The Hotel Association of the Northern Mariana Islands (HANMI) reported a steep drop in hotel occupancy—down 30% from August 2024—marking the lowest non-pandemic August rate since tracking began in 1992. Of 64,012 available room nights, only 19,895 were sold. Average room rates also declined, falling to $127.09 from $143.17.
HANMI Chairman Dennis Seo attributed the downturn to the Korean Air–Asiana Airlines merger, which triggered a mandated oversupply of seats to Guam. Korean Air and its affiliate Jin Air increased flights to Guam to meet a 90% seat quota, operating up to six daily flights from Seoul.
“These merger policies don’t reflect actual consumer demand,” Seo said. “The oversupply into Guam has directly impacted Saipan’s market, despite August being peak season.”
Meanwhile, CNMI continues to face unstable air service from Korea, its primary source market. Jeju Air and T’way Air suspended multiple flights due to low ticket sales and high fares, leaving only one daytime flight from Korea to Saipan for much of August.
Seo warned that without stabilized air service, tourism growth will remain constrained and government revenue will suffer.
HANMI is pursuing winter charter flights from Busan and expanded service from Hong Kong. The group is also advocating for the reinstatement of Annex VI under the U.S.–China Air Transport Agreement to reopen access to mainland China routes.
Seo said restoring CNMI’s competitiveness will require swift infrastructure upgrades and the return of cultural attractions such as the night street market.
“We must give tourists compelling reasons to choose the Marianas over competing destinations,” he said.
