MVA scrambles to keep JAL

The Marianas Visitors Authority is determined to pull a few strings to keep Japan Airlines flying to Saipan.

In an emergency meeting yesterday, the MVA board of directors urged the Governor’s Office to lead a delegation of CNMI government officials and tourism industry leaders to Tokyo to plead the Commonwealth’s case to JAL officials and, if possible, the Japanese government.

The board also asked the governor to enlist the help of the U.S. Embassy, particularly the United States’ commercial attaché in Japan.

“This is a top priority mission and we will need the U.S. Embassy to help us arrange the high level meetings. If we need help from the U.S. State Department or the [Department of the] Interior, we will ask them, too. But definitely, we will appeal to all our friends in Japan—from the members of the National Diet to the tour agencies,” said MVA chair David Sablan.

MVA is pushing for the trip to take place this week or as soon as possible, depending on the availability of the concerned officials in Japan. Sablan said he wanted the meetings to occur before JAL makes its official announcement on the planned pullout in July.

“We want our action to be preventive, not curative,” Sablan said.

JALWays, which operates 14 weekly flights to Saipan from Tokyo and Osaka, has indicated plans to suspend all flights to Saipan due to rising operational costs. The air carrier is expected to issue an official notice in early July and execute the pullout starting October 2005.

The airline’s plan has caused alarm for the local tourism industry. About 50 percent of the Japanese visitors to the CNMI reportedly take JALWays flights. Japan is the Northern Marianas’ primary tourism market, comprising 70 percent of the total arrivals to the islands.

“JALWays’ suspension of flights to Saipan is going to be a big blow to the economy, especially with us facing the paring down of the garment industry. We will see a reduction of roughly 45 percent of total arrivals from Japan if JALWays stops flying to Saipan. This will surely cause devastation to our economy,” Sablan said.

He added, “I hope JAL and the people of Japan will give it serious thought before deciding to cease operations on Saipan. For decades, Japan has played a major role in our economic development. The foreign investments here are predominantly Japanese-owned. Japan has a moral responsibility to the people of the CNMI because, at one point, these islands were under the government of Japan.”

Sablan noted, however, that the CNMI’s lobbying efforts concerning JAL would be treated as a separate matter from the impending visit to Saipan by Japan’s Emperor Akihito and Empress Michiko.

“The Imperial Couple’s visit is a somber occasion. The CNMI will not use that visit as a means to further promote the CNMI. That’s a different agenda. We will try to get help from the media that will be coming before and after the visit, but not while the Emperor is here,” Sablan said.

Hotel industry expresses alarm

A total pullout by Japan Airlines from Saipan will significantly impact the CNMI’s hotel industry, which heavily relies on the Japanese tourist market for its occupancy.

News about the possible pullout of JAL or the eventual reduction of flights to Saipan prompted board members of the Hotel Association of the Northern Marianas to discuss the issue.

HANMI president Lynn Knight said yesterday that the association would support efforts by the MVA and other tourism players in addressing the problem.

“We are deeply concerned about this. JAL has been a major contributor to tourism for many years,” Knight said. “Any news of airline service being reduced—it’s a concern.”

But Knight added: “We should thank JAL for all they have done for many, many years.”

Knight said HANMI would try to obtain first-hand information about JAL’s plans, hoping that the air carrier would not completely pull out its flights to Saipan.

JAL’s plan came about even as HANMI reported of improvements in the tourism industry, with several hotels embarking on major investments to renovate or put up new facilities as tourist attractions.

Although Japanese arrivals into the CNMI have been declining in the past months, industry players remain optimistic that the Commonwealth’s premier tourist market would recover.

Office of Insular Affairs economist Wali Osman told businessmen in a recent gathering that growth in tourism—particularly with the Japanese and Chinese market—would become almost certain as economies of those Asian countries improve.

Commonwealth Ports Authority executive director Carlos Salas disclosed Sunday that JAL is planning to pull out or reduce its flights to Saipan and Guam due to rising operational costs, mainly due to increasing fuel prices.

Salas stressed the importance of 14 weekly flights from Tokyo and Osaka to the Commonwealth’s tourism industry. JAL provides daily flight from Narita and Kansai, besides providing charter services. (with John Ravelo)