Guam’s tourism industry has seen significant growth since the early 1970s, when the island welcomed 75,000 visitors, with 85% coming from Japan. However, Guam’s tourism was severely impacted by the COVID-19 pandemic, and the recovery has been slow. Some believe that Guam may never return to pre-pandemic levels, which were already less than half of the 1971 numbers.

The idea of paying airlines to allocate more seats to Guam from key visitor markets has caused controversy. While this is a common practice in the tourism industry, the focus should not solely be on increasing seat availability. Instead, the fundamental issue that needs to be addressed is the identity of Guam’s tourism industry.

In the early days, Guam’s tourism revolved around short, three to four day trips focused on sun, sand, and shopping. Tour operators in Japan tightly controlled the movements and activities of visitors, with stops at stores for tax-free shopping. This pay-to-play system also extended to retailers bidding for tour companies to bring their passengers to their stores. However, as post-COVID trends have shown, this sun-sand-shopping model may no longer be enough to attract tourists.

Guam’s identity as a sun-sand-shopping destination is not unique, and the island is not the most affordable option for Korean and Japanese tourists. This lack of competitiveness has resulted in a decline in tourist numbers. This issue has been raised for over 20 years, with little action taken to diversify and enhance the overall tourist experience.

The impact of this issue goes beyond tourism. Guam has long talked about developing a “third engine” to its economy, in addition to the military and tourism. However, as the tourism engine sputters and federal spending keeps the island afloat, the question arises of what will happen when federal spending decreases. It is clear that leadership is needed to address this issue and steer Guam towards a successful future.

This issue also has implications for employment on the island. As many young professionals leave Guam due to poor compensation and a lack of opportunities, the tourism industry also struggles to find the talent it needs.

Incentivizing airlines can only go so far in boosting tourism. To truly revive Guam’s tourism industry and stabilize the economy, the island must become a desirable destination for tourists. The saying goes, “the best time to plant a tree was 20 years ago, the second best time is now. ” The same can be said for Guam’s tourism industry. Action must be taken now to diversify and enhance the tourist experience, or the island may face an uncertain future.