MVA taps $100K building reserve fund for Japan tourism expo amid Sinlaku recovery

The Marianas Visitors Authority board approved last May 27 the reprogramming of $100,000 from its building reserve fund to finance participation in the Japan Travel and Tourism Association Expo, or JATA, as officials argued the CNMI could not afford to disappear from the Japanese market while recovering from Super Typhoon Sinlaku.

The discussion dominated much of the May regular board of directors meeting, with directors and management warning that failing to attend the September tourism expo could damage the CNMI’s standing with airlines, travel agents, and Japanese industry partners.

MVA chair Warren Villagomez said the authority had been working hard to regain traction in Japan and described visibility in the market as critical during the CNMI’s recovery period. He said participation would also showcase the work done by the MVA team and deputy managing director Judy Torres.

“Representation is greatly needed for MVA to be present in this setting,” Villagomez said.

Managing director Jamika Taijeron said Japan has been one of the few bright spots for the CNMI tourism industry.

“Over the past year, we’ve seen year-over-year growth with the Japan market,” Taijeron said. “This would be the first major activity that we would roll out on new branding.”

Taijeron, who will leave MVA this May 31, said the expo would allow the CNMI to reassure Japanese travelers that the islands are recovering from Sinlaku.

“We want to come out there and say, like, no, we’re here, we’re ready, our island is recovered,” she said.

Board member Ivan Quichocho supported participation but urged MVA to go beyond simply joining the trade show.

“We need to also create an event for seeing them only, not just be a part of the noise, create our own noise,” Quichocho said. “When we’re out of sight, out of mind, we need to make a lot of noise.”

Quichocho said the CNMI’s absence from Japan since the storm made direct engagement even more important.

“We cannot lose that momentum,” he later added. “Absent, not participating signals that we’ve taken significant amount of damage.”

Board member Joe C. Guerrero questioned whether spending another $100,000 would produce sufficient returns given the continuing lack of airline seats from Japan.

“We’re spending 100 grand, but if we only have so many seats, that cost per seat for the Japanese tourists is pricey,” Guerrero said, while also asking management for updates on efforts to secure additional flights from Narita and possible partnerships with Philippine Airlines.

Board member Sachiko N. Gerrard strongly defended participation in JATA, describing it as one of Asia’s biggest tourism events and a critical venue for negotiations with airlines, travel agencies, and public relations firms.

“The people coming to you, they have interest,” Gerrard said. “We’re not going to waste their time.”

She warned that pulling out after the typhoon would send the wrong message to Japanese partners.

“If we are not participating, what we’re going to do is go back to zero,” Gerrard said. “Saipan is not serious. That’s the image that we will give.”

Board member Marvin Deleon Guerrero urged caution before committing additional funds, saying the authority needed to weigh the return on investment.

“Are we going to have a return on this investment?” Deleon Guerrero asked. “We don’t want to keep infusing funds, money, to offhand marketing efforts. And what are we getting in return?”

MVA marketing manager Andy Qin responded that stopping participation after the typhoon would ultimately hurt the CNMI more.

“If we stop, then next year when we try to go back, it will be double or triple cost to let them remember us again,” Qin said.

Taijeron echoed that point, saying airlines closely watch whether destinations continue marketing themselves after disasters.

“If we just kind of say, you know, we’re not participating in all these things because it costs a lot of money, the airlines would look at it as an indicator of, you know, this destination is not a hot destination,” Taijeron said.

The board eventually voted unanimously to approve the reprogramming request.

During public comment, Rep. Marissa Flores questioned whether extensive travel spending remained appropriate while the islands were still recovering from Sinlaku, though management and board members maintained that continued international visibility was necessary to preserve future tourism arrivals.

The board also discussed several other financial and operational issues during the meeting.

MVA approved revised terms for a sole-source agreement supporting continued Korea-Saipan summer air service after fuel prices and Sinlaku-related disruptions forced Jeju Air to reduce planned flights from 188 round trips to 85 round trips.

The board additionally approved changing the funding source for the Philippine market development initiative from Community Development Block Grant-Disaster Recovery reimbursement funds to building reserve funds after management warned reimbursement money might not arrive in time.

Directors also voted to reprogram Tourism Month funds toward recovery-related activities, including $5,000 for Saipan and $2,500 each for Tinian and Rota.

Another lengthy discussion focused on the future of MVA’s Japan and Korea offshore offices as existing contracts near expiration. Management presented three options ranging from maintaining full overseas offices to managing both markets directly from Saipan.

Taijeron said management favored a hybrid approach using local market liaisons while shifting strategy and campaign management to headquarters, which could save between $150,000 and $200,000 annually.

However, directors including Gerrard and newly sworn in MVA member Kwang Joo “Tommy” Kim cautioned against moving too quickly away from full in-country representation, stressing that relationships and cultural familiarity remain essential in Japan and Korea.

The board ultimately created an ad hoc marketing committee chaired by Guerrero to further study the offshore office issue and make recommendations before the next board meeting.

In executive session, the board also discussed relocating the MVA office from the Gold Beach Hotel in Garapan to the former Japanese Lighthouse property atop Navy Hill, a move an official said could save roughly $75,000 annually in lease-related costs.