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MVA suspends offshore contracts

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CITING its “dire revenue situation” and the global lockdown due to Covid-19, the Marianas Visitors Authority has suspended the contracts of its offshore offices due to lack of funding.

Board member Ivan Quichocho said on Wednesday that the suspension will continue “until such time that our revenue situation and tourist arrivals improve.”

He added, “The [contracts] will be mobilized when we’re at a fiscal position to execute those contracts.”

MVA board acting chair Gloria Cavanagh said the Taiwan contract with AVIAREPS was suspended earlier this year.

“Since…the contracts for both [AVIAREPS in] Taiwan and [Access Inc. in] Japan end this month, we have an option to renew for one year,” she said in an email. “We are taking that option.  However, for Taiwan we will continue the suspension.  This means suspension as opposed to termination. This allows us to mobilize if we are at the fiscal position to do so or if there is a travel bubble opportunity in Taiwan. The [proposed] change in the [contract] amount for Access has not yet been offered to them.  The [MVA board] meeting [on Wednesday] was to decide the parameters for negotiations of renewing the contract. They [Access Inc.] obviously have not accepted this as we had just decided this today.”

At the board meeting, Cavanagh said MVA wants to reduce the monthly contract amount for Access Inc. to $20,000 from $40,000 while  AVIAREPS’ will be reduced to $75,000 from $250,000.

“Whether or not they would agree to it, we’ll have to see,” Cavanagh said during the board meeting.

MVA Managing Director Priscilla Iakopo said the Access Inc. contract will expire this month while AVIAREPS’ was suspended in April and will expire on Sept. 30, 2020.

“There’s no money,” Cavanagh said. “The projections that we see for fiscal year 2021 are dismal. So we want to make sure that we can pay the contracts we enter into.”

 

 

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