Retooling For Success
Prior to the onset of the COVID-19 pandemic, many of Guam’s key economic indicators were either remaining steady or trending upward. Unfortunately, the worldwide impact of COVID-19 has negated any predictions or plans for Guam’s future economic growth. The challenges posed by COVID-19 presents a critical time for continued economic prosperity for Guam and its people.
Big challenges require bold action. In order to retool Guam for a robust economic future, the government of Guam, through the efforts of the Guam Economic Development Authority, has launched an aggressive and expansive plan to reinvigorate Guam’s economy. This plan focuses on the restoration of existing industries while simultaneously promoting the establishment of new and emerging industries.
The information below provides some information on Guam’s economic strengths. Guam is open for business, and we welcome your interest.
Over the last 20 years, Guam’s economy grew steadily by an average of 1.33% annually. The most recent report from the U.S. Bureau of Economic Analysis showed a growth in GDP of 2.0% in 2019.
Guam’s top economic contributors are US federal spending and tourism. As a territory of the United States, federal spending has seen exponential growth over the recent years and it is expected to continue until the end of the decade.
Tourism is Guam’s largest industry accounting for the largest employment and revenue base. Visitor arrivals has increased year over year with 2016, 2017, 2018 each reaching over 1.5 million arrivals. Visitor arrivals for 2019 hit a record high of over 1.6 million arrivals.
Guam is making investments into diversifying its economic portfolio, in areas such as pharmaceutical manufacturing, telecommunications, agriculture and aquaculture. Guam is also attracting companies in Asia looking to expand into the United States. With infrastructure upgrades and a growing economy, the time to invest in Guam is now.
Located in the North Pacific Ocean, Guam is “America in Asia”, offering a strategic advantage and an immense opportunity for Asian companies to expand into the United States. With an average flight time between 3 to 5 hours to major Asian metropolitan city centers, Guam offers the convenience of conducting business on Asia’s time, while being afforded all legal protections under U.S. law and a business friendly tax structure.
Guam’s legal and judiciary system is supported and protected by the United States. All proceedings are in English, and based on the American common law legal system and US standards of integrity. The terms used in court documents and settlement agreements would be recognizable by any other U.S. court.
Guam residents and businesses pay a “mirrored” U.S. income tax in which the U.S. Internal Revenue Service’s code of laws is applicable. The Guam Department of Revenue and Taxation administers all taxes in Guam. Corporations in Guam only file one income tax return; there is no federal tax.
Ports of Entry
The AB Won Pat Guam International Airport supports both domestic and international air services for more than 3.8 million passengers each year. With direct flights to major cities such as Tokyo, Nagoya, and Osaka in Japan; Seoul and Busan in South Korea; Manila, Philippines; Taipei, Taiwan, and Honolulu, Hawaii, Guam is accessible to major business centers in Asia.The Airport features a 12,000 linear foot runway, which allows for transpacific long haul flights to and from Guam.
The Jose D. Leon Guerrero Commercial Port is the largest U.S. deep water port in the Western Pacific. The port is equipped to handle a diverse set of needs, such as containerized, break bulk, dry bulk, fuel, oil tankers, fish, tourist related activities, as well as passenger liner traffic. It is equipped with four berths with 2,700 linear feet of wharf space alongside dredged depths of 28 feet to 37 feet. Each berth can service container vessels with a maximum width of 100 feet. Since 2017, the Port has handled over 1 million revenue tons annually.
Businesses in Guam enjoy the same advanced communications technology and high speed internet access found in major metropolitan cities throughout Asia and the United States. As a hub for 12 undersea fiber optic cables and host of some of the world’s largest communications providers, the island is a key connection and communications gateway between Asia and America.
This provides the island with high speed broadband internet access capable of transferring large amounts of data anywhere in the world instantly. With the addition of 4G and the recent growth of 5G broadband cellular network technologies, Guam provides the necessary telecommunications services to meet any business need.
Workforce & Education
Guam possesses a highly trained workforce and maintains a robust public education system rooted in development of productive citizens. Guam’s educational institutions are dedicated to providing quality education by offering training and education services to local residents as well as residents within the region. Guam also has numerous apprenticeship training programs that combines on-the-job training provided by employers with trade-related classroom instruction.
Quality of Life
Guam is a “Tropical Paradise” featuring gleaming white sand beaches, a plethora of outdoor recreational activities, historical and cultural landmarks, world class shopping, cosmopolitan dining and active nightlife. Steeped in history that goes back for thousands of years, Guam has a rich cultural heritage. Today, Guam is a truly cosmopolitan community with a unique culture, with American, Filipino, Japanese, Korean, Chinese and Micronesian residents all contributing to our vibrant community.
However, Guam is more than an idyllic tourist destination. It is also a wonderful place to start a business and raise a family. With a comprehensive education system, modern healthcare services, the stability of United States and a dynamic blend of pacific, Asian and American cultures, Guam has a great deal to offer.
590 S. Marine Corps Dr.
ITC Building, Suite 511
Tamuning, GU 96913
Phone: 671-647-4332 • Fax: 671-649-4146
Monday – Friday, 8:00 am – 5:00 pm except Government Holidays