MVA swears cost-cutting to continue

The Marianas Visitors Authority has vowed to watch its expenses closely, as it approved a $6 million budget for fiscal year 2005.

MVA managing director Vicky I. Benavente said the agency plans to keep its personnel costs down by hiring no replacements for those who have resigned or otherwise left MVA, and by keeping travel expenses at the minimum.

Benavente noted that while MVA attends numerous international trade shows and marketing events annually, only $63,000 has been appropriated for travel in FY 2005. This comes in line with MVA’s resolution to send a maximum of two board members and two staff members to off-island trips.

“We will also monitor all expenditures of our off-island offices very carefully. We will make sure that we get the maximum amount of return for our investments,” she said.

MVA has offices in Japan, Korea, and China.

Like most agencies, MVA will continue operating under Public Law 13-24, pending the enactment of a new budget resolution. Passed in 2003, P.L. 13-24 actually appropriated $7 million for MVA.

However, only $5.957 million of this amount remains available to the tourism agency.

A total of $858,200 was deducted from MVA’s budget, after the responsibility of tourist sites maintenance had been transferred to the Department of Lands and Natural Resources.

Another $122,836 was cut from MVA’s funds pursuant to a provision in P.L 13-24 requiring each government agency to reserve two percent of its budget to help retire the government’s accumulated deficit. Also deducted from MVA’s budget was the mandatory one percent for the Office of the Public Auditor, amounting $61,418.

Advertising expenses make up $3.72 million, or about two thirds, of the budget approved by the MVA board of directors last week. Of this amount, some $625,000 will be used for advertising within the islands while the rest will go to promotions in the international markets.

The biggest advertising budget—at $1.78 million — was given to Japan, the primary tourism market of the Northern Mariana Islands. The emerging China/Taiwan market came next with $590,731, followed by Korea with $485,000. The balance will be shared by the United States, Guam, and other markets.

MVA earmarked $1.53 million for personnel expenses. The remaining $709,491 will go to other operational expenses.