MVA: $2.6M appropriated budget inadequate

The Marianas Visitors Authority is up in arms after the House of Representatives only appropriated $2.697 million to the tourism body for fiscal year 2024-2025.

Following yesterday’s board meeting, MVA managing director Christopher A. Concepcion said the budget they would be getting for the coming fiscal year is simply inadequate to carry them through 2025.

“We cannot manage anything with that kind of money,” he succinctly said as $2.697 million is a mere 1/12th of what MVA originally asked for which was $12.5 million.

With less than $3 million for FY2024 to FY-2025, he added the funding won’t be enough for MVA’s plans to boost tourism not only from its current markets, but expand the marketing of the CNMI as a tourist destination to other regions.

Coming into budget deliberations, MVA justified the $12.5-million budget ask since half of that funding will be coming from the Hotel Occupancy Tax with the other half coming from local appropriations.

MVA chair Gloria Cavanaugh agreed with Concepcion and said the tourism body is actually entitled to 80% of the Hotel Occupancy Tax by law.

“That’s below what we’re looking as far as our projections go for the 80% of the Hotel Occupancy Tax, which is by law, [Public Law 18-1] which gives us the 80% of the Hotel Occupancy Tax. So based on our projections, that’s where we go to almost $6 million that we would be collecting for MVA’s budget. We did ask for an additional appropriation of $6 million. Of course, that would put us into basically full gear to try to go after hopefully a third market. Unfortunately, it doesn’t look like we’re going to get that appropriation, but we need at least the 80% of the Hotel Occupancy Tax.”

She added that with just a $2.697-million budget, the MVA will essentially have its hands tied behind its back when it comes to promoting the CNMI to new markets.

“That will only pay for offshore offices or offshore marketing. It’s impossible to actually manage with that amount… During COVID-19, when everything was closed down that’s almost exactly what we got. But now that we’re open, we actually need marketing funds and that doesn’t cut it.”

Ultimately, Concepcion said the MVA wants to improve the CNMI as a destination, but with an inadequate budget for the coming year, that seems off the table as well.

“There’s a lot of work that needs to be done. At the end of the day, we’re hopeful that the House and Senate understand the importance of the work that the MVA does for the economy and that we can’t do this work without active funding. So, if they give us the 80% of the Hotel Occupancy Tax, that will help us continue on with our mission,” he said.

As the lone economic driver of the CNMI, the MVA is vital in the recovery of the islands’ economy, but it won’t be able to fulfill that task without adequate funding.

“Our goal is always to increase visitor arrivals to sustainable levels where the industry is able to breathe and generate sufficient revenue to fund operations and improve properties. Our goal is to increase visitor arrivals so that we get more of them at the time and that helps fund our marketing efforts overseas,” said Concepcion.