Embedded Files
04/15/25 - The Marianas Visitors Authority and the Hotel Association of the Northern Mariana Islands both had to deal with disappointing visitor arrival and hotel occupancy numbers last month with latter saying that the islands’ hotel industry is actually in survival mode.
MVA reported that visitor arrivals to CNMI totaled only 13,981 in March 2025, a 27% decrease compared to 19,213 visitors received in March 2024.
The Commonwealth’s tourism body said South Korea remained the largest visitor market, contributing 8,936 arrivals in March 2025—a 38% drop from the 14,403 visitors in March 2024.
MVA said the decline is largely attributed to the cessation of flights by Asiana Airlines to Saipan in July 2024, as well as the reduction in flights by Jeju Air following the December 2024 crash in Korea, including a reduction in its nighttime flight from daily to only four times a week from March 7 to 29, 2025.
On a positive note, MVA said Jeju Air has announced they will add eight flights from April 30 to May 7 to accommodate peak holiday travel demand.
MVA said a continuing aircraft shortage across multiple carriers, fierce competition with Southeast Asian destinations, and other industry factors continue to challenge flight service to CNMI from its Korea market.
In March the MVA joined Gov. Arnold I. Palacios and representatives of HANMI, the Legislature, and the Commonwealth Ports Authority in meeting with airline partners in Korea to negotiate air connectivity.
Visitor arrivals from Japan went down to 1,121 arrivals in March 2025 compared to 1,470 in March 2024. The 24% difference was largely due to the arrival of nearly 700 ship passengers in March 2024. In March 2025, the average aircraft load factor—the percentage of occupied air seats—from Japan was 24% higher than last March.
Arrivals from China reached 1,471 in March 2025, reflecting a 20% increase from the 1,222 visitors recorded in March 2024. Arrivals from China comprise 9% market share, a slight increase compared to 7% market share from Japan. Before the COVID-19 pandemic, China was the Northern Marianas' second-largest source market, with multiple direct flights. MVA previously maintained a representative office in China to support these efforts.
Additional visitor arrivals in March 2025 included 1,076 visitors from Guam, 882 visitors from the U.S., and 495 from other markets.
HANMI, for its part, reported 28.57% average occupancy rate among 11 member hotels for March 2025, 18% lower than 34.98% in March 2024.
This led to the association saying that it’s actual fighting for survival due to the low numbers.
"We are actively exploring all available opportunities in the Korean market and, as an industry, strongly advocate for the restoration and expansion of flight services from Japan and China. At this stage, we are operating in survival mode and urgently need broader regional connectivity to support recovery," said HANMI chair Dennis Seo.
A deeper look on the March numbers indicates that a total of 18,587 of 65,062 available room nights sold last month compared to 26,205 of 74,906 available rooms sold in March 2024. The average room rate was $112.81 in March 2025 compared to $118.89 in March 2024.
The March 2025 figures exclude the former 315-room Hyatt Regency Saipan—now Marianas Beach Resort—reported in 2024.
"Before the pandemic, Saipan's major hotels/resorts maintained an average occupancy rate of 80% and higher, which is generally considered a healthy benchmark in the hospitality industry," said Seo. "Unfortunately, most local properties have not returned to profitable occupancy levels since 2019. We are now seeing occupancy rates dropping to similar to those of two years ago, and sustainable profitability remains a challenge."
Jeju Air, one of three airlines providing direct flights from the CNMI top source market of South Korea, suspended its daily night time flight to Saipan on March 29. Coupled with the loss of Asiana Airlines last year, air service from the Northern Marianas' top source market has dwindled to only two daily flights this month. While the CNMI had direct flights from five cities in mainland China and Hong Kong prior to the pandemic, at this time there are only twice weekly flights from Hong Kong. Additionally, prior to the pandemic there were daily flights from Japan, versus only three flights a week today.
Hotels included in HANMI's monthly statistical report are Aqua Resort Club, Aquarius Beach Tower, Century Hotel, Coral Ocean Resort, GrandVrio Resort Saipan, Crowne Plaza Resort Saipan, Kensington Hotel Saipan, LaoLao Bay Golf & Resort, Pacific Islands Club Saipan, Saipan World Resort, and Surfrider Resort Hotel.
-----
Story by Mark Rabago
Report abuse