:: Find Saipan ::

“Fitial off to Japan next week” declares today’s (June 5th, 2007) copy of the Saipan Tribune. Fitial is once again on his crusade to try to woo back Japan’s airlines to Saipan. Though I applaud him for his efforts, I would like to warn him that he is starting to look more like a jilted stalker. From the start of Fitial’s administration, perhaps even before, Fitial has shown an obsession to bringing Japanese to Saipan. Sure, Saipan’s history with Japan has had its ups and downs, and it certainly looks like we’re at a down point now. I want to pose the question though, have these trips shown any progress whatsoever? Or is this an effort to boost Northwest’s load factor percentage? The CNMI has long shown a preference towards the Japanese tourist, but is this preference now baseless? Arrivals from Japan have decreased, as have investors. Heck, Japanese investors are fleeing the island as if a tsunami is coming! Northwest airlines have been blamed for the reduction in tourists due to their proposed change from the larger 747s to the Airbus 330s. The papers quote:

Fitial said there is no reason for the seat or flight reduction because Northwest “is currently enjoying an average load factor of 93 percent” using its 747s at daytime.

93%? The last several times I have rode on Northwest’s 747s, all the seats around me were empty. The plane was perhaps 40%-60% full. Take a look at the planes, they are 747 – 200! 200! These planes are about 30 years old! Northwest, if they were at 93% load factor, would have no financial reason to downsize their planes. Closer to the mark is this:

Airlines have cited the low profit margin as a major reason for discontinuing direct flights to and from Saipan.

Ok, so how would an airline be earning a low profit margin if they are at 80-90% load capacity? Well, how did they get 80-90% load capacity? Bargain pricing. I’ve been traveling to Japan from Saipan for $420. I’m not an expert on the airline business, but when the usual price is around $600 to $700 dollars a seat for economy from Narita to Saipan, then we can pretty much guess that Northwest doesn’t make that much money from the flight. Northwest has no reason to increase their capacity, because there is no demand at the price level at which they can earn a decent profit! Larger planes have been shifted to Guam, which offers Japanese better bang for their yen. If anything, the newer Airbus 330’s are better equipped with in-flight amenities, and should raise the overall quality of the flight experience, making Saipan’s route more competitive.

Ok, lest I earn the wrath of Keiki N. Santo, and be accused of only complaining without offering solutions, let’s talk about something positive. Asiana Airlines and its parent company, Kumho Asiana, has shown clear commitment to developing the Korean market. While the Japanese investors have sold their hotels and pulled out their airlines, Korean investors have stepped in and them snapped up. There are probably more Korean – owned hotels on Saipan now than Japanese owned. Market momentum thanks to the efforts of Asiana and World Resort (a Korean – owned hotel) have raised Korean arrivals steadily.

Consider Asiana. Asiana bought Lao Lao Bay Golf Resort. They are investing in a new hotel. They have increased service to Saipan. Go to their Korean webpage: http://flyasiana.com. What’s that on the left? Is that an ad promoting Saipan? Ohh, what’s that on the right? Isn’t that a picture of a golf course in Saipan? I think so! Asiana’s webpage, on the front page, has at least 2 images promoting Saipan! There may be more, but I can’t read Korean. Go ahead, click on it. Hey, that looks pretty nice! And it even clearly splashes Saipan across the picture, in English. Now take a look at Northwest’s webpage in Japan: http://www.nwa.com/jp/jp/home.html. No pictures of tropical paradise… I think I see Micronesia mentioned on the page though… Instead, we see pictures promoting their frequent flyer program, WorldPerks… They are doing a promotion for their Airbus 330’s to Hawaii, Guam, and Saipan. It’s the first link at the top. Hmm, not quite the same is it?

World Resort, stripped PIC’s claim to the Korean crowd when investors dumped money into a first class water park. This not only increased Saipan’s profile as a tourist attraction for younger people and families, but raises the bar of what’s expected from hotels expecting to do business in Saipan. Even the Japanese tourists want in on World Resort’s theme park. Not only did World Resort commit financially, they followed though by constantly promoting the hotel in Korea though cross promotions like the Korean drama that was filmed here, as well as the beauty pageants and cultural events. World Resort Hotel made regular screen time in Korea, and along with it, Saipan.

People may argue that Japan is still Saipan’s largest tourism market. That may be the case, but the trend is still downward. We should ride, no, BOLSTER, the upward momentum of Korean arrivals. There’s no shame in Koreans becoming the number one arrival if it means an increase in our tourism industry.

Korean, Russian, Chinese, Japanese. Anyone should be welcomed, and if investors have the money and the will to promote the CNMI, then we should be assisting them. Its time to put aside our infatuation with the Japanese and just realize that their interest with us may be at an end. Its time to move on and work on developing new tourism markets. Markets where the domestic economies are strong and have disposable income. Look for countries close enough to Saipan for a weekend trip, and where the people would be interested in what Saipan has to offer, such as great golfing and diving at reasonable prices. That all points towards Korea’s strong economy and closes presence. Its time to stop your Japanese lessons, and start learning Korean, as soon as there is a Korean language school set up… Korean, Russian, Chinese, Japanese. Anyone should be welcomed, and if investors have the money and the will to promote the CNMI, then we should be assisting them. End the stalking now, and lets be proactive in supporting our next benefactors. Instead of sending delegation after useless delegation to Japan, why don’t we focus or money, time and effort in supporting World Resort and Kumho Asiana in making Saipan the number one destination for Koreans?