Conference committee debates $960,235 tourism stabilization request; MVA urges keeping full allotment

The conference committee opened extended discussion on House Bill 24-96 SD1, a measure to appropriate approximately $960,235 from tobacco settlement funds identified by the governor (governor’s communication 24-103) for tourism stabilization following Super Typhoon Sinco. The committee did not adopt HB 24-96 during this session and recessed to allow further consideration.

Public comment and MVA testimony framed the committee’s discussion. Judy Torres, speaking for the Marianas Visitors Authority, urged conferees to maintain the full appropriation. “Tourism is not an expense. It is the engine that funds our recovery,” Torres said, arguing cuts would cost the Commonwealth more than they would save. Torres said airline seat capacity is down about 66% from 2018 and visitor arrivals are at historic lows; she noted T‑way ceased operations in May and said the $960,235 would address two priorities: airline service stabilization and activation of the destination brand.

Committee members pursued detailed questions of the acting managing director and MVA staff during a committee-as-a-whole session. Torres reported that some hotels (Crown Plaza, Kensington, Aqua Resort, Saipan Road Resort) were accommodating FEMA and relief workers and that average occupancy in some properties ranged from about 60% to 70%, but that available room inventory is reduced because several hotels remain closed or have damaged inventory. She told conferees that United’s Narita service is scheduled to resume August 2 on a three-times‑weekly schedule and that Philippine Airlines postponed resumption until October.

Senators and representatives raised concerns about the proposed bill language that would permit reimbursement and re-appropriation of funds if federal reimbursement becomes available, asking whether such language is administratively workable and whether FEMA reimbursement can be relied on. A Senate conferee noted SD1 already includes monthly reporting by mayors and re-appropriation language for reimbursed funds; others urged caution about adding provisions that could create an undue administrative burden on municipalities.

Members pressed the MVA on how additional funds would be allocated if the committee approved the measure. Torres said the priorities are air stabilization (joint promotions, support for carriers facing higher fuel costs, seat guarantees) and brand activation (a “welcome back” campaign and coordinated local activities), but she did not provide a detailed line‑item breakdown of the $960,235 during the session.

The committee rose back from the committee-as-a-whole after the questioning; the House conference reiterated a preference to revert HB 24-96 to the House version while the Senate offered a smaller adjustment (a $50,000 item referenced in the transcript) that required further internal consultation. The committee recessed to reconvene at 1:00 p.m.; no final vote on HB 24-96 was recorded in this meeting.

Next steps noted in the hearing record include additional Senate–House consultations on draft language and Legislative Attorney drafting of any agreed conference report if the parties reach final terms.