INTRODUCTION

Hafa adai and aloha!

It gives me great pleasure to be here on Maui and to participate in this forum organized by the Maui Pacific Center. Although I was invited here to share my thoughts about the Guam Hotel & Restaurant Association and its role in developing Guam's economy, I am here, more importantly, to listen and learn from the participants of this conference as I am sure, we all share similar opportunities and challenges.

In any event, I hope you will enjoy a little tour and taste of Guam during my presentation. As part of my presentation, I would like to share with you:

A LITTLE BIT ON GUAM

It is a melting pot and blend of cultures: Filipino, Korean, Chinese, Japanese, Indian, Chamaolee's, Palauan, Chuukeese, Yapese, Marshalese, Pohnpeian. We are the gateway to Micronesia, serving as a hub for passenger traffic and a mini load center for cargo.

For passenger traffic coming from Asia, we meet the three rules of successfully selling and valuing real estate – location, location, and location. Strengthening our position in the fact that we also proudly fly the American flag and are the doorstep for Asia to America, and America to Asia.

Average Room Rates

We have welcomed over one million visitors since 1994, with 1997 being the peak year at 1.381 million.

I hope that Guam can achieve 1.8 million seats from the various markets. Our largest carrier in terms of capacity is Continental Airlines, followed by Japan Airlines, Northwest Airlines, Al Nippon Airways, Asiana Airlines. Charter services are from China Air and Eva Air. An aviation policy task force was formed specifically to address increasing seat capacity from various gateways.

In order for Guam's economy to get back on track, we need a minimum of 1.8 million visitors annually to sustain an average occupancy of 75%. This will allow employment levels to rise, (unemployment rate is 15% according to latest survey), allow hotel room rates to stabilize, and increase tax collections related to tourism.

Opportunities come in different forms for the diversity of membership in GHRA. Value is measured differently for members of the organization. Government entities see it as a way that allows a direct line of communication for a large group of industry personnel for the purposes of sharing information. For private institutions, all the services to grow their business are available under one roof. For trade associations, it provides an opportunity for unified positions on issues, and promotes regional cooperation on matters of mutual concern.

Allied industry are all for-profit businesses who are not hotels and restaurants: food suppliers, travel agents, optional tours, attorneys, and pest control companies.

One general manager put it aptly, "A hotel has almost every job occupation, and therefore needs what a city requires to operate, with the exception of a mortuary." Knowing our industry, there probably is an opportunity that is being looked at that would include mortuary services.

Our organizational chart has as its focal point, the guest. The guests we serve are our local people and our off-island visitors. We believe that in order for tourism to be successful on Guam it has to be first, and foremost, good for our local community.

Although many, I would like to focus on the four major factors that drive the value of our organization for the membership:

• Political value

  Working with Guam's political infrastructure and bureaucracy is critical to the organization's success.

  Partnership is the key for developing a sense of trust and integrity in the relationship.

  The bottom line is always, "Is it fair for all concerned, and ultimately, is it good for the community?"

• Business Development

  GHRA serves as the conduit for business growth and development for our membership.

• Professional Development

  Hospitality Institute–Guam's version of a hotel/hospitality school. The classroom is the workplace and the industry determines the curriculum necessary to support their needs.

• Community Interaction

  Serving the needs of our community ultimately provides the bridge that many times divides the industry and our local people.

Ultimately, the four opportunities we provide for our members meet the objectives established in our articles and by-laws and allow our organization to foster our growth and development.

Doing more with less – GHRA operates on a budget of just under half a million dollars to meet our mission. Our members call upon us to deal with almost everything imaginable: no water; no power; health certificates; dog traps for stray dogs; it is 4:45 p.m. and someone needs a sanitary permit to open at 5:00 p.m.

Divergent needs like hotels and travel agents, although striving for the same ends, don’t necessarily agree on the means to get there. Doing business in the islands and in Asia is quite different from doing business in America or Europe. A nod up and down typically means "Yes, I agree" in western cultural, but a nod up and down may mean, "I am pacifying your conversation with me, but I do not necessarily agree."

Solutions come in all shapes and forms, and the primary advantage is that we have an international perspective on how we can effectively deal with any challenge.

Si yu'os ma'ase, me sulang, mahalo... thank you for taking the time to listen.