Guam

The outlook for Guam’s economy is bright. The primary reason is a recently announced US military buildup on the island, as part of a global redistribution of US forces throughout the world. There are three sectors directly causing growth in Guam’s economy; the US military, tourism from Japan & other areas in Asia and real estate and construction.

US Military
The military sector has taken the lead among Guam’s major growth engines. Their presence is expected to increase greatly due to a relocation of forces currently stationed in Okinawa, to be completed by 2014. Additionally, other U.S. troops may be moved from South Korea. In total, as many as 40,000 residents could be added to the total population of Guam which would be a 30 percent increase in total population. The projected cost of relocation is $15 Billion. Much of this will be spent to develop infrastructure on Guam to support the increase in population.

Tourism
Guam’s tourism industry attract over 1.2 million visitors every year. An estimated 75% of Guam’s visitors come from Japan, with about 9% from South Korea and 5% from China and Taiwan. Guam’s hotels include international chains such as Hilton, Marriott, Westin, Hyatt, Outrigger, Okura, Nikko and Sheraton. International retailers include Macy’s, Duty Free Shoppers, Chanel, Gucci, Benetton, Esprit, and K-Mart. Some prominent restaurant chains include Planet Hollywood, Hard Rock Café, Sam Choy’s, Outback Steakhouse, Lonestar Steakhouse, McDonald’s, Tony Roma’s, Pizza Hut, Burger King, Wendy’s, etc.
The retail sector is the third largest employment sector which is primarily caused by local residents, base residents and the influence of visitor spending and dependency on imported goods. The shopping facilities in the region boast the highest per square foot sales of like stores in the mainland U.S. and the tourist oriented retail performs extraordinarily well.

Real Estate and Construction
Guam’s real estate prices are rising in anticipation of the military buildup. Offshore demand is also fueling a significant part of this. The appreciation of real estate, combined with the expanding military plans, is stimulating renewed interest in development and new construction, particularly in the hotel sector, with several hotels recently purchased and renovated.