A snorkeler enjoys the waters of the CNMI. Photo: MVA
The chairman of the Hotel Association of the Northern Mariana Islands (HANMI)painted a dim picture about the CNMI's tourism industry after another subpar average hotel occupancy rate in October 2024.
"As a destination, the Marianas is losing traction at this point, not recovering," HANMI chair Dennis Seo said
His comment comes after HANMI reported 31.6 percent average occupancy rate among 11 member hotels for October 2024, a 37 percent decrease compared to a year ago in October 2024.
A total of 20,557 of 65,020 available room nights sold during October 2024, compared to 31,603 of 63,248 available rooms sold in October 2023. The average room rate was $119.87 compared to $135.13 last October.
"Visitor arrivals are still as low as they were in October 2023, every two out of three hotel rooms in HANMI is empty, and our average room rate also took a huge hit in October, dropping 13 percent," Seo said.
"The US dollar has shown extraordinary strength, intensifying competition with the premier beach resorts in Vietnam, Thailand, and the Philippines, as well as among hotels in Saipan, resulting in a continuous decrease in hotel sales prices.
"This indicates that the profitability of hotels is declining or that they are operating at a loss. The tourism economy has not bounced back for us."
HANMI's tipid numbers come as Jeju Air's night flights were reduced from twice daily to once from 26 October to 7 December 2024, due to annual flight maintenance.
October through mid-December is usually a low travel period, but Seo-who just returned from negotiations with Jeju Air in Korea-says even the Christmas and New Year holiday period is lackluster, and hotels are barely hanging on.
"The situation is dire," he said.
"Last year, the holiday vacation was five weeks for students; this year it's only three. Tourism partners and the Marianas Visitors Authority have negotiated to have 20 charter flights between Saipan and Busan-Korea's second largest city-between 20 December and February 2025, but nothing can replace a strong second or third source market."