‘Japan remains the toughest challenge’

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Posted on Dec 13 2006
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Japan remains the most challenging market for the Marianas Visitors Authority, following a major setback last year brought about by the departure of Japan Airlines.

“Our toughest challenge remains with Japan. But failure is not an option. We will overcome this setback,” said MVA board chair Jerry Tan in a recently held MVA general membership meeting on Saipan.

He said the CNMI continues its discussion with airlines to service the Japan-Saipan route.

“We want to grow the Japan market. There are ongoing discussions. We want the Osaka flights back soon,” he said.

Saipan lost its Osaka flights from Northwest Airlines last month when the airline opted to use that route to serve Guam.

Northwest, the lone airline that services the Japan market for the CNMI, currently flies the Narita-Saipan and Nagoya-Saipan routes.

These reduced flights prompted the MVA to lower its projected arrivals from Japan in fiscal year 2007.

Instead of 312,000 target arrivals, the MVA reduced this to 250,000 in FY 2007.

In fiscal year 2006, covering October 2005 to September 2006, the CNMI received 280,292 visitors from Japan, which is a 25-percent decline compared to the previous fiscal year.

In October 2006, Japan arrivals registered a 6-percent decline. From 22,591 in October 2005, the arrivals went down to 21,330 last month.

The huge decline was attributed to the loss of air seats due to the JAL pullout. Japan Airlines used to bring in an average of 150,000 tourists a year.

In October this year, arrivals from Japan declined by 6 percent.

Japan arrivals represent about 60 percent of the total tourist arrivals in the CNMI.

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