VIDEO: Saipan Report – CNMI’s Visitors Authority Faces $2 Million Debt

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Guam – In the CNMI,  it’s an up-hill struggle for the Marianas Visitors Authority in its efforts to promote and revive the Commonwealth’s struggling tourist industry because the Authority is more than $2-million dollars in the hole.

The Saipan Tribune reports that the Authority has incurred over $2 million in liabilities for the first quarter of the fiscal year 2011.

The Commonwealth’s tourism body owes about $1 million to its offshore office in Japan, over $700,000 to its office in Korea, and $300,000 to local vendors

MVA said it is supposed to get $1.5 million from the central government every quarter but it has received only about $350,000 covering October to December 2010.

Dwindling government resources has resulted in delays in the release of funds to MVA and due to this its obligations to international and local vendors have been affected.

This fiscal year, MVA expects to get about $6.38 million from the central government. Of the amount, a mere 13 percent is earmarked for personnel cost, while 87 percent is allocated for operations including promotions.