HANMI records lowest occupancy rate in the last three decades; Seo says more Korean flights needed

Hotel occupancy in the Northern Mariana Islands fell to its lowest level in more than a decade.

The Hotel Association of the Northern Mariana Islands reported a 14.87% average occupancy rate among 11 member hotels for September 2025 — one of the lowest since 1992, excluding the COVID-19 pandemic peak.

A total of 9,203 of 64,905 rooms were sold during September 2025, a drop by roughly 30% compared to last year, despite the average room rate being the cheapest it has been since 2013. 

HANMI said that visitor arrivals to the NMI continue to decline from its primary source market, South Korea. The association said flight competition, unfavorable exchange rates, an oversupply of air seats to Guam, the global aircraft shortage, and loss of destination competitiveness are among the factors that are causing arrival numbers to dwindle. 

“It is a perfect storm of factors working against our destination right now,” said Dennis Seo, HANMI chairman. 

Seo said that the Korean Air and  Asiana Airlines merger in 2024 have caused a devastating effect on airfare rates to the NMI. 

The merger included requirements which mandates a 90% seat supply on “routes deemed important” which include the Guam route HANMI said. 

“Out understanding is that the Korean Community of Saipan is filing an official request for reprieve from the Korean Fair Trade Commission due to the devastating effect this is having on local businesses,” Seo said. “HANMI will work together with the leaders of the Korean Community in the [Northern] Marianas on a letter supporting their petition, and all affected companies and agencies are encouraged to join this letter-writing campaign.” 

HANMI expects air service to the NMI in 2026 to be unstable if nothing changes. 
Jeju Air is the only airline flying between South Korea and the NMI, flying daily between Seoul and Saipan.  T’Way Air is expected to resume flights starting Nov. 23 for a limited term for the same route, while negotiations are underway for a Busan-Saipan route that is scheduled to begin Dec. 23. 

Several of HANMI’s member hotels are now in discussion with air carriers and the Marianas Visitors Authority to mitigate flight loss which include purchasing air seats through a hard block agreement. The agreement could include financial penalties for unsold seats or special benefits to consumers in South Korea who purchase Saipan travel products. 

Additionally, the association is seeking the reinstatement of Annex VI under the U.S. Department of Transportation’s U.S.-China Air Transport Agreement which provided an exemption for the NMI from the limit of the number of scheduled U.S.-China flights. mbj