Guam Tourism & Visitor Bureau

1. Guam Visitor Bureau
Nikita Simran Aishwarya Rajarshi Karan Lokendra Zahid Nishant Yash DivyaK

2. Index
1. Summary
2. SWOT
3. Internal Hurdles
4. Stakeholders in the Distribution Flow
5. Positioning of various Markets of Guam
Visitor Bureau
6. Analysis of Business Performance
7. Improvement Suggestions
8. Examination of Tourisim Industry

5. Territory of Guam
 Located in the western Pacific Ocean,
 The largest and southernmost of the Mariana Islands,
and the largest island in Micronesia.
 Guam is one of five American territories with an
established civilian government.
 Population : Ethnically Diverse :
- Chamorro - Filipino - White - Other Asian
- - Other Pacific Islander....

6. Revenue Generators :
 U.S. ‘s two permanent military bases :
• The Commander Naval Region Marianas Main
Base
• Andersen Air Force Base
 Tourism
• 60% of the island’s gross revenue
and
• 35% of the total jobs on Guam was due to tourism

7. Our Case ::
 Guam, which was once a hot tourist location, has begun
to lose favour with tourists and now has stiff competition
from other destinations.
 “the Miracle of Guam” – the period of Rapid Growth is
over
 As the GM of Guam Visitors Bureau,
-- Eddie Reyes --
is faced with the task of turning around the island’s
fortunes.

8. Guam Visitors Bureau

9.  Map : the Location of Guam in the proximity of
other Islands that came up as a competion

11. Strength
• Proximity to Japan, Korea and major Asian countries.
• Image of pristine resort environment.
• Unspoiled, natural and uncrowded environment.
• Multicultural community.
• A diversity of activities within island, especially targeting families.
• Duty-free market and largest K-Mart.
• Pleasant weather throughout the year.
• Visa waiver program for Japanese and Korean tourists.

12. Weaknesses
• Inadequate infrastructure.
• Unable to deliver continuous service quality.
• Rare repeat visits/limited opportunities for longer stays.
• Limited investment capital on the island.
• Local population unfriendly attitude towards tourists.
• Graffiti, litter and dirty public spaces gave impression of public apathy.
• Visitors’ complaint on lack of activities, events and things to do on Guam.
• Slow decision-making process within GVB.
• Low visitor retention rate

13. Opportunities
• China is a huge potential market.
• Increasing affluence of regional Asian consumers.
• Educational and sports tourism.
• Underutilized air route authorities.
• Underdeveloped cruise market.
• Opportunities for sophistication.
• Improved transport services on Guam.
• Unique activities.

14. Threats
• Great impact by the airlines on number of visitors and business
performance.
• Prices were 1.3 to 1.5 times higher than on landlocked destinations.
• Negative macro-economic and political developments.
• Sophisticated tourism in competitor countries.
• Local activism against tourism.
• Insufficient budget due to cash-strapped government.
• Interest groups’ conflicts.

16. # In-house meeting facilities
# Improve continuous service
quality
# Overcome slow decision making
process
# Organization’s members with
low business acumen
# Political tension
# Very few cruise ship docked in
Guam
# Stoppage of flight service, citing
poor business, would affect
Guam’s business performance
# Commodities at Guam were
expensive as compared to
landlocked destinations as they
had to be transported through
ships.
# Problems with signage boards
# Limited skilled and unskilled
labour
# Regional destination
competition
# Cost and availability of airline
fuel
# Natural disaster / typhoons
HURDLES

17. How We Get There ?
Eight core objectives to achieve a paradigm shift.
1. Improve Quality and Yield.
2. Grow Arrivals and Diversify.
3. Add High-End Hotel Rooms, Incentivize Reinvestment.
4. Focus on Meetings, Incentives, Conferences and Exhibitions (MICE).
5. Promote the Chamorro Culture and Unique Multi-cultural Diversity.
6. Extend Average Length of Stay.
7. Promote Our Unique Attractions..
8. Extend Tourism Beyond Tumon.

18. As Guam’s largest economic sector,
tourism is viewed as a priority sector to
achieve sustainable economic growth
and
reduce Guam’s dependence on U.S.
Federal subsidies.

20. GHRA
GTF
JGTA
Stakeholders in
Distribution flow

22. Star:
Hong Kong, Korea, Taiwan &
China
Question Mark:
Russia, Philippines
Cash Cow:
Japan
Dog
MARKET SHARE
High Low
M
A
R
K
E
T
G
R
O
W
T
H
High
Low
BCG Matrix

23. • Important reason to visit
• Largest K-Mart in the world
Duty free
shopping
• Family home stay
• Comfort class
Hotels
• Low awareness
Transport
Activities
Tourism: Guam
•Aviation- Regular
•Fewer Cruise Ships

24. Luxury Cruise
More water
Sports
Clean up of
public attraction
Road to Success:

26. BUSINESS DEVELOPMENT PLAN
Focus on Japanese visitors as they constitute approximately 80% of tourists
visiting Guam every year & 1/3rd of it returning next year.
Increase in activities, events and things to do in Guam.
Promote the island as an advantage and make it as an investment
opportunity/case for other countries.
Focus & increase Transport service to Guam by collaborating with travel
agencies.
Increase in marketing activities showcasing the major attractions of GUAM –
pleasant weather, beautiful scenery, natural environment, perfect diving
destination, duty-free shopping and largest k-mart in the world.

27. Gaum Visitors per year Gaum Occupancy Rate
(1988-2006)

29. Focus on tourism: (Assets of Gaum)
War heritge
Man made attractions
Entertainment/activities
Natural attractions
Cultural attractions
Pleasant weather
Exotic beach resorts

30. Reasons for decreased Tourism
 Restricted marketing
 Low budget
 Less transport facilities
 Defence intervention
 Varied global and destination image opinions
 Signage issue
 Cost of consumables
 Fear in the local communities
 Japanese centric services

31. Solutions to the problems
 Increasing global connectivity
 Improving local transport
 Increasing marketing budget
 Inviting big players to create
 Firm decision making body
 English as the signage
 Reducing intervention
 Global awareness programs
 Increasing travel agencies base and contacts
 Target globe not just few nations
 Adopt the modern technology for man made attractions.

33. PLC of Tourism Industry of Gaum
 For GVB, rapid growth period is over
 From 1967 to 1993, GVB was in growing stage as the number of
visitors were increasing starting from 6,600 and reaching to 784,018
 The industry reached its highest performance peak in 1997 when
number of visitors were 1,381,513 in its maturing stage

34.  From 2005-2008, their occupancy and prices were falling and sales were
declining
 Total visitors went from 1,223,290 in 2007 to 1,179,246 in 2008, a drop
of 3.6%
 Gaum’s tourism industry is currently in its maturity stage after a period of
rapid growth, but they have excellent growth potential because of the
size of the market, size of their target markets and the untapped markets
they could penetrate.
 Developed and industrialised countries would be the best targets for
GVB because the consumers are more interested in international travels,
different cultures and educational travel.
 These countries have a high percentage of people who have traveled
internationally, and their level of discretionary income are more in-line
with GVB’s target audience.