Hong Kong Airlines restarts NMI Chinese tourism, wider effort needed
BY MARK RABAGO Saipan Correspondent
FRANCISCO C. ADA SAIPAN INTERNATIONAL AIRPORT — The return of Hong Kong Airlines flights to Saipan also heralds the jump-starting of the all-important Chinese market in the Northern Mariana Islands tourism industry, which has experienced anemic visitor arrivals since the COVID-19 pandemic in 2020.
Christopher Concepcion, managing director of the Marianas Visitors Authority; said the return of the low-cost carrier is a step in the right direction in terms of recovery.
“In fiscal year 2019 prior to the pandemic, visitors from China comprised 45% of all visitors to the Marianas; arrivals from South Korea comprised 46%. While Korea has recovered almost entirely, the absence of China as a source market has been a huge gap in our economic recovery efforts. Even the Hotel Association of the Northern Mariana Islands has reported that last month their average occupancy among the Top 12 hotels in the Marianas was only 34%. It’s a starting point, and there is still a lot of ground to gain ahead,” he said.
(From left) Leo Tudela, executive director, Commonwealth Ports Authority; Hong Kong Airlines chair Jianfeng Jeff Sun, chairman of Hong Kong Airlines; Lt. Gov. David M. Atapang; Visitors Authority board of directors chair Gloria C. Cavanagh, chairperson of the board of the Marianas Visitors Authority; and Christopher Concepcion, managing director of MVA. Photo by Mark Rabago Saipan welcomed the full capacity of 292 passengers on the inaugural flight early morning on April 29 with a water salute.
Hong Kong Airlines Chairman Jianfeng Jeff Sun was at the controls of the A330 aircraft, and in a media briefing after the flight, the licensed pilot said discussions are already being made to add additional flights from Hong Kong to Saipan as early as this summer. Currently, Hong Kong Airlines is committed to providing two flights per week from Hong Kong to Saipan.
Lt. Gov. David M. Apatang said Hong Kong Airlines’ return to the NMI is a welcome development to the CNMI’s tourism industry.
“On behalf of the administration and the people of the CNMI, I want to extend our warmest welcome to all those aboard the Hong Kong Airlines inaugural flight to our beautiful island of Saipan. This inaugural flight is a much-welcomed visit to our islands,” he said.
Meanwhile, Gov. Arnold I. Palacios doubled down on his pivot away from the NMI’s overreliance on the Chinese tourism market, despite the positive development of Hong Kong Airlines finally opening up the islands’ No. 1 tourism market.
In his letter to President Joseph R. Biden Jr. requesting consultations between the NMI and the U.S. government, pursuant to Section 902 of the Covenant, Palacios reiterated that early on in his administration he announced that the NMI would pivot away from overreliance on tourism and investment from the People’s Republic of China to more sustainable markets in allied democratic jurisdictions like Japan, the Republic of Korea, and the Republic of China (Taiwan).
“We need the support of our federal partners to accomplish this pivot,” Palacios said.
He said the NMI’s efforts to revitalize the economy and especially the tourism industry in the post-COVID 19 era are hampered by inadequate infrastructure at airports and seaports, and limited air and freight service to and from the islands.
In the letter, the NMI seeks the assistance of the U.S. government in upgrading transportation infrastructure, securing new and expanded air service options, and relaxing cabotage restrictions to facilitate air service competition.
China arrivals in March 2024 reached 1,222 compared to 58 arrivals in March 2023. Prior to the COVID-19 pandemic, China was the second largest source market of visitors to the Marianas with multiple direct flights a week from five cities. Prior to the return of Hong Kong Airlines, most visitors from China were FITs transiting via Seoul and Tokyo to the Marianas.
A water salute welcomed the Hong Kong Airlines flight on April 29. Photo by Mark Rabago In late February, MVA joined other delegates from the Marianas at the Quality of Life EXPO 2024 in Guam, a travel show organized by Joint Region Marianas to showcase regional resources and services to military service members and their families.
There are about 7,400 active-duty military personnel in Guam, about 4,200 civilian employees, and an estimated 9,000 family members, plus U.S. Coast Guard personnel stationed in Guam, according to figures supplied by Joint Region Marianas to the Journal in February.
“The military market has always been on the MVA’s radar, and we have consistently participated in preparations for the many, many R&R port calls that military ships have made over the decades,” Concepcion said. “In fact, Saipan has built a very good reputation for being a beautiful, nature-based port call where our military personnel feel welcomed. With the military buildup in Guam and region, we are working closely with our military contacts to spread the word that Saipan, Tinian, and Rota are ideal places to relax with family, have adventures with friends, and rejuvenate.”
MVA also placed ads for January’s Rota Marathon 2024 and last March’s Skechers Saipan Marathon 2024 in the Guam publication of Stars and Stripes, the U.S. military newspaper. MVA also joined Joint Region Marianas and the Saipan Chamber of Commerce in organizing the Morale, Welfare, and Recreation Quality of Life Program held in Saipan in December 2023, highlighting travel partnership opportunities. Despite all these efforts, military tourism cannot entirely replace the China tourism market, Concepcion said.
“While we do see an increase in military activities and construction in our area, there are no plans for a permanent military base with active-duty personnel and families who spend and provide a second source of economic activity for the CNMI. So, for the foreseeable future, we will have to rely on tourism and that can be dangerous. COVID-19 taught us that the tourism industry can come to a halt instantly due to forces beyond our control. We need our economic development partners in the government and private sector to use their skills to come up with alternative industries.”
Overall, Concepcion said MVA’s long term objective is to ensure a stable and profitable tourism industry that allows private business to flourish, jobs to be created, and taxes to be collected by our government so essential services are maintained and enhanced. He also emphasized the need for the CNMI Economic Vitality & Security Travel Authorization Program to be implemented.
“We need to ensure sustainable growth is achieved with minimal impact on our environment. We need to start enforcing laws that penalize blighted buildings, since that is a major detriment to our image as a tourist destination. For the Hong Kong and China market in particular we need to ensure the EVS-TAP program is implemented with maximum efficiency, that it is left alone so that the CNMI is able to survive and thrive. This program is unique in the entire U.S., and we need to protect it for the Hong Kong and China markets to survive long term,” he said. mbj
