HAGATNA, Guam (26 Oct 2001) -- More layoffs loom over Guam's hotels in the face of Japanese tourist arrivals expected to drop by 60 percent through at least next month, a tourism industry official said yesterday. The Guam Hotel and Restaurant Association found out Thursday that the Japan Guam Travel Association expects a 60-percent reduction in Japanese tourist arrivals. JGTA is made up of travel wholesalers and tour operators that account for about 90 percent of visitor traffic to the island. "In view of the latest JGTA figures, (hotels) are now more seriously looking at laying off people and that's very unfortunate," Manfred Pieper, chairman of the Guam Hotel and Restaurant Association, said. Before the latest JGTA estimate, the tourism industry had expected just a 30 percent drop in tourist arrivals for the rest of the year. At the time, only two or three hotels had implemented minor layoffs, which the association didn't tally because the numbers, Pieper said, "were nothing to be overly concerned about." Pieper said many hotels were determined to maintain their employee numbers, not just because it's the humane thing to do, but also since workers who are let go may leave the island and take with them the skills that will be needed when the industry recovers. Now the mindset to keep work force numbers intact is changing. "There's no doubt in my mind that people will start laying off," Pieper said. With a 60-percent drop in tourist arrivals, average hotel occupancy will drop to 30-35 percent on average, and hotels operating at such numbers will be in a struggle to survive, Pieper said. If the JGTA forecast holds true, the hotel industry will see losses ripple through the first few months of next year, Pieper said. "We are possibly talking about a window of four to six months as of today and that's a long time to survive." What's being done Pieper's organization is participating in industry wide efforts to stem the decline in tourist arrivals. The Guam Visitors Bureau is leading such efforts and also is supported by others, including JGTA, the Guam Chamber of Commerce and Sen. Felix Camacho, chairman of the Guam Legislature's tourism and economic development committee. The Visitors Bureau reported yesterday that $1.4 million was spent in TV and print publicity expenses in Japan earlier this month when a Guam tourism delegation traveled to eight Japanese cities. The Visitors Bureau had stated before the trip that $1.2 million would be spent. A Visitors Bureau press release said the goals of the spending and the trip were: - To stop further cancellations of Japanese travels to Guam;
- To support travel agents' sales pitches for Guam; and
- To emphasize to Japanese consumers that Guam remains a safe destination.
| | The Visitors Bureau and business members of the industry also are preparing what they call an "added value" program for tourists who visit the island. Dozens of Guam businesses have pledged to participate in the program that involves giving additional items or providing extra services -- for free -- to tourists who spend their dollars at participating business establishments. GVB Chairman Tony Sgro said although it will take time for such efforts to bear fruit, at least GVB and other industry players are taking action rather than doing nothing. Camacho said he's introduced legislation that would allow the visitors bureau to shift funds if it needs to spend more money for marketing in Japan. Businesses are doing their share as well. Continental Airlines, for example, is sponsoring familiarization trips to Guam for Japanese travel agents and Japanese media, said Walter Dias, Continental Airlines staff vice president of sales and marketing. Continental also is maintaining flights between Guam and eight cities in Japan, Dias said. What Guam can do Pieper suggested that Guam declare itself an economic disaster area so that the island can try to request federal financial assistance because the government of Guam is financially strapped. "I believe the only way out is, hopefully, look at federal aid," he said. "What is for us a lifesaver, say, $5 million or $10 million or whatever it may be, is a drop in the ocean for Washington." For Guam, such amounts, Pieper said, "would go a very, very long way." Guam Visitors Bureau board member Monte Mesa said there are things Guam residents can do to help the industry. For example, island residents can e-mail people they know in Japan and other tourist markets to let them know Guam is a safe place for vacations. Island residents who have Web sites can promote Guam as well, Mesa said. Another board member, Bert Unpingco, encouraged island residents to wave to tourists, plant flowering plants and clean up their yards. It takes efforts from everyone in the community for Guam's tourism industry to recover, Mesa said. SOURCE - PINA |
