Guerrero: PAL return opens new tourism markets for CNMI

The return of Philippine Airlines to Saipan will do more than transport Filipino workers, with Marianas Visitors Authority board director Joe C. Guerrero saying the airline could help the CNMI reach new tourism markets around the world.

Guerrero made the remarks as the MVA board approved a $400,000 sole-source promotional contract with Philippine Airlines during its meeting last Oct. 13 at the MVA office in Garapan.

Philippine Airlines is scheduled to resume its Saipan service on Oct. 25.

Guerrero said the airline's return would also benefit CNMI residents who travel to the Philippines for medical treatment and other purposes.

"There is a community aspect to this as well," Guerrero said.

He said Philippine Airlines' extensive international network would help the MVA expand its reach beyond traditional visitor markets.

"But more importantly for MVA, this is seen as a key pivot toward other markets that we've never been able to reach," Guerrero said.

He noted that Philippine Airlines has connections to the U.S. mainland, Asia, and Europe, which could help attract more international visitors to the CNMI.

Guerrero also cited the airline's competitive fares and availability of economy and business class service, saying these could support the MVA's Far From Ordinary campaign and efforts to attract higher-spending tourists.

"Again, a connection to many other markets and not just the Philippines," he said.

According to the MVA board agenda, the $400,000 promotional budget was originally approved in April 2026 to support the development of the Philippine market and diversify the CNMI's tourism sources.

Of that amount, $145,833.33 is allocated for winter air service from Oct. 25, 2026, to March 27, 2027, with another $20,000 for winter marketing.

The summer allocation includes $204,166.67 for air service from March 28 to Oct. 30, 2027, and $30,000 for marketing.

MVA acting managing director Judith C. Torres said the proposed sole-source contract had already been reviewed by the Office of the Attorney General and found legally sufficient.

She said management wanted the agreement in place before Philippine Airlines resumes service on Oct. 25.

The board approved the proposed agreement, allowing management to proceed with the contract routing process.

Meanwhile, the MVA board also approved moving forward with a separate sole-source promotional agreement worth up to $210,000 with Century Tours to support Hong Kong Airlines charter flights and attract more visitors from Hong Kong and mainland China.

Torres said Century Tours is now the only company securing most of the seats on Hong Kong Airlines' charter flights to Saipan.

She said Century Tours and LT Travel previously participated in the airline's charter arrangements, but Century Tours is now the sole participating company under the current arrangement.

The MVA board agenda showed that Hong Kong Airlines carried 8,322 of the 11,599 visitors from the People's Republic of China recorded during fiscal year 2026 through August, accounting for 71.7% of arrivals from that market.

The figures underscore the importance of the Hong Kong-Saipan route to the CNMI's mainland Chinese visitor market.

The proposed $210,000 contract ceiling is $57,500, or about 21.5%, lower than the previous Century Tours contract ceiling of $267,500, which expired Sept. 30, 2026.

The new agreement would cover selected promotional activities, including travel trade development, familiarization tours, digital advertising, social media content, and destination promotions targeting Hong Kong and mainland China.

The proposed funding would also support selected travel, sports, outdoor, and family-oriented promotions aimed at encouraging more visitors to travel to the CNMI.

According to the agenda, the $210,000 ceiling would represent up to 70% of the MVA's proposed $300,000 China market promotional budget for fiscal year 2027.

Torres said management sought board approval to move forward with the proposed contract rather than delay consideration until another meeting.

Unlike the Philippine Airlines agreement, the Century Tours contract still requires final confirmation of available funding, the scope of promotional activities, and completion of procurement and legal reviews.

The board approved proceeding with the contract process, subject to those requirements.