Customs proposes 27% increase in air passenger fee

by Mindy Aguon

Guam - With an annual shortfall of about one million dollars a year, the Guam Customs and Quarantine Agency is looking to increase its air passenger fees tentatively beginning in May. The current fee, which is paid by airline carriers, is $6.36. Customs is proposing increasing the fee to $8.29, which equates to a 27% increase.

The agency hasn't modified its fees since 1998.  Lawmakers expressed concerns about whether the airlines would be amenable to the increased fees that must go through the administrative adjudication process and then garner the governor and legislature's approval. 

Customs Chief Ralph Sgambelluri said, "In regards to the stakeholders at the airport, I think it's palatable it's something acceptable because the number is like you said the analysis of other airports within our vicinity also, it's something it's easy to absorb. It's not something we're shooting for the moon. It's something we shot numbers that would be acceptable to the airlines."

Customs officials say the additional revenue will improve services they provide at the airport and also allow for the hiring of an additional 40 officers.  If approved the fee would be reviewed again in three years to see if it needs to be adjusted.  

A suggestion was brought up to have the airport stop charging customs two million for rent each year in lieu of increasing the fees.  The airport however has said it cannot do that under its bond covenants and federal mandates.