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PAGE ONE :: WORLD NEWS :: INDUSTRY

Tourism prospects bleak on Guam

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HAGATNA, Guam (30 June 2003) -- Guam may see fewer than a million visitor arrivals by the end of the year, tourism officials said at the Guam Visitors Bureau membership meeting yesterday.

Tourism arrival figures show that about 329,000 visitors arrived on island through the first five months of 2003, or an average of about 66,000 visitors a month. At that rate, the island could see fewer than 800,000 visitors this year. GVB board Chairman David Tydingco said the island has not seen tourist arrivals dip below one million since 1994.

GVB General Manager Tony Lamorena said he projects tourist arrivals, including scuba diving travelers, to increase from the current rates in the second half of the year, but the visitors bureau is still projecting to end the year with fewer than a million visitors.

Why is that important? According to Lamorena, each visitor who vacations here spends about $600 at local businesses.

Since January, the island has averaged about 74 percent fewer visitors than it had in the same period during 2002, according to GVB figures. That would be about $69,872,400 less than what was spent on Guam by the 445,788 visitors who arrived in 2002.

Tourism officials are hopeful that with an increase in military presence and the marketing of Guam as a SARS-free location, the tourist arrival numbers could increase. Gov. Felix Camacho yesterday presented a bill that would provide the visitors bureau with more than $6 million to market Guam.

A combination of factors -- typhoons, fear of severe acute respiratory syndrome, backlash from the recent Gulf War and the continued Japanese economic recession -- has severely affected Guam's tourism numbers in the first half of 2003.

In the peak travel months of July, August and September, the island typically pulls in roughly 90,000 to 100,000 visitors a month. This year the visitors bureau is projecting about 70,000 visitors a month, Lamorena said.

Many tourism-based industries have felt the sting of the decreased visitor arrivals.

"It has really affected our business. Times are hard," said John Acfalle, operator of Tumon Sports Club next to Sails Restaurant.

 

"Everybody has really been hurting since 9/11. These days we make about 10 percent of what we used to. ... We've had to cut back on hours to where some days we close by 2:30 p.m. It's hard; these tourists that come here don't have the money like they used to but with business comes struggle, and it's a struggle especially now."

Marketing Guam

Tourism officials have said the visitors bureau has the marketing strategies in place, but needs the money to further promote Guam.

The bureau was appropriated more than $14 million for the current fiscal year but so far has received only about $2.1 million, Lamorena said.

During yesterday's meeting, Camacho, the guest speaker, said the Guam Economic Development and Commerce Authority has identified $6.8 million in interest that the Tumon Redevelopment Project bond earned while it waited to be used.

Camacho's bill, which he presented to tourism committee Chairman Sen. John Quinata, D-Talofofo, transfers the interest to pay for GVB's marketing efforts.

Lamorena said, should the bill become law, the visitors bureau would use the majority of the money to launch a marketing campaign in the winter months to carry over into the next year.

Dennis Rosario, a supervisor with R & C Tours Guam, said the tour company has had to make cuts to staff and salaries, but is optimistic that the latter half of the year will improve.

"The numbers don't look good, but we're starting to see an increase from what it was the beginning of the year," said Rosario, 41.

"We're optimistic about tourism and that so long as something else doesn't happen it will rebound. Otherwise, there is no drive to keep working."

SOURCE - PDN

 

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