The Mrianas Visitors Authority may have no choice but cut majority of its programs if Gov. Eloy S. Inos signs into law the fiscal year 2016 budget bill that was passed by the Senate and House of Representatives yesterday.<\/p>\n
The budget bill essentially takes away MVA\u2019s $2.5 million budget for next fiscal year by reducing it to $1.<\/p>\n
Broken down, the $2.5 million will be divvied up to the Department of Public Work\u2019s streetlights project ($1,802,403), Division of Customs\u2019 x-ray machine at the airport ($200,000), x-ray machine for container and loose cargo at the seaport ($225,000), and handheld x-ray scanners at the seaport ($75,000), and the Saipan Mayor\u2019s Office\u2019s cleanup and beautification projects ($200,000).<\/p>\n
The MVA board met yesterday at the Hyatt Regency Saipan, but they decided to table their discussion on the fiscal year 2016 expenditure to a later date because Inos has yet to make a decision on the budget.<\/p>\n
The tourism body\u2019s managing director Perry Tenorio told reporters that they did meet with Inos yesterday, but refused to discuss the results of the meetings because it was a closed-door one.<\/p>\n
MVA programs that could be affected by the reduction of MVA\u2019s fiscal year 2016 earmarks include Taste of the Marianas, Christmas in the Marianas, sporting events held by MVA both on Tinian and Saipan, and promotional activities that help the CNMI\u2019s tourism arrivals increase increase.<\/p>\n
\u201cThe local programs that we hold, the sporting events like XTERRA [Saipan Championship], Tagaman [Triathlon], etc.], and local events will be impacted,\u201d Tenorio said.<\/p>\n
While the MVA board has not decided to cut these programs yet, Tenorio said it is a decision that they may have to look at in the future.<\/p>\n
Majority of MVA events promote tourism and culture in the CNMI, with the programs cut, majority of the tourist may not be pleased.<\/p>\n
MVA\u2019s recent exit survey showed that tourists need more shopping and night activities and the tourism body may not have the ability to supplement current activities because of the reduction of its budget.<\/p>\n
MVA\u2019s earmarks come from projected hotel tax earnings. In the case of fiscal year 2016 and minus the $2.5 million taken away by the Legislature, the tourism body expects to collect $8.5 million in hotel tax in the next fiscal year.<\/p>\n
MVA wants the lion\u2019s share of what\u2019s left to be used to promote the Commonwealth in its key tourism markets.<\/p>\n
\u201cWe\u2019re recommending a funding level for offshore of $7 million out of the $8.5 million,\u201d said Tenorio.<\/p>\n
\u201cWhen we look at the total programs including the promotions offshore, marketing, and ad hoc committees locally and special events\u2026it might be impacted greatly,\u201d he added.<\/p>\n
Public Law 18-1 mandates that MVA would receive 20 percent of taxes under the container tax and 80 percent of taxes from the hotel occupancy tax.<\/p>\n
The intent of Public Law 18-1 according to MVA was that \u201cthe implied promise made to MVA partners in China, Korea, Japan, Russia, Taiwan, and here in the CNMI, that the proceeds of Public Law 18-1 will be used to ensure the continued growth of CNMI\u2019s travel industry.\u201d<\/p>\n
HANMI opposes MVA budget cut<\/strong> HANMI president Gloria Cavanagh earlier told Saipan Tribune that it was always HANMI\u2019s concern that lawmakers would eventually forget the reason for enacting the hotel tax in the first place.<\/p>\n \u201cThree years ago, tourism, our only real economy, was is dire straits. Our ability to promote our CNMI was limited to an underfunded MVA,\u201d Cavanagh said. (Jayson Camacho)<\/p>\n","protected":false},"excerpt":{"rendered":" The Mrianas Visitors Authority may have no choice but cut majority of its programs if…<\/p>\n","protected":false},"author":45,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[20,26,212,1275],"class_list":["post-211050","post","type-post","status-publish","format-standard","hentry","category-local-news","tag-budget","tag-cnmi","tag-mva","tag-public-law"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/211050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=211050"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/211050\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=211050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=211050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=211050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThe Hotel Association of the Northern Marianas Islands, meanwhile, continues to oppose the Legislature\u2019s adoption of the fiscal year 2016 budget sans the original appropriation to MVA.<\/p>\n