McCoy: Increasing airport landing fees could lead to cascade effect

September 15, 2023

The Benjamin Taisacan Manglona International Airport.
CONTRIBUTED PHOTO

Increasing airport landing fees could lead to a cascade effect that ultimately will result in a decline in business and tourism in the CNMI, according to the Rota Chamber of Commerce.

Steven McCoy, president of the Rota Chamber of Commerce, said such an increase of landing fees will cause higher operational costs for airlines, which could then result in reduced flight options and higher ticket prices.

McCoy expressed the Chamber’s concerns over the impending increase in airport landing fees in an email yesterday to Sen. Paul A. Manglona (Ind-Rota), who chairs the Senate Public Utilities, Transportation & Communications Committee.

He said while they understand the need for revenue generation and infrastructure improvements at airports, they are deeply concerned about the potential adverse consequences of increasing landing fees.

To keep CNMI airports open, the Commonwealth Ports Authority board recently adopted a new rate methodology that reflects a 90% increase in landing fees and a 79% increase in terminal fees starting Oct. 1, 2023.

McCoy requested reconsideration and encouraged a dialogue between the Chamber and Manglona’s office to explore more sustainable and equitable solutions for funding airport improvements.

McCoy asked to consider the delicate balance between revenue generation and fostering economic development.

“We believe there are alternative methods to support our airports and their infrastructure needs while avoiding undue financial strain on our local businesses and residents,” he said.

The Chamber president said local businesses, both small and large, rely heavily on efficient and cost-effective air travel connections to engage in commerce, attract investors, and foster economic growth.

View the article: https://www.saipantribune.com/news/local/mccoy-increasing-airport-landing-fees-could-lead-to-cascade-effect/article_86ad1e68-52e4-11ee-bd12-a31d61dac13d.html