MVA: We respect CPA’s prerogative in increasing rates

The Marianas Visitors Authority says it respects CPA’s decision to increase rates, however, airlines have expressed concerns.

In an interview with MVA managing director Chris Concepcion, he said MVA respects and understands why CPA needed to increase their fees significantly during these tough times.

“We respect CPA’s prerogative in increasing rates. We understand that they have an organization to run, and they need to recoup their costs. We respect their stance on it,” he said.

However, during a regular board meeting yesterday, South Korea travel partners expressed their concerns for CPA’s recent increase.

Specifically, low-cost carriers traveling to the CNMI from South Korea are expecting to pay $3,000 more per flight once these new rates are implemented next month.

Concepcion reiterated this in his interview.

“Of course, here at the MVA, we hear the concerns of the airlines separately from what CPA hears and of course they’ve indicated their concerns that increasing costs of operating at the Saipan airport is going to affect their bottom line and profitability of this route,” he said.

Concepcion said MVA is trying to find ways to allow CPA to recoup its cost while also helping airline and travel partners.

“So, we communicate closely with our partners at CPA and the airlines and we’re going to try to find a way to make this work for everybody. We’re in close communication with the administration as well. The governor’s office has indicated their support to see what we could do to make sure that if there’s an increase, someway somehow, we balance it out so we don’t lose the momentum we have right now and the number of tourists coming into the CNMI,” he said.

Last month, CPA adopted a new rate methodology that reflects a whopping 90% increase in landing fees and a 79% increase in terminal rental fees.

Specifically, CPA 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 Francisco C. Ada-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.

In addition, CPA also increased the current parking rate at the Francisco C. Ada/Saipan International Airport parking lot.

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

Christopher A. Concepcion