MVA seeks full allocation of hotel tax for CNMI tourism recovery initiatives

The Northern Marianas Commonwealth Legislature convened on July 20, 2025, to discuss critical strategies for revitalizing the local economy, with a strong emphasis on the tourism sector. The meeting highlighted the importance of tourism as a key driver of revenue for the Commonwealth, underscoring its role in supporting various public services and community welfare.

During the session, officials acknowledged the current economic challenges facing the CNMI, including limited revenues and pressing governmental priorities. They stressed that tourism must remain a top priority, as it not only generates income but also stimulates broader economic activity. Every visitor welcomed contributes to the local economy, supporting retirees, municipal governments, and essential services like public safety and education.

The discussion also pointed out the fragility of flight services and the increasing global competition for tourists. Officials warned that without immediate investment in tourism, the Commonwealth risks losing the progress made in recent years. They noted that the recent suspension of the EVS tap program resulted in a significant loss of over $60,000 in hotel occupancy tax revenue, which directly impacts community services.

A call for diversification in tourism markets was made, emphasizing that reliance on a single market, such as Korea, is unsustainable. The need for a balanced approach to marketing across various countries was highlighted to ensure stability and growth in visitor numbers.

The meeting concluded with a request for legislative support to allocate the full projected hotel occupancy tax to the Marianas Visitors Authority (MVA), supplemented by additional funding from the general fund. This funding is deemed essential for meeting the recovery needs of the tourism sector this year.

The MVA's leadership, under Chairman Warren Sablan, presented their strategic plans for tourism recovery, which include enhancing destination marketing, enriching community experiences, and maintaining the islands' appeal for visitors. The agency aims to promote the Marianas as a premier destination while ensuring a high quality of life for residents.

Overall, the discussions at the meeting underscored the collaborative effort required to lead the recovery of the tourism sector, which is vital for the economic future of the Northern Mariana Islands.