Hafa Adai Members,
The tourism industry has seen arrivals grow to 1.5 million with on-island spending at an average of $1,150 per person (as compared to $934 in 2007). Hotel Occupancy Tax is at $37 million for the year and Gross Receipts Tax at $51 million. In a recent 2016 exit survey, food and beverage spending was at $42.86 in a hotel and $92.26 in restaurant establishments outside a hotel. For hoteliers, Rev-Par grew to $122.70 with an average room rate of $165 at 77% occupancy.
With record arrivals and an increase in seat capacity, Guam’s tourism industry continues to make great strides to diversify its core markets by working with key stakeholders such as airline carriers, general sales agents and wholesale companies, hotels, retailers, and online travel services to increase arrivals. Although arrivals have increased and occupancy tax continues to increase, Guam has been challenged with sustainability issues with Japan (e.g. outbound travel, trends, economy, and yen) as well as China and Russia (e.g. chartered flights, routes, visa waiver). It is important to continue building on the successes from the prior years and opening new paths, but be mindful of the limitations and challenges that come with expansion and diversification.
GHRA will continue to focus on the workforce development plan, which includes providing training, acquiring funding, introducing higher standards of service, developing and sustaining a skilled workforce, and offering new services. GHRA will also continue to serve an important role in compliance and regulatory affairs, which includes working with the executive and legislative branches of the Government of Guam and its agencies on issues that have an impact on the industry and businesses.
Thank you for your membership and confidence in GHRA! With your support, we will work hard to ensure continued success for the stability and growth in the tourism industry. Your membership is important and we want you to work closely with you!
Mary P. Rhodes
Guam Hotel & Restaurant Association