MVA spared from budget cut

The Marianas Visitors Authority will be spared from a budget cut, according to Gov. Benigno R. Fitial.

“I know MVA needs more money so I’ve already asked [Finance] Secretary [Eloy] Inos to waive the budget cut,” Fitial announced before the MVA board members and staff during Friday’s proclamation signing declaring May as tourism month.

At the same time, Fitial assured MVA of additional funds.

Fitial said that MVA would be getting more funds from the administration, including a $400,000 incentive for Northwest Airlines.

He said that since the government could not give the money to NWA directly due to procurement concerns, it would be released to the MVA Tokyo office instead.

Following a meeting with Fitial last February, NWA introduced a second Tokyo flight to Saipan effective April 25.

Further, Fitial said that he has instructed Public Lands Secretary John S. Del Rosario to identify funds for MVA’s use.

“It’s additional budget for MVA,” said Fitial.

MVA receives a $7-million budget under the continuing resolution, Public 13-24. Less the constitutionally mandated deductions for deficit payment and Office of the Public Auditor, MVA only gets to keep a net budget of $5.9 million.

MVA has been getting this budget allocation since fiscal year 2003.

As of last month, MVA said that it has a working budget of $5.6 million for FY 2006.

When the Fitial administration slashed the government budget from $213 million to $198 million early this year, the MVA was asked to cut its budget by $1.1 million. The agency had initially obliged but warned that its promotional or advertising program would be adversely affected.

In a meeting last month, the MVA board had decided to restore most cuts, informing the Executive Branch that it could only reduce its working budget by $300,000.

MVA officials said that, instead of being deducted, the agency should be getting more money to do its job to promote the CNMI.

They said that funds are most needed now in view of the Fitial administration’s goal to increase the annual tourist arrivals from the current 500,000 level to 1 million by 2008.

Right now, the MVA board said the agency is outspent several times over in advertising by its counterparts in Guam and Hawaii.

For fiscal year 2007, the MVA board is asking for $11.3 million budget with the additional $4 million reserved for advertising and promotion of the CNMI overseas.