Guam Film Office Bill Stirs Up Controversy

MONDAY, 10 OCTOBER 2011 01:15 BY JANELA BUHAIN | VARIETY NEWS STAFF

* Legislation withdrawn and reintroduced

Senator Tina Muña-Barnes introduced Bill 324 to establish a Guam Film Office for promoting Guam as a film location and to regulate foreign companies wishing to film on Guam. Variety file photo

A DELUGE of disapproving comments against the Guam Film Office bill went viral over the weekend, because of provisions which some members of the industry say could jeopardize the local film industry on Guam.

This has prompted the bill’s author to withdraw the legislation and reintroduce it with strengthened language.

Sponsored by Senator Tina Muña-Barnes, Bill 324 was introduced last Monday and, if enacted into law, will establish a Guam Film Office to promote Guam as a film location and regulate foreign companies wishing to film on Guam.

But, according to a website dedicated to “stopping” Bill 324, stopbill324.wordpress.com, the bill “takes away” local videographers and photographers’ “right to work.”

The website/blog was put together by a “Filipino-Chamorro videographer and photographer.”

“I consider myself an Independent, but I seem to lean more Democratic as of late,” the website creator wrote.

Item 1 on the website states Bill 324 requires locals to obtain permits to photograph, film or draw at publicly owned areas. Then, highlighted in red, it states, “Locals are not exempt according to Item E on page 8 of Bill 324.”

That particular item reads, “Local Production Companies. For the purposes of this act, companies licensed by the Department of Revenue and Taxation, to do business on Guam, are exempt from paying permit fees” if the company is locally incorporated – with Guam residents as owners – and maintains its headquarters on Guam.

The website claims that although the local production company will not have to pay fees, it will still be required to obtain a permit to do business on Guam.

Confusion

But according to Barnes’ office, the confusion lies in the previous page, under item “50407 Exemptions,” which reads, “The provisions of this chapter shall not apply to or affect.”

Therefore, under the bill, local production companies are, in fact, exempt from the Guam Film Office Chapter.

“I understand that some very well-meaning people interpret the law differently and that is why I have withdrawn Bill 324 and introduced a bill that makes the ‘local production companies exemption’ language even stronger,” said Barnes.

Under the new bill, which has been transmitted to the clerk of the Legislature and is awaiting approval, a new provision will be added immediately after the “exemptions” section of the bill, titled “50408. Local Production Companies Exempt,” further strengthening the language of the bill.

“Their issue is they don’t want to be affected by the statute. Under that provision, they won’t be. But I want to make clear that they originally weren’t. It’s not like we’re changing it because they were, they were never affected. Now we’re just making it clearer and stronger,” stated an employee from Barnes’ office, adding Saipan and Hawaii have their own respective film offices to regulate filming.

Barnes is inviting film industry stakeholders to meet with her to discuss the bill further. She also said she had initially introduced the idea as draft legislation in June, seeking community members’ input.

Concept

The concept, Barnes said, was brought to her attention by David Duenas of the Guam International Media Coordinators Association.

Barnes additionally stated: “Without a Guam Film Office, we can’t protect the Guam brand as well as we should or regulate the way international film companies use our island. That is why I will continue to work with the public to get this done the right way.”

Earlier this month, local filmmakers Don and Kel Muna organized the first ever Guam International Film Festival.

The event was a success and was held at the Micronesia Mall Stadium Theaters, featuring over 100 submissions from both local and international filmmakers.

According to media reports, GIFF drew thousands of people to the event.

Mangilao JGPO Meeting

JGPO updates residents on status of military buildup
Thursday, 15 January 2009
by Zita Y. Taitano
Marianas Variety News Staff

RESIDENTS who live in the central part of Guam got a chance to voice their concerns on the impending military buildup last night at the Mangilao Senior Citizens Center.

John Jackson, director of the Joint Guam Program Office, provided an update on the plans to move 8,000 Marines in addition to their families and other military personnel from Okinawa to Guam by 2014.

"This is program is not just a Marine Corps program but it's a program that involves all the services and all of the services are looking at adding additional people, service members and dependents, to the numbers that are already on the island," Jackson said.

He said there are areas that are already being assessed as possible sites for the transfer such as firing ranges in a section of NCTAMS.

He said the military wanted to look at those places with a clean slate and what they learned is that areas on Andersen Air Force Base are being used by the Air Force whereas down south, projects have already begun for the Navy. Other obstacles they came across included the wildlife refuge.

"This planning has been continuing more and more over the past year and is getting more and more detailed," he said. "And as we begin to get more and more details, that's where we start getting to points where decisions have to be made and some of those decisions will be made possible in the 60 days or so. Once decisions are made in the form of a draft environmental impact statement, for instance, then the public, by law, will have 110 days to come up with questions and we would answer those questions."

Jackson also said that the military is not planning within a vacuum, so to speak.

"We're planning with the government of Guam," he said, adding that they are conducting land surveys with the assistance and permission of the Chamorro Land trust Commission.

"The end result of all of this is that we anticipate the citizens of Guam being happy. We're not looking at condemning land. That was something that was done in the past. We're not looking at doing that. And if we should lease lands, then that's a steady income of money for the CLTC that will go into the pockets of the people of Guam."

Jackson also addressed the matter of the preliminary draft of the EIS, which is expected to be released to the public around April or May, which is also when the 110 days of questions will go into effect. The final draft of the EIS should be done by January of 2010.

Raceway
Meanwhile, Henry Simpson, president of the Guam Raceway Federation, went up to a map of the proposed area on the east side of Guam and pointed out to the site the raceway track is located.

Simpson asked Jackson that if the military were to lease the properties, how would it replace the opportunities available to the race track and the plans to build a municipal airport based on a study done in 1989?

Jackson informed him that they haven't made any decisions as of yet because they are still looking at properties.

But he did say that the military has already looked at the impact of a firing range if it is situated in Andy South, which is near the raceway park and the municipal airport project.

"We have to look at what is not only on the ground today but may also be planned on the ground in the future and we look at that. We also have to look at what we're planning on DOD property such as Andy South," Jackson said. "We looked at some of the federal rules and we discovered there's an FAA rule that we cannot have a firing range within three nautical miles of a municipal airport," he added.

Concerns about the military buildup on Guam were also brought forth to Jackson by Trini Torres, Maga Haga of the Taotaomona Native Rights Group.

Torres told Jackson there is no need for the Marines because there is already enough military, adding that she is not happy with the thought of leasing Chamorro land.

"This island is so small and we keep bringing in so many people. This place is for a Chamorro person. Every outsider that comes to our island displaces a Chamorro," she lamented.

Meanwhile, Eric Untalan of Barrigada held a different perspective from Torres, assuring Jackson that there are others like himself who share a different point of view. Untalan did want to know, however, the chronology of hurdles that JGPO has to clear.

Jackson said the first hurdle is the financing, the program being a $10 billion project that has 60 percent being covered by the Japanese Diet and the remaining amount coming from the U.S. government.

The second hurdle, he said, is that the two governments have two different fiscal years. Japan starts on April 1 while the U.S. is on Oct. 1. Jackson did point out that the Japanese Diet is currently debating the first installment payment of about $335 million.

"They are debating that as we speak. We have monthly discussions with the government of Japan and all indications are that the Japanese Diet will approve that $335 million," he said, with the money going to coffers for next year's construction.

The final hurdle is the EIS document when it's officially finalized.

"And when that's finalized, that also has to go through the different regulators such as Fish and Wildlife, NOAA, all the other environmental agencies here on Guam and the federal level. When those pieces and parts all come together, the draft will be finalized and signed," he said.

Then there's the master plan that will contain where utilities will go and where roads and buildings will be built.

"Those are the kind of hurdles we're looking at prior to 2010," he said.

The JGPO meetings will continue on Jan. 20 at the Yigo Gymnasium.

On the next day, Jan. 21, the meeting is at the Dededo Senior Citizen Center, and on Jan. 22 at the Agat Community Center. All the meetings start from 6:30 p.m. to 8:30 p.m.

Guam Tourist Numbers Fall in 2008

Tourist numbers fall in 2008: GVB blames fuel prices, market crash
By Brett Kelman
Pacific Daily News
bmkelman@guampdn.com
January 7, 2009

Edwin Cruz believes that the familiar faces who used to visit him in Tumon during the holidays may have belonged to some of the 44,044 tourists who decided not to fly to Guam last fiscal year.

Cruz, 50, owns two beachside businesses that rent snorkels, fins, kayaks and paddleboats outside of major hotels on the sandy strip of Tumon Bay. Rental gear from Isa Aqua Sports and Isa Sports Club sprinkle the coast with pink, orange, yellow and white.

Every December -- during the busy season -- Cruz would recognize the same Japanese and Korean families who returned to Guam each winter to relax on the beach, play in the shallows and put money in his pockets.

This December, they didn't show up. All told, lots of tourists didn't show up, he said.

"This same time last year, it would have been busier. Absolutely busier, ... I wouldn't have time to talk right now." Cruz said, laughing.

Yesterday, Guam Visitors Bureau President Gerry Perez said that the high cost of fuel and the global market crash kept tourists, like many of Cruz's customers, away in 2008. Many airlines in Asia added fuel surcharges to their ticket prices, driving travel costs up while the economy was down.

According to the Guam Visitors Bureau fiscal 2008 annual report presented at the bureau's quarterly meeting yesterday, tourist arrivals dropped by about 3.6 percent last year. Tourism numbers were lagging only slightly behind for most of the year, but when the economy went sour during the fall, arrivals plummeted by 14 percent.

According to the report, 1,223,290 tourists arrived in fiscal 2007. In fiscal 2008, only 1,179,246 arrived. Since the average Japanese tourist spends about $635 during a stay on Guam, the local economy missed out on about $28 million of local spending.

Arrivals from Japan and Korea, Guam's largest markets, both dropped more than 5 percent, the report stated.

Cruz said he could feel the difference. If it were January of 2007, he wouldn't have a moment of peace. Ten tourists would be waiting to rent equipment the moment his businesses opened each morning.

Like owners of many struggling businesses that rely on tourists, Cruz said he started cutting the hours of his 11 employees last month to lessen his losses. He fights to keep morale high, but his workers have started dropping "hints" that their lives are rewritten by smaller paychecks, he said.

"This is not the end of the hardship, but we've got to just be prepared, you know? Start adjusting our lifestyles," he said. "Right now it's a day-by-day thing. You cannot predict a slow economy and you cannot predict how deep your pocket is. You've got to look at doing everything possible to survive."

But Perez can predict that the light at the end of the tunnel is still a year away.

He said yesterday that although airline fuel surcharges were slowly disappearing and the Japanese yen had regained much of its value, tourism numbers may not improve until 2010.

"Because the Japan economy is in such dire straits, it's negating the benefits of a stronger yen and lower fuel surcharge environment. In the case of Korea, the Korean won has deteriorated about 26-30 percent in terms of its value, ... that means that Guam, in won terms, is a much more expensive destination," he said.

Solutions
Perez said the Guam Visitors Bureau hoped that four initiatives that will begin this year would "soften the blow."

"We believe that there are structural conditions in the market -- they are mega-trends -- we can't stop them. But we can at least tactically address some opportunities to lessen the impact," Perez said.

Perez said the initiatives were:

The "Visit Guam" campaign, which will attract tourists through the Internet and connect them with travel agents;

Weekly sales promotions in shopping malls and department stores in Japan;

A campaign to entice large groups of tourists, such as businesses that want to reward their employees; and

Advertising using renowned Japanese celebrities, including recently retired Pittsburgh Pirates pitcher Masumi Kuwata.

Tourism could receive a big boost with the approval of a China visa waiver for Guam and the Commonwealth of the Northern Mariana Islands.

GVB announced yesterday that a delegation from the U.S. Department of Homeland Security will visit Guam and the CNMI next week to explain new regulations for visitors to the island.

The new regulations, which are set to take effect in July, will outline specific requirements under which visitors from any country will be allowed into Guam and the CNMI, the release said, without giving details about what the new regulations entail.

"This is good news because it means we should be able to attract new markets, such as China, and the Philippines for that matter, so long as certain requirements are met," GVB Chairman Tydingco said in a news release yesterday.

A waiver would make it easier for Chinese tourists to visit Guam and the CNMI than anyplace else in the United States, where they still are required to obtain non-immigrant visas.

Cruz thought the solution was simpler -- if you keep prices low, tourists will come back, he said.

We Need a Fix To The Fix

ben's Pen
Tuesday, 11 November 2008 02:29
by Sen. Ben Pangelinan
Guam Variety News

Washington delegate: We need a fix to the fix

The military buildup has been held out as the salvation to the economic crises and financial challenges facing our community. The Department of Defense, as well as the Joint Guam Program Office, has touted the fact that the buildup will benefit local businesses both big and small. It appears that a recent decision in a federal appeals court may have placed a kink in the flow of contract dollars to Guam businesses.

Since 1986, the Congress in authorizing Department of Defense appropriations for contracts, set a goal of channeling 5 percent of contract money each year to firms owned and operated by minorities. This was directed in the appropriations because some lawmakers were not satisfied with the pace of the Pentagon in including smaller minority owned firms in defense contracts versus the awards to the Lockheed Martins and General Dynamics and others.

The appeals court ruling declared unconstitutional the 5 percent set aside of defense contract dollars for minority owned businesses based on the court's decision that there was not enough evidence the Pentagon discriminates against minority firms in awarding the contracts. The court ruled that Congress was deficient in its justification for the policy, lacking strong evidence and proof of discrimination by the Pentagon, and thus violated the equal protection clause. Using the strict scrutiny standard, the court opined that "Congress did not have a "strong basis in evidence" to find that DOD was a passive participant in the pervasive nationwide racial discrimination.

The program has benefited minority owned businesses to the tune of over $15 billion in contracts awarded to these businesses of the over $269 billion in contract awards that were issued last year. It is still in effect and is set to expire next year.

The case started in 1988 when a business owned by a white woman lost a contract to a Korean-American couple for computer services. The Air Force in this case gave the contract to the Korean-American couple even though their bid was higher at $5.75 million verses the white woman's Rothe Development Corporation's $5.57 price.

The initial ruling of a federal court in Texas sided with the Defense Department. Rothe Development appealed the decision. The lower court used six studies that ostensibly presented evidence of a discrimination pattern against minority owned businesses in public and private contracting.

Although this ruling I am sure will still be tied up in appeals for sometime, we need to develop a unified response to Washington and the Congress to press our case here on Guam. The Delegate must take the lead in crafting a legislative remedy based upon a studied analysis of the awards of defense contracts on Guam over the years. We need to solicit the assistance of the Small Business Administration, the Guam Contractors Association, the Chamber of Commerce and the University of Guam to attack the evidence as it relates to the practice here on Guam. The Governor must immediately request a grant from the Office of Economic Adjustment to fund the study necessary to present to the Congress showing the proof and evidence of the effect this will have on Guam-based businesses whether minority owned or not. The Guam story and its uniqueness must be documented and told to fix the fix and meet the strict scrutiny standard and constitutional test.

We must do so with all haste or again, Guam businesses will be left behind just like we were in the A76 process. If we do not, Guam firms and our people will be economically deep-sixed in this military buildup.

ben pangelinan is a Senator in the 29th Guam Legislature and a former Speaker now serving his seventh term in the Guam Legislature. E-mail comments or suggestions to senbenp@guam.net.

Local Products Launch Business

Local products launch business: Store features ifit, other Guam-specific items
By Stephanie Godlewski
Pacific Daily News
June 23, 2008

Tourists are almost always looking for locally made products, said John Castro.

He is the owner of Island Cutie Gift Shop, which specializes in local crafts.

"I worked in the tourism industry for 12 years, so I learned what they were looking for," he said.

However, Castro said tourists aren't the only ones looking for authenticity.

"Even people who live or used to live on Guam look for those special items made on Guam."

A year and a half ago, Castro decided to bring people what they're looking for and opened Island Cutie to showcase all the things Guam has to offer.

"I wanted to open up because I wanted to promote local items, like local carvings," he said. "I wanted to display local crafts, like those made from clam shells."

Uncle's carvings
Castro is no stranger to crafts, having seen his uncle, Robert Taitano, create intricate wood carvings from the ifit tree. Castro said he spoke to his uncle about being the exclusive distributor of Robert Taitano creations.

Taitano is well-known locally for his carvings -- ranging from tables to storyboards -- with government officials among his clientele. Today, Island Cutie is the only retail store that sells the master carver's products.

"When people come in, I like to tell them about the wood and the work that goes into the products," Castro said. "When people know its history, the merchandise has more value for them."

Carvings and crafts aren't the only things Island Cutie has to offer, however.

"We have a lot of stuff," Castro said. "We have stickers, T-shirts, coconut graters and handmade soaps.

"I have some really (affordable) items," he said. These range from small toys to souvenirs from $1.99 and up. Wooden tables cost around $2,000.

Local focus
He added that many of the products are made locally, with some produced by the company.

"The stickers, we make here. We hand-braid the shirts. The candles, we make ourselves. The soap, our mother-in-law makes," Castro said.

His girlfriend, and co-owner of Island Cutie, Jayna Park, also carves soaps.

"We even buy our coconut oil from the Adas in Inarajan," he added.

Castro said running a small business is no easy feat, as he encountered difficulty with merchandising and management when starting up.

A huge part of staying successful is the way the customer is treated, he said.

"You have to do customer service and the customer is always No. 1. They're the one giving you the revenue."

Castro said he treats the customers like family and shares stories of Guam's culture and heritage with them.

Something new
Even with the economic problems Guam is facing, Castro's business is doing well. The secret? Always looking for something new.

"I try not to concentrate on one item. I try and concentrate on a lot of items," Castro said. "I try to make it and bring it in. I try to visualize what people want. I see what customers want and try to get their opinion."

The variety of items brings in both locals and tourists, just as Castro planned.

Expansion plans
Recently, Castro started negotiations to open two shops at Andersen Air Force Base. He said a number of his customers are military personnel or visitors from the mainland. Because he already sells a good amount to the military base, he looks forward to what this opportunity could bring.

"It will be two stores -- one for candles and one for local carvings," Castro said.

He said the mall store won't suffer from the expansion, because he will continue to bring new items in.

"I'm expanding with carvings from Indonesia, carved glass tables," Castro said. "I've got a lot of unique stuff coming in."

Military Buildup a Boon and a Test

Posted: June 9, 2008
Military Buildup Seen as Boom, Test for Tiny Island of Guam
PBS Newshour

In the next six years, the population of the U.S. Territory of Guam is expected to explode by 25 percent as the American military redploys thousands of its forces from Japan to the tiny Pacific Ocean island. The more than $15 billion project is expected to fuel the economy, but also threatens to strain its infrastructure and threaten its tourism industry. Catherine Norton reports for the Online NewsHour.

CATHERINE NORTON: As the closest American region to many of Asia's international flash-points, the U.S. Territory of Guam has been for decades home to some of the country's most critical military installations.

The island has held that role since World War II when hundreds of U.S. Marines stormed the beaches, to take back from the Japanese government this strategically important piece of real estate.

Japanese rule over the island had been at times brutal and its liberation on July 21, 1944 at the hands of the United States military, is something most Chamorro people would be forever grateful.

With diplomatic challenges in North Korea and China, the importance of the Navy and Air Force presence on Guam has only grown. But, as that role grows, so does the need for the military to control some of most prime real estate on the 32-mile long island.

As the military importance of Guam has increased, it has run into the fast-growing economy of the island, leading to tension between the island's residents and the military. Guam's leaders, seeking to bolster the island's tourist trade, pushed for greater independence from U.S. control, and sought to gain back ownership of prime real-estate occupied by military forces.

Mike Ady, a veteran and Guam businessman, said this was a strategy that in many ways back-fired.

MIKE ADY: When you basically tell them "We don't need you. You are not a welcome partner in our community." And our government just said, "We are making so much money on the Japanese economy that we don't need you." Well, what are you going to do? The military is going to say well obviously they don't need us. So fine, they close Naval Air Station, they close the Ship Repair Facility, they downsized all the Navy and then what happened, in my opinion, is the Chamber of Commerce -- the Armed Forces Committee was developed at the point of time -- a lot of business men from Guam got on an airplane and flew to Yukuska, (Japan) to the see the Admiral there and said "Admiral, we're sorry. We want you. You're our friends, you're our companions. Please come back." On bended knee. And that, they started bringing in the (USS) Kitty Hawk and having them do port calls here and leave here and as you see building up and building up.

CATHERINE NORTON: With the island much more amenable to continued military presence and the U.S. Department of Defense reassessing how to deploy its forces, growth of the military bases on Guam seemed likely.

After months of research and closed-door meetings, the Department of Defense announced in 2006 it would relocate 8,000 U.S. Marines from Okinawa, Japan to Guam.

The 3rd Marine Expeditionary Force is anticipated to join 14,000 Military members already on Guam, and with them they are expected to bring 12,000 dependants. In addition, the other branches of the Armed Forces -- Navy, Air Force and Army -- are expected to increase its personnel on the island. Once settled, the total population is projected to rise to 40,000 Military members and their families, compared with the island's 170,000 inhabitants.

The move will bolster the island's tax base and fuel some parts of the economy. But some residents are worried about the impact the move will have on their island home.

Joey Duenas, who makes his living off the land buying and selling real estate, says it makes for uneasy neighbors.

JOEY DUENAS: There's the island of Guam and all of us who call it home and the military is like our neighbor, so it's like two neighbors and they are side by side like two houses and you kind of what to know what your neighbor is doing.

CATHERINE NORTON: Although many residents are skeptical at how open the military will be about its planning, the Defense Department has tapped Retired Marine Corps Major General David Bice to coordinate the massive operation. Working primarily from his Washington D.C. office, Bice's team on Guam is focused on working with the local population.

MAJOR GENERAL DAVID BICE: We're developing and identifying the construction projects that we expect to be started in 2010 both for the U.S. funding as well as for the Japanese direct cash funding as well. We are developing engineering studies, developing the project lists and the funding requirements for that. And then we will be presenting them through our normal budgetary process, both within the Department of Defense and it goes through the normal staffing and budgetary process and then it goes to the federal government.

CATHERINE NORTON: The project is huge, carrying a $15 billion price-tag that will be covered by the U.S. and Japanese government. Of those numbers, almost $6 billion will be new money spent on construction and direct investments, a figure that has many Guamanians believing they now have a world of economic and employment opportunities available to them.

Local entrepreneurs are leaving nothing to chance in their efforts to gain from this surge. Mike Ady, who owns and operates an office furniture and business systems company, says it is an opportunity, only if Guam businesses seize it.

MIKE ADY: My concern with these local businesses is they think that this is a lottery, that we won the lottery, it is not. The business is there, but they will not come to you, you have to go to them and if you do not have your ducks in a row and don't prepare yourself -- get your bond in, get your CCR registration, get your financial statements all in order -- the gun is going to go off and if you don't have all of these things ready, it is going to pass you right by.

CATHERINE NORTON: But no matter how much of the work is done by local businesses, some business people are sure the work will outpace the local resources. Cliff Guzman works for a local business that operates a multi-million dollar housing contract for Navy Guam.

CLIFF GUZMAN: Let's face it the fact of the matter is we have limited resources on Guam. So no matter how you cut that up, we are still going have limited resources, we're still going to have to depend on foreign workers to come in here or foreign companies bringing in their expertise. The key there is to join local business with some these other businesses from off-island so that some of those skill sets remain on Guam long after this buildup is over because a lot of the companies interested in the buildup are coming out here to support the building part or work for the planning part, but they are not here necessarily to run the operation once the buildings are built and the Marines are here.

CATHERINE NORTON: Making room for 20,000 new neighbors on a tiny island already with a population of 170,000 residents, will be an insurmountable task with huge implications. The Government of Guam is taking the lead to prepare areas outside of the military fences, to review the needs and to find the cash for improvements.

TONY LAMORENA: The reality is its not just going to be a military buildup, it will be a buildup on the civilian side as large or maybe a little smaller than the military buildup. With $15 billion being spent on the military installation and increasing military personnel and their families to 40,000, it is obvious there will be new businesses being established, new homes are going to be built and we are going to see an in-migration of -- we are anticipating 20,000 people including family members looking for work. So the impact on the local community is going to be just as great as it is going to be inside the base.

CATHERINE NORTON: Tony Lamorena oversees the Civilian Military Task Force -- the local business leaders spearheading buildup efforts on behalf of the community. Lamorena says they expect a corresponding buildup of off base structures, infrastructure, roadways and homes and possibly schools, much of that building will only happen once the Environmental Impact Statement, or EIS, is signed.

TONY LAMORENA: The military is looking at bringing in 15,000 construction workers. We're anticipating the civilian side will need 10,000 construction workers. We're seeing it now where new condominium and housing developments are now being proposed and are being heard by the Guam land use commission. And yet we are still two and a half years from the EIS being approved and 2 and a half years from the major construction taking place.

CATHERINE NORTON: The community understands their island home is an important Military stronghold in Asia, but many question the economic as well as environmental and social costs.

Already the military has said it will need additional land for firing ranges and surface weapons testing areas. In addition, a deep pier may be needed to accommodate another aircraft carrier in Guam's Apra Harbor. The EIS has said the construction will impact the island's marine life and coral, but to what extent and how it will be mitigated has yet to be analyzed and published.

Once complete and approved in 2009, a Final Master Plan is expected to follow in the early part of 2010.

Guam's economy is already starting to show signs of growth from the buildup. An economic report published by First Hawaiian Bank shows a big part of the recent improvement in the Guam economy can be traced to this anticipation, with the largest growth in direct military contracts. The Pentagon's Joint Guam Program Office projects total spending to amount to between $2.0 and $2.5 billion annually, up from the historic average of about $500 million.

But business leaders say this massive growth will likely tax an already straining infrastructure.

TONY LAMORENA: Public works is in the process now of developing a comprehensive master plan for improving our roadways. The port authority just completed their master plan which calls for $195 million to improve their infrastructure. Right now the military has stated that their going to be bringing in an average of about 74,023 containers during the construction phase and then a sustainable level of 50,000 thereafter. So we're also expecting on the civilian side doubling, possibly even tripling.

CATHERINE NORTON: It is a worry the military shares.

MAJOR GENERAL DAVID BICE: We're cognizant of the financial, economic challenges facing the government of Guam and the people of Guam and that gives us impetus in terms of the inter-agency taskforce to take a look at the role the federal government can be doing both in directly supporting Department of Defense -- you know this is not just pure DOD effort, but because DOD relies on other federal agencies either for the environment studies that were doing or indirectly through Department of Homeland Security, Department of Labor, Department of Justice -- all those activities that have an indirect support to Department of Defense.

But also too, we are looking at what role the Department, excuse me, the federal government will be playing to support GovGuam.

CATHERINE NORTON: By the year 2014 the island will have grown in population by 25 percent. How that will impact the other major component of the economy -- tourism -- will be a delicate balancing act.

CLIFF GUZMAN: Tourism is right now our number one industry and so that connection has to be balanced because we can't look at this military buildup as one economic linchpin replacing another economic linchpin because there has billions of dollars invested in our tourism industry so balancing that is a very important piece of this.

CATHERINE NORTON: When 90 percent of Guam's tourists come from Japan, some are concerned that relocating U.S. Marines to Guam will tarnish the island's reputation as a pristine and safe family destination.

So while economically a 15-billion dollar Military buildup may bode well for Guam, its impact to Guam's billion dollar tourism industry must be weighed against other economic opportunities.

CLIFF GUZMAN: The concern is whether or not an influx of some 30,000 people onto the island is going to have an effect -- a detrimental effect on those visitors from Japan or Taiwan or the Philippines who come out here to visit. And so the cultural aspect is so important. If we don't try to preserve what we can then -- you know the sun, sand and sea is not going to be enough, it will never be enough because people are looking for an experience beyond just the beach.

CATHERINE NORTON: It is that effort to balance a massive military buildup on a beautiful tourist-dependent island that will be the focus of many of Guam's leaders. This military buildup will reshape the economy and the lives of most Guamanians. The push now among those residents and their leaders is to ensure it is a change for the better.

Reporting for the Online NewsHour, in cooperation with Guam Public Radio KPRG, I am Catherine Norton.

Editor's Note: This story was produced in partnership with the National Minority Consortia.