The tourism industry has a significant economic impact on Guam, with direct visitor spending reaching $1.5 billion in 2019 and generating income of $617 million. This spending directly supported nearly 21,100 jobs and accounted for roughly 60% of the island’s total revenue. The industry’s multiplier effect is evident, as every dollar spent by a tourist is estimated to generate an additional $1.50 to $2.00 in economic activity throughout Guam.
Total Economic Impact
In 2021, the direct travel demand in Guam of $128 million generated a total economic impact (total business sales) of $306 million on the island, sustaining 12,425 jobs and generating $57 million in territory tax revenues. The industry’s total economic impacts include indirect and induced impacts, reflecting the spending of tourism-supported businesses to support their operations and the spending of worker wages in the economy.
Revenue and Tax Contributions
Tourism is the primary driver of Guam’s economy, contributing to roughly 60% of its total revenue. In 2016, visitor-associated activities contributed $260 million in taxes, supporting essential public services like education, healthcare, and infrastructure. The industry’s significant tax contributions play a crucial role in supporting the government and public services.
Challenges and Opportunities
While Guam’s tourism industry is vulnerable to external factors like global economic downturns and travel disruptions, the island’s natural beauty, cultural heritage, and proximity to Asia offer potential for further growth through diversification, sustainable practices, and enhanced marketing efforts. By addressing these challenges and leveraging its unique strengths, Guam can continue to benefit from the economic impact of tourism and foster sustainable development. In conclusion, the economic impact of tourism in Guam is substantial, with the industry playing a vital role in driving the island’s economy, generating employment, and contributing to tax revenues. By recognizing the industry’s significance and addressing its challenges, Guam can continue to harness the potential of tourism for economic growth and diversification.
