The Marianas Visitors Authority board approved a $12-million budget proposal for fiscal year 2027, opting to seek the highest funding scenario from the Legislature as officials warned that anything less could hamper efforts to revive the CNMI’s struggling tourism sector.
The decision came during the tourism agency board meeting last April 8 at its Garapan office, where directors weighed three funding scenarios—$1.6 million, $4.2 million, and $12 million—before ultimately agreeing to pursue the full amount despite acknowledging the challenges in securing it.
MVA managing director Jamika Taijeron laid out the options, explaining the operational consequences tied to each funding level and the uncertainty surrounding Hotel Occupancy Tax collections.
She described the lowest option as unsustainable.
“At that level, we would be forced to reduce our workforce [and] we would not be able to maintain any representation in any of the source markets, and all events, sponsorships, and initiatives would be suspended.”
The $4.2-million scenario, she said, would keep the agency functioning but would rely heavily on supplemental appropriations that have yet to be identified.
“This scenario assumes supplemental appropriations of $2.6 million, but we have not identified where those appropriations are coming from yet.”
Taijeron emphasized that the $12-million proposal reflects what is actually needed to rebuild the industry.
“We know that it’s a long shot to ask for $12 million, but that’s realistically, if we want to see any difference and improvement, we need that $12 million.”
Board member Joe C. Guerrero raised concerns about how the proposal would be received by lawmakers, referencing past budget decisions.
“How do we square this with the Legislature, where they kind of arbitrarily chose a number for us so how do we prevent that from happening again?” Guerrero asked.
He also questioned whether the MVA should strategically request a higher figure to avoid being underfunded.
Board member Ivan Quichocho warned that current revenue trends already paint a grim picture, urging urgency in the board’s approach.
“We need to fasten our seatbelts because the numbers after February are horrible,” he said.
Quichocho argued that even the mid-range option would fall short of what is needed to compete.
“At $1.6 [million], $1.7 [million], that’s a mouse’s voice… even at $4.6 [million] right now, yeah, it’s better, but it’s still… on the light side,” he said.
“The last one is the more appropriate one to deal with the kind of crisis that we’re dealing with. However, I don’t know where that money’s going to come from.”
He pointed to external pressures, including airline uncertainties and global conditions, adding that the CNMI must “get very creative” in securing funding.
Board member Vicky Benavente supported pushing for the higher amount while acknowledging the likelihood of receiving less.
“Even if we get federal funding, we need to ask our local government for funding,” Benavente said. “But let’s ask for the higher amount and anticipate a lower amount.”
Guerrero echoed concerns about the signal a lower budget might send.
“It’s not a good signal to the market that we’re budgeting to spend less than what we approved last year,” he said.
Taijeron stressed that a strong ask would require unified advocacy.
“We’ll really need all the support of everyone in this room to advocate for that, local government and federal.”
Board chair Warren Villagomez then called for a motion, which was unanimously approved.
Earlier in the meeting, MVA finance staff reported that MVA revenues are tracking below projections, with stricter enforcement of municipal allocations cutting into collections. Board members also noted declining hotel room rates and warned that tourism indicators remain weak.
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