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CPA cuts harbor departure fee to $2.25
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Posted on Aug 07 2000
The Commonwealth Ports Authority Board has approved the implementation of Seaport Incentive Program which lowers the passenger departure fee at Saipan Harbor from $5.85 to $2.25 for one year, in a move to help the tourism industry cope with the decline in the economy.
CPA Seaport Committee Chair Francisco Q. Guerrero said the board made sure that such incentive will not hamper its debt service to the $33 million seaport bond.
Despite the slowdown in the island’s tourism economy, seaport operation has slightly shown improvement with the increase in visits by commercial vessels at Saipan Harbor.
There are currently 12 commercial boat operators using Saipan Harbor, with the Tinian Shipping & Transportation Inc. the biggest client as CPA earns $280,000 annually from their operation.
Tinian Shipping was seeking a reduction in passenger departure fee to $1 for two years but the board decided to implement an incentive for all its clients to avoid charges of discrimination.
Hong Kong Entertainment and its subsidiary, Tinian Shipping, wanted a two-year break to help them carry out a marketing campaign and charter flights to boost visitor arrivals on Tinian Dynasty Hotel & Casino. As a result of the downturn in the island’s economy, Tinian Shipping and the casino hotel have been having difficulty surviving.
The ports authority is charging lesser fees to its undeveloped areas such as Echo Dock, North and South Seaplane Ramps. CPA Executive Director Carlos H. Salas said development of these areas will be carried out soon by the ports authority.
CPA expects a 24 percent growth in revenues from its operation in all three seaports in Saipan, Tinian and Rota from $4.6 million this year to $5.4 million in Fiscal Year 2001.
The 24 percent projected growth in overall seaport revenues next fiscal year is expected to come from the new harbor fees implemented by the ports authority since July of last year, which saw an increase in all charges collected by CPA from seaport clients.
