‘Tourism numbers will be worse than after 9/11 if…’

If the CNMI can’t revive the lost air service from Japan in 2006, it should focus on tapping other tourist markets or visitor arrival turnout may even be more devastating to businesses compared with 2001 right after the 9/11 attacks.

Hotel Association of the Northern Mariana Islands chair Lynn Knight said the CNMI should take advantage of its Approved Destination Status in China, while enhancing efforts to promote the Northern Marianas in Korea, the islands’ second biggest tourist market next to Japan.

Other tourist markets that could be improved are Russia, the tourists of which usually stay longer at a destination, as well as Taiwan and Hong Kong, according to Knight.

Citing monthly hotel occupancy rates in the last quarter of 2005, Knight said the figures are “worrisome,” considering the numerous charter flights that came to Saipan during the period. Without the charters, results could get worse, she said.

The pullout of Japan Airlines’ regular flights to Saipan in October, as well as the loss of air service from Taiwan and Hong Kong during the quarter, impacted the hotel industry, with monthly occupancy rates hovering around 60 percent.

In October 2005, the average occupancy rate settled at only 60.66 percent, lower than October 2004’s 63.26 percent. The trend continued in November, with the average rate settling at only 60.90 percent compared with November 2004’s 67.23 percent.

Despite several charter flights in December 2005, hotel occupancy rate only reached 63.20 percent, way below the December 2004 average of 71.59 percent.

The HANMI recorded the highest monthly occupancy rates for the last quarter of the year in October 1996, which netted 83.26 percent; November 1996, 90.14 percent; and December 1995, 83.51 percent.

HANMI and other tourism industry players attended a presentation of the Pacific Asia Travel Association on its findings in connection with a study aimed at identifying new air route opportunities for the CNMI and Guam.

PATA’s consultant, Airport Strategy & Marketing Limited, made the presentation at the Saipan World Resort Thursday, in connection with a study requested by the Marianas Visitors Authority, Commonwealth Ports Authority, as well as the Guam Visitors Bureau and the Guam International Airport Authority.