Hotel occupancy rate drops to eight-year low

Overall hotel occupancy rate for the month of February 2000 was registered at 69.32 percent, the lowest ever recorded in the past eight years in the Northern Marianas.

This is just a slight drop from the previous record of 69.48 percent in February 1999.

The Hotel Association of Northern Marianas has expressed disappointment over the recent occupancy record since February is usually a peak period as Japanese travelers flock to the CNMI to escape the harsh cold weather.

Hotels, likewise, have been dropping their rates in order to increase demand as well as survive the slowdown in the island’s tourism economy.

For large hotels alone, occupancy rate for the month of February 2000 was 70.62 percent compared to 71.47 percent for the same period of the previous year. Small hotels, establishments with under 200 rooms, registered a 63.33 percent occupancy rate also for February of this year, a big jump from 50.01 percent in the same month of the previous year.

Average monthly room rate for all hotels for the month of February dropped only by $4 dollars or $88.38.

For large hotels, the room rate dropped by $3 this year as it registered only at $90.61 compared to February 1999.

Similarly, small hotels have been continuously dropping their room rates to stay afloat amid the economic downturn, offering an average of $76.93 which was a big decline from the previous record of $90.66 for February 1999.

While the demand for travel in Japan has been increasing, hotel managers said the limited capacity in airline seats remains the biggest problem in taking the CNMI out of the economic slump.

HANMI believes that the best way to increase air seats is to create a demand on the destination which means carrying out an effective marketing campaign in selling the CNMI.

The hotel association has praised Japan Airlines for its decision to reduce air fare by as much as 70 percent for its charter flights from major Japanese cities starting next month as part of its commitment to bring in more tourists to the island.

In a letter addressed to JAL district manager Yukihiru Enomoto HANMI board members said “these actions show real commitment from your airline to promote the Northern Mariana Islands as a world-class tourist destination.”

JAL will introduce a special rate for Japanese tourists coming from Tokyo and Osaka cities.