaign will help the Northern Marianas in increasing its market share in Japan, the island’s main source of tourists.

MVA officials believe that there is an urgent need to create a distinct image for Saipan which will differentiate it from Guam, its main competitor.

Tourist arrivals in the CNMI have drastically declined since the Asian economic crisis begun in July 1997. Businesses believe that it will be difficult for the CNMI to go back to its pre Asian crisis boom when visitor arrivals reached 726,690, or a 66 percent jump over 1996.

Due to the currency devaluation of the Asian currencies against the U.S. dollar, traveling to the CNMI has become very expensive for visitors from Japan and Korea, while the destinations in Asia have become much cheaper.

In promoting the CNMI to Japan, MVA has selected Dentsu Inc., 10 as its advertising partner to help the CNMI redirect its previous marketing strategy by reestablishing the Northern Marianas as the destination of choice for would be travelers from Japan.

Dentsu 10 had created the Saipan-Da character as the CNMI mascot to increase mind share as well as to reposition and differentiate the CNMI from other destinations. Saipan-Da is currently featured in various mass media across Japan, including major newspapers, magazines and train stations.

For fiscal year 2000, MVA has decided to freeze pay increases, Capital Improvement Projects and purchase of equipment. Infrastructure projects were only carried out based on the availability of funds.