China market continues to show interest in returning to CNMI 

Despite Gov. Arnold I. Palacios’ previous decision to pivot the CNMI away from its long-standing relationship with its China tourism market, tourists from the islands’ previous main market still continue to show interest in returning. 

According to a letter from Hong Kong Airlines addressed to the Commonwealth Ports Authority, they are interested in resuming flights to Saipan come November. 

“Our company is planning to fly to Saipan again this year in November. I am writing this [letter] to you for the potential opportunity to [work] with [CPA] again,” the letter stated.  

Hong Kong Airlines is only one of several other China-based airlines who have shown interest in flying to Saipan since the United States lifted COVID-19-related measures for visitors from China. 

However, Palacios seems adamant to uphold his recent decision to pivot away from the market, which made up over 40% of the CNMI’s tourism industry pre-COVID, despite various sectors in the CNMI pining for the market’s return. 

The entire CNMI economy continues to hurt due to the loss of the market and the lack of a replacement. 

The Palacios administration did previously spark hope for the CNMI economy by expressing its plans to launch military tourism, but to date, there has been no new updates on the market. 

Currently, due to the lack of airlines coming in, CPA has raised its rates significantly, it has implemented a reduction in hours for its employees, and has suspended its incentive program that once enticed new airlines to do business with the CNMI. 

CPA chair Kimberlyn King-Hinds said in a previous interview that these newly adopted changes do not work to entice airlines to do business with the CNMI, but unfortunately, until a new market comes online or the China Market returns, the board’s hands are tied. 

According to Saipan Tribune archives, CPA recently adopted a 90% increase in landing fees for both the Saipan airport’s main terminal and the commuter terminals for Saipan, Tinian, and Rota.

In addition, the CPA board also adopted a 79% increase in its current terminal rental rate for both the Saipan International Airport’s main terminal and for the commuter terminals for Saipan, Tinian, and Rota.

With the newly adopted budget, the CPA terminal rental rates for the Saipan International Airport’s main terminal goes up from $19.49 per square foot to $34.92. Meanwhile, the terminal rental rates for all CNMI commuter terminals is now up from $7.79 to $13.97.

As for landing fees, with the 90% increase, CPA will now be charging international airline carriers $15.25 per thousand pounds of certified maximum gross landing weight of the aircraft; they were previously being charged $8.01. As for CNMI commuter terminals, the 90% increase would bring landing fees up from $4.81 to $9.15.

Aside from the increase in rates, the CPA board also adopted an eight-hour cut for all CPA employees and suspended its airline incentive program.

All these changes will take effect come fiscal year 2024, which starts on Oct. 1, 2023.