‘Hotel industry better in 2008 than in 2007’

The hotel industry performed a tad better in 2008 compared to a devastating year in 2007, according to Lynn Knight, president and chairwoman of the board of the Hotel Association of Northern Mariana Islands.

Knight, who was recently re-elected for another two-year term, said Japanese and Korean tourism activities picked up a bit.

She said that the Russian market doubled because the tourists from Russia were worried that they might not come by next year so they were taking their chances.

HANMI is also anticipating an influx of visitors from the huge China market.

Knight said this market looks pretty well and HANMI is hoping to hold on all the current flights to the islands “but it always depends on the flight schedules whether we can keep the market the same size.”

She said they are also worried about not only in the tourism market but also in the possible reduction in some service.

The service from Northwest Airlines, which increased tourism from Japan and Korea, Knight said, was a major factor in 2008.

Earlier, Mustafa Issa, general manager of Palms Resort Saipan made an initial analysis on the effects of the global economic slowdown saying that the tourists will definitely opt to a nearer place like Saipan due to its proximity to Asia because of lesser costs and time.

Guam, Hawaii and Bali, Indonesia, and other tropical destinations in Asia are Saipan’s main tourism competitors.

Another issue that the hotel industry is currently facing is the anticipation of the upcoming federalization of CNMI immigration and the continued increase on minimum wage level.

Knight said hotel managements are worried about their employees, whether they could keep the same level of quality service.

“Would we be able to keep it and enjoy and how are we going to afford these uncertainties. This is something that we’re worried about,” she said.

Knight said the cooperation of the government would boost the business sector.

“I would say that right now there is a very good dialogue. We have an open communication with the administration and with the Legislature,” Knight said.

She said that the one thing that concerns the hotel industry is the issue of raising taxes and the plan to remove the rebates.

She said that, in the U.S. the private sector is asking the government for bailout in the CNMI.

She said it appears that the government is asking the private sector for a bailout.

Knight added that HANMI is opposed to any increase in taxes.

“We hope that the government becomes more efficient and do some downsizing wherever is necessary,” Knight said.

She said the economy has shrunk and the government needs to match the size of the economy and “we realized it’s very hard to do.”

She said the economic downturn happened very fast but the government needs to look anywhere for efficiency rather than taxing the industry that is putting food on the table.

“We think that they really should look into their cost cutting,” she said.

So in order to prepare for the upcoming federalization, HANMI is working closely with the government and the Legislature.

It is also looking forward with working closely with the new Representative-elect Gregorio “Kilili” Sablan on some of these issues.

“There’s a lot of work to be done with the executive branch in the U.S. because there are five federal agencies that are in the regulations and we will be implementing them. So we continue whatever we can do to help and iron out all the little details,” Knight said.

This would mean, Knight said, talking to these federal agencies a lot and helping them to understand what the difficulties are then trying to find ways to smooth things out.