MVA mulls renewing ad contract with Japan firm

Concerned about low arrivals from the Japan market, the Marianas Visitors Authority is reconsidering the termination of its advertising contract with the Japanese company Atatsu DK Inc.

MVA’s initial contract with Atatsu DK, which cost $921,000 and took effect on Feb. 1, 2004, expired on Dec. 31, 2004. The tourism office was not able to renew the agreement after the money supposedly for the advertising company was shifted to the opening of the China market as well as MVA’s participation in a travel fair sponsored by the Japan Association of Travel Agents.

MVA managing director Vicky I. Benavente reported that only about $450,000 of the Atatsu DK funds remains available.

In a recent meeting, members of the MVA board of directors stressed the importance of keeping the advertising contract, especially in view of the dwindling tourist arrivals from Japan which is the Northern Marianas’ primary tourism market.

The board instructed MVA management to negotiate a deal with Atatsu DK and get the company to continue providing advertising services within MVA’s limited funding.

Under the expired contract, Asatsu DK was responsible for developing and implementing MVA’s advertising activities within the Japan market, as well as overseeing the production and updating of the tourism agency’s website.

Another company, Marketing Garden Ltd., provides MVA with marketing and public relations services within Japan.

In related news, the MVA board approved last week the release of $71,960 for various public relations and advertising projects.

Of the total amount, $30,360 will be used to have Atatsu DK maintain and update MVA’s Japanese website for calendar year 2005. Another $21,600 will be spent on search engine optimization, which would place MVA’s Japanese website in the top 10 list of seven major Internet search engines.

The remaining $20,000 will be used to fund the volume incentive program, which MVA will be undertaking in collaboration with Asiana Airlines from March through May 2005.

Under the program, travel agents which make 10 or 20 percent more than their regular sales receive advertising support from MVA and incentive tickets from Asiana Airlines. The program was initiated to lure more Korean visitors to the NMI, as well as to stimulate continued traffic between Korea and the CNMI.