‘Future of NMI tourism uncertain’

Uncertainty is the word that will define the CNMI’s tourism industry in the CNMI for the next year, the Marianas Visitor Authority’s representative for Japan and Korea said yesterday at the MVA’s bi-annual general membership meeting.

Weakened economies in both Japan and Korea affected tourism numbers the past year, as leisure travel declined and tourists decided to stay within Asia or halt traveling altogether, said Michael Merner, chairman of AVIAREPS Marketing Garden of the MVA’s Japan and Korea representative offices.

“The economy in Japan is in pretty bad shape,” he said, noting that the country is in a full-blown recession, which is affecting everything, including travel to the CNMI.

The good news, though, he said, is that the yen has depreciated significantly, making travel for Japanese to the United States, Guam and the CNMI cheaper.

Although Japanese outbound travel is down, the CNMI saw a 3-percent increase in year-to-date number of travelers, and preliminary figures show a 28-percent increase for the month of November. Asiana’s new Osaka-Saipan flights will increase the number of seats to and from the CNMI, Merner pointed out.

But there are several barriers the CNMI must overcome, Merner said.

As airlines cut back, many are eliminating beach destinations, so the CNMI must focus on keeping flights full. There’s competition with Guam and a lack of new products and facilities in the CNMI like wedding chapels.

There are several key strategies to help the Japanese tourism market to the CNMI, including an active dialogue with airlines; joint marketing programs; implementing campaigns to target high-yield segments, generating media coverage; and showcasing new and fresh attractions in the CNMI.

The recent and rapid depreciation of the Korean won is affecting that market’s visitor numbers, Merner said.

In fiscal year 2008, the CNMI gained a “huge market” share in a declining market, but in November 2008 the CNMI saw a 30-percent decrease compared to 2007. But the country’s economics encourages Koreans to travel to short-haul destinations like the CNMI, rather than long-haul destinations, Merner said.

The MVA is focusing on several promotions and awareness campaigns to help lure Japanese and Korean travelers to the CNMI.