Merger of 2 Japanese firms to benefit CNMI

Merger of two Japanese companies in 2003 is expected to work to the advantage of the Northern Marianas, particularly in the drumming up of the local tourism industry which suffered huge losses due to the Asian financial upheavals in 1998.

The Kinki Nippon Tourist Co., and Nippon Travel Agency recently disclosed plans to merge by year 2003, placing well-known travel agency of West Japan Railway Co., as its conglomerate.

Pacific Development Inc. Vice President Jesus T. Guerrero said the merger of the two major Japanese companies will have a significant impact on the present economic condition of the Commonwealth.

Since revenues of the government rely heavily on tourism, the merger will back up efforts to encourage government policies favorable to increased tourist market in Northern Marianas.

Mr. Guerrero said the number of Japanese tourists is the basis for the Commonwealth’s economy and these tourists were brought in by fiercely competitive tour agencies like KNT and NTA.

“These companies put together tour packages, line up the flights and do their best to ensure their customers get the satisfaction and return for another visit to Saipan, Tinian or Rota,” the PDI vice president stressed.

Furthermore, these travel agencies pay for a large percentage of the promotional campaigns for the CNMI and back this up with lobbying efforts to encourage government assistance.

And with the slowdown in Japanese economy, Mr. Guerrero explained that competition has been tougher and that a merger may be considered as the best alternative to remain afloat.

“Competition is intensifying and the survival of travel agencies is at stake,” KNT President Hideo Takahasi disclosed recently in Tokyo. He added that the wide range of costs to be shared under the new arrangement of KNT and NTA, will include elaborate computer system for servicing customers.

The first organizational moves toward a company that will be known as Kinki will come next month and ends in January 2003. Kinki will come in second to Japan Travel Bureau, in terms of market sales and travel promotions.

The PDI vice president stressed also that the new organization will be a major muscle in driving the visitor numbers back up to what originally it was.

“KNT is making it clear they are ready to help the CNMI compete in the tourism marker of the 21st century,” he said adding that Commonwealth will continuously reap the benefits of continued promotion by a much stronger international tour organization. (EGA)