‘China tourism market benefits whole CNMI economy’

The Chinese tourism market will not just benefit one or two companies in the CNMI—as some people believe—but the whole economy of the CNMI, according to Marianas Visitors Authority board chair Gloria Cavanagh on Friday.

Cavanagh pointed out that, based on numbers the MVA has collected, Chinese tourists coming into the CNMI outspend Korean tourists multiple times.

Cavanagh underscored the need to revive the Chinese market to help revitalize the CNMI’s tourism market during a public comments portion of the House of Representatives’ session last week. She urged the House to adopt House Resolution 23-19 to express support for the CNMI Economic Vitality & Security Travel Authorization Program, or EVS-TAP, a newly created visa program for tourists from the People’s Republic of China.

She said the resolution would also encourage the U.S. Department of Homeland Security to work with the CNMI government and its leaders to facilitate the responsible promotion of the Chinese tourism market.

At the same session, the House adopted House Resolution 23-19, which was introduced by House floor leader Rep. Edwin K. Propst (Ind-Saipan).

Before the House adopted the resolution, Rep. Vicente Camacho (D-Saipan) said MVA, the Hotel Association of the Northern Mariana Islands, and the Saipan Chamber of Commerce, all have accurate numbers of Chinese tourists that are coming into the CNMI.

“So the question is, do these three entities, to include Homeland Security and Immigration, have accurate numbers of tourists that overstayed or have not left the CNMI since their arrival into the CNMI?” asked Camacho.

During the public comments portion of the session, Cavanagh said House Resolution 23-19 also expresses support for Annex 6, which would exempt the CNMI from the cap on direct flights between the U.S. and China.

This arises out of Article 6 of the 2007 U.S.-China Air Transport Agreement, which states that the airlines of the U.S. may provide unlimited scheduled air services between three points in the People Republic of China and Guam and the CNMI.

Cavanagh said Annex Six basically gives the CNMI the opportunity to receive direct flights from China without having to go through the 2007 U.S.-China Air Transport Agreement between the U.S. and China.

She said this was basically an agreement that was done in 2007 because the CNMI was about to go through federalization to allow the CNMI to actually get these direct flights outside of this quota in order to have a sustainable economy.

The MVA board chair said some people have said this will only benefit two companies.

“That’s never been the case,” Cavanagh said.

When looking at higher-end hotels, she said, 40% of Kensington’s occupancy is made up of Chinese tourists, 30% of Aqua Resort’s occupancy is Chinese, and 70% of Hyatt Regency’s occupancy at any given point is Chinese.

She said Chinese visitors also actually go out and patronize other restaurants.

“They don’t have breakfast, lunch, and dinner at Hyatt or at Fiesta (Crowne Plaza Resort Saipan) all the time,” Cavanagh said.

She said Chinese tourists also go out shopping, so a very high percentage of DFS’ revenue is from Chinese market.

She pointed out that it was in the newspaper just a few months ago that the Chinese market outspends the Korean market three times when it comes to DFS.

Cavanagh noted that another fallacy is that the Chinese market is very cheap.

“The reason why you have these occupancy rates in the higher-end hotels is that they [Chinese] pay more,” she said.

Cavanagh urged lawmakers to study the tourism market and ask people who are actually in the market.

“The idea that it will only benefit two companies is wrong. The idea that that it’s not shared amongst all of the restaurants in Garapan and shopping is wrong,” she added.