MVA Seeks $10.9M Budget for Tourism Recovery and Market Expansion

The Northern Marianas Commonwealth Legislature convened on July 20, 2025, to discuss critical funding scenarios for the Marianas Visitors Authority (MVA) aimed at revitalizing the local tourism industry. The MVA presented three budget scenarios, highlighting the potential impacts on tourism and the economy.

In the first scenario, the MVA seeks a budget of $10.9 million, which would enable enhanced marketing efforts, active negotiations with airlines and travel agencies, and the development of new travel products. This investment is projected to increase visitor arrivals significantly, with estimates suggesting a rise from 167,000 to 224,000. The anticipated hotel occupancy tax collections would be around $7.9 million, resulting in a net collection of $5.7 million after deductions. The MVA emphasized that this funding is crucial for maintaining strong airline partnerships and ensuring stable air service, ultimately leading to greater visitor satisfaction and a stronger image of the Marianas.

The second scenario proposes a reduced budget of $6.4 million, which would allow for ongoing marketing but limit innovation and growth. While this budget would sustain current operations and prevent job losses, it risks stagnation in the tourism sector, leading to unstable airline services and declining traveler confidence. The MVA projects hotel occupancy tax collections of $4.9 million under this scenario, necessitating additional legislative funding of $2.8 million.

The third scenario, with a budget of $3.584 million solely from hotel occupancy tax, would result in severe cuts to marketing and promotional activities. This scenario would lead to the cancellation of key community events and a reduction in staff hours, ultimately risking economic collapse and a significant drop in visitor arrivals. The MVA anticipates that this budget would yield only $4.9 million in hotel occupancy tax, resulting in a $2.8 million shortfall.

The MVA urged the legislature to consider the first scenario as the most viable option for tourism recovery, emphasizing that the funding would benefit not only the authority but the entire community. The meeting concluded with an invitation for questions and discussions, highlighting the urgency of addressing the tourism sector's challenges.