Guam’s visitor industry is in urgent need of a turnaround, but many in the community don’t realize how dire the situation is.
That’s the message from a group of visitor industry leaders who released a new “Guam Tourism Situation Report,” which states that after four years without significant gains in arrivals, Guam’s tourism industry has reached a “crisis” level.
The report stated that the economic boost by the military buildup has “masked Guam’s tourism crisis, leaving many outside the industry unaware of the severity.”
For example, it said the Asia Pacific region has recovered to 92% of pre-pandemic levels, except for Guam.
According to the report, the number of Korean outbound travelers is nearly back to pre-pandemic 2019 levels, “yet Guam arrivals are down 50 percent.”
Japan’s outbound level is at 60% of 2019 numbers, “but Guam is at 30-percent for Japan,” it added.
As a result, numerous businesses have closed, such as former top tourist stops such as the Tumon Sands Plaza and Atlantis submarines, and thousands of jobs have been lost, the report said.
The report included a letter from Tourism Economics, an Oxford economics company, which described the domino effect of the sharp decline.
“The collapse in visitor activity has suppressed air service accessibility and is causing the failure of the attractions, experiences and accommodations that underpin the industry,” it said. “Action to support the visitor industry is especially vital because of its importance to the Guam economy.”
The report included a draft short-term recovery plan that seeks immediate action to jump-start Guam’s recovery, which it described as among the slowest globally.
Without intervention, the report said, there is little reason to expect a meaningful change in visitor arrivals, which is expected to top off at a combined 600,000 for Korea and Japan this year, compared to 1.4 million in 2019.
But with action, the report said, the arrival numbers can realistically reach 850,000 in 2025 and a return to a record 1.4 million by 2027.
The report said turning Guam’s tourism industry around would require:
- Transparency in communicating the industry’s precarious state.
- Strong leadership through focused execution by the Guam Visitors Bureau and its board.
- Smart goals with clear, actionable objectives for management action.
- Investment and substantial financial backing.
- Collaboration through a unified effort from GVB management and board, and industry leaders.
The report also calls for spending some $50 million over the next two years on key initiatives that include airline incentives, targeted marketing, signature events and capital improvements.
The report was authored by a group of tourism executives with input from current and former GVB members, organizations, businesses and individuals with extensive tourism experience.
It said additional contributions are anticipated from various stakeholders, “with the understanding that the short-term tactical recovery plan is highly time sensitive.”
The plan has the backing of Gov. Lou Leon Guerrero, who made a rare appearance at a GVB board meeting on Thursday, where GVB Board Chairman George Chiu passed out copies of the report.
Leon Guerrero set a two-week deadline for GVB management to review the proposed action plan, “and work through it and bring something back that can be approved by the Board,” she said.
That’s a faster turnaround time than what the report had contemplated. It said “feedback from GVB and tourism leaders is needed within 30 days to ensure rapid implementation.”
At the governor’s direction, the two-week deadline would fall on Nov. 7.
This post was originally published on here
