What's in store for Guam's tourism industry after a mass exodus of longstanding luxury retailers and struggling businesses five years on the road to recovery post-pandemic? And how will the public and private sector work together to keep the industry afloat? With the iconic T Galleria by Duty Free Shoppers announcing their closure earlier this week, that’s the lingering questions on many minds. 

With chatter on the streets for months, the news of DFS Guam closing down didn’t come as a surprise to the Guam Chamber of Commerce.  Chairman Tae Oh says its why the Chamber has been pushing hard for the Business Privilege Tax cut from 5% to 4% – to help “salvage the situation” in Tumon and keep struggling businesses afloat. But the longstanding retailer is not alone in its exit, and Oh says the tax relief came “too late.” 

"My message yesterday at the Chamber meeting was that the BPT reduction came a little too late to save some businesses," he told KUAM News. "As you are probably aware, DFS has announced their closure. Hard Rock has announced their closure. There’s actually several other businesses."

After nearly 55 years on Guam, DFS announced it will shut its doors by March 31, 2026.  The chairman adds Rolex, which testified for the BPT tax, is also in the process of closing-up shop. Plus further down the strip, Tumon Sands Plaza remains void of high-end brands.

When asked if this marks an end to luxury tourism in Guam, Oh commented, "It’s hard for me to say. I don’t want to put that final nail to the coffin. I don’t want to predict that it’s going to be doom-and-gloom for Guam. That’s not what the Chamber is about."

But Oh adds its clear retailers and restaurants are struggling. And the mass exodus, he says, will have an impact on Guam’s appeal to visitors. 

"For a typical visitor coming from Korea or Japan, DFS has always been an iconic landmark here on Guam. For them, it's one less thing to do," he said. "And it was such a major part of what visitors did on Guam."

The weak Japanese Yen and Korean Won against the United States Dollar isn’t helping recovery efforts. The latest data from the Guam Visitors Bureau shows arrivals remain below half of pre-pandemic levels. 

Moving forward in the next few years, the chairman says the public and private sector must work together to figure out what kind of destination Guam wants to be. "Do we want to be a beach destination? Do we want to be a beach destination plus entertainment? Those are things we need to consider," he said.

"We need to give tourists more things to do. That’s one thing that tourists definitely do complain about. The blight is another thing a lot of people mention. We need to clean up our product. We need to ensure our streets are clean. We need to make sure that some of these facilities are not defaced.

"So that’s what the Chamber has been really working hard on."