Projected changes in Guam's tourism industry - KUAM.com-KUAM News: On Air. Online. On Demand.

Projected changes in Guam's tourism industry

Posted: Updated:

Big changes are coming to Guam's billion-dollar tourism industry - with the island's second largest visitor market positioned to take the top spot in the coming years. Business is booming in Guam's number one market, but as Guam Visitors Bureau general manager Nate Denight told the Rotary Club of Northern Guam this week, work needs to be done to keep the tourism industry thriving, especially considering the radical shifts in the existing market.

"In 2016 we had 1.5 million [visitors], so a big growth. The tourism market, it's really been changing, the visitor arrival mix," said Denight.  While Japan has been Guam's top market for the past two decades, arrivals from Korea could soon take the top spot. Last year, arrivals from Japan made up 49% of visitors, while those from Korea made up 34%. The shift may be related in part to airline seat capacity, with only four airlines servicing Japan, and five servicing Korea.

A sixth airline - Air Seoul - is expected to enter the Guam market later this year. "Number one," said Denight, "Guam has seen a decline in Japan and part of that reason is the air seats as I mentioned 3733 but Guam has become a more expensive destination, so the average package price for Guam 5 years ago was about $700, we're over $1,000. So you're talking about a 30-40% price increase."

This shift is noticeable in the average room rate, which has grown from $130 per room night five years ago to $198 per room night today. "The time we're in has been the most change and disruptive time in the travel industry that we've ever seen," he continued.

As the Korea market grows, Denight said the island can expect to see a range of visitors - from families, to budget and high-end spenders. Meanwhile Japan is seeing an increasingly aging population, which is why GVB is hoping to hone in on the country's silver market.

"We're shifting in Japan to show Guam more as a preview destination rather than a budget destination, not offering those $200-300 packages, and of course, you're going to lose some volume by doing that. But in the long-run, I think that's the way it has to be in Japan because the market's not expanding," Denight added.

With tourism employing over 20,000 jobs and bringing in roughly $240 million in taxes every year, Denight said the island needs to continually invest in infrastructure and culture in order to propel the industry toward its goal of bringing in 2 million visitors by 2020. 

  • NEWS HEADLINESMore>>

  • DYA hosts youth outreach

    DYA hosts youth outreach

    It's the second of its kind happening this year. The Department of Youth Affairs hosting its youth services outreach event over the weekend. DYA partnering with other government and non-profit organizations to put on the event for our youngsters. The goal - to provide services and information to families who are not aware of the resources available to them in the community. It's efforts officials say is being offered to help keep kids out of trouble.

    More >>

    It's the second of its kind happening this year. The Department of Youth Affairs hosting its youth services outreach event over the weekend. DYA partnering with other government and non-profit organizations to put on the event for our youngsters. The goal - to provide services and information to families who are not aware of the resources available to them in the community. It's efforts officials say is being offered to help keep kids out of trouble.

    More >>
  • Eco-friendly shopping bag bill authored by youth leaders

    Eco-friendly shopping bag bill authored by youth leaders

    A bill that would ban the sale and distribution of fossil fuel-based shopping bags has been passed over by the Guam Youth Congress to the Legislature. The bill's sponsor, Youth Speaker Javan Santos states, "The youth support minimizing waste and protecting our ocean and island, and this bill seeks to do that for the youth to inherit a cleaner Guam." The committee on rules will refer the measure to a legislative committee.More >>
    A bill that would ban the sale and distribution of fossil fuel-based shopping bags has been passed over by the Guam Youth Congress to the Legislature. The bill's sponsor, Youth Speaker Javan Santos states, "The youth support minimizing waste and protecting our ocean and island, and this bill seeks to do that for the youth to inherit a cleaner Guam." The committee on rules will refer the measure to a legislative committee.More >>
  • Senators ensuring schools have active shooter protocol

    Senators ensuring schools have active shooter protocol

    Double- and even triple-checking that they have active shooter standard operating procedures and drills in place, Senators Joe San Agustin and Wil Castro issued a notice to schools across the island. The joint effort comes days after a deadly shooting at a high school in South Florida. 17 people died in that shootout. Guam police also stand ready to assist schools in creating a plan for their campus. To set that up, call GPD's Captain Paul Tayama at 475-8508/9.More >>
    Double- and even triple-checking that they have active shooter standard operating procedures and drills in place, Senators Joe San Agustin and Wil Castro issued a notice to schools across the island. The joint effort comes days after a deadly shooting at a high school in South Florida. 17 people died in that shootout. Guam police also stand ready to assist schools in creating a plan for their campus. To set that up, call GPD's Captain Paul Tayama at 475-8508/9.More >>
Powered by Frankly