CNMI's hotel group appeals for federal support amid possible shutdown of Korea-Saipan route

Several shops in the once vibrant Garapan Square on Saipan are now close due to low foot traffic. Photo by Mar-Vic Cagurangan/Pacific Island Times

By Mar-Vic Cagurangan

The Hotel Association of the Northern Mariana Islands is pushing for federal policy changes to help stabilize the commonwealth's fragile tourism amid another setback posed by the possible shutdown of Korean carriers' Saipan route.

The hotel group has joined a call for the U.S. Department of Transportation to grant the CNMI a waiver from cabotage restrictions and consider the commonwealth for Essential Air Service designation.

T’way Air and Jeju Air have closed their reservations on the Korea-Saipan route as of March 28, pending assessment of their summer 2026 operations.

Dennis Seo, chairman of the hotel association, raised concerns that daily services between Saipan and the CNMI’s largest source market may be suspended “unless timely solutions are identified.”

The federal Essential Air Service program is designed to ensure that small communities maintain a minimum level of scheduled air service with federal subsidies for airlines when necessary.

“We strongly encourage continued collaboration to explore practical, policy-compliant measures, such as marketing and demand-support initiatives, that may help prevent a full suspension of service and maintain essential air connectivity during this sensitive period,” Seo said. 

The Korean market accounts for 63 percent of the CNMI's total visitor arrivals.

The Marianas Visitors Bureau previously noted that Korean carriers have been experiencing operational challenges on their CNMI route due to broader industry conditions, including a strong U.S. dollar and regulatory seat-capacity obligations on the Korea–Guam route following the Korean Air–Asiana Airlines merger. The CNMI is also facing increasing competition from emerging beach destinations in Japan and Vietnam.

The predicament has led to a 60 percent decline in air seats from South Korea over the years.

Flight operations have been unstable, with lone air carriers Jeju Air and T’way Air frequently suspending or reducing flights over the last year and a half.  The number of flights from Seoul decreased from 88 in December 2024 to 60 a year later. The source market recorded 8,577 arrivals in December 2025, a 40 percent decline from December 2024. 

"Seasonal charters are helping to buoy the marketing during the winter season, with Air Busan operating twice weekly charter flights from Busan to Saipan and T’way Air operating twice weekly charters from Seoul Incheon to Saipan through Feb. 28," MVA said in a report last month. 

Total arrivals in December 2025 were recorded at 14,922, a 24 percent decrease compared to 19,598 visitors in December 2024.  

“Tourism is the primary economic driver of the Marianas, yet the industry remains significantly below pre-pandemic levels due to a convergence of ongoing challenges,” Seo said in a statement.

Warning that the potential loss of the South Korea air service “represents a severe and immediate threat to the economic stability of the commonwealth,” Seo underscored the need for federal support to stem the market's further decline.

“From the hotel industry’s perspective, uninterrupted air connectivity from Korea is essential,” he said.

Jeju Air currently flies daily between Seoul and Saipan. The carrier previously doubled its service in the fourth quarter of 2025 and often adjusts frequencies based on demand, following a period of reduced flights. 

“Korea remains one of Saipan’s most important and dependable source markets, and any disruption would have immediate and far-reaching consequences for visitor arrivals, hotel employment, small businesses, and the broader tourism-driven economy,” he added.

MVA has noted that the CNMI continues to face a significant reduction in air seat capacity over the last seven years, dropping from approximately 760,000 in FY 2018 to 250,000 in FY 2025, a 67 percent decline.

Arrivals from China form another fragile market, given some U.S. lawmakers' recurring call for the end of the U.S. Homeland Security’s Economic Vitality & Security Travel Authorization program, which allows pre-screened Chinese travelers to visit the CNMI for up to 14 days without a visa.

Seo said the Chinese market remains a key driver of long-term tourism recovery and that the continuation of the EVS-TAP program is essential to the industry.

“This statement is not intended to assign blame, nor does it represent the interests of any single business. Rather, it reflects the collective concern of the hotel sector regarding the broader public interest and the stability of the destination,” he added.

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