The Hotel Association of the Northern Mariana Islands reported 41% average occupancy rate among 11 member hotels for June 2024, a 12% decrease compared to 47% average occupancy among 11 hotels in June 2023.
A total of 25,862 of 62,972 available room nights sold during June 2024 compared to 29,275 of 62,619 available rooms sold in June 2023. The average room rate was $121.79 compared to $131.03 last June.
“May and June are typically high season for the hotels, but this year we have a decrease in both occupancy rates and room rates compared to last year, resulting in continued low tax revenue generation and employment levels,” said HANMI chair Dennis Seo. “Again, as a destination we need to take action what is within our control to reverse this decline…supporting the reinstatement of Annex VI, empowering the Marianas Visitors Authority to actively promote in the China market, and supporting flights through Commonwealth Ports Authority initiatives.”
Prior to the pandemic, Annex VI under the U.S. Department of Transportation’s “U.S.-China Air Transport Agreement,” provided an exemption for the Marianas from the cap on the number of U.S.-China flights.
Other challenges facing the Marianas tourism economy are the strength of the U.S. dollar against the Korean won and Japanese yen, increase operational costs, intensified competition from other beach resort destinations, and the lack of a strong third source market.
Overall, tax contributions by HANMI member hotels are down 59% this calendar year-to-date compared to the same period in 2019 before the pandemic. Business gross receipt tax from room sales paid by HANMI member hotels are estimated at approximately $1.1 million so far this calendar year compared to $2.6 million paid in 2019. In addition, hotel occupancy tax paid has decreased from $7.7 million per-pandemic year-to-date compared to $3.2 million this year. In addition, employment by
HANMI member hotels has decreased from approximately 2,500 employees several years ago to 1,340 employees today.
The United World Tourism Organization predicts near complete full recovery of international tourism worldwide this year.
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.
HANMI was established in 1985 as a professional forum for the hospitality industry of the Marianas. HANMI also makes regular charitable donations to support non-profit organizations and tourism-related government projects. HANMI membership is open to all qualified hotels and other loading properties for tourists and affiliated business. Membership applications are available at www.saipanhotels.org. (PR)
Source: HANMI occupancy at 41% in June 2024
