Good for economy, bad for local culture .
Monday, 26 April 2010 03:57 by Tiffany Sukola
Marianas Variety News Staff
ALTHOUGH concerns have been raised over the long-term social, economic and environmental effects of the impending military buildup, a recent study done by University of Guam students shows that a majority of the general population is in favor of the plan to relocate nearly 8,000 Marines and their dependents from Okinawa to Guam.
University assistant professor Amy Owen and her students recently completed a research project on the perception of local residents regarding the U.S. buildup and related immigration issues. According to their data, a majority of island residents polled believe the buildup will be good for Guam’s economy.
Out of 403 poll-takers, 53 percent view the buildup as positive while 41 percent said otherwise. According to the survey, 71 percent of responders perceive the buildup as good for the economy while 74 percent perceive the buildup as bad for culture.
Owen, who specializes in cultural geography, said the goal of the study was to objectively gather an accurate representation of local views regarding the buildup and related immigration issues.
“Our research also shows that Guam’s culture, though very diverse, is unified and very tolerant of other ethnicities,” said Owen. “There is remarkable uniformity across ethnicities in viewpoints and opinions on a variety of topics as they relate to the buildup.”
Owen said the research indicated that the concern of local residents regarding immigrants is not ethnic; rather it is economic at base. Local residents are concerned that non-residents will take resources like jobs and healthcare.
Of the 403 respondents, Owen said 58 percent identified themselves as Chamorro, 28 percent as Filipino, six percent as other Pacific Islander, four percent as Asian and another 4 percent as Caucasian.
Out of the 403 respondents, 78 percent identified themselves as military or military families.
According to the data, middle age respondents were the most positive about the buildup while younger and older poll-takers viewed the buildup less positively.
Youth are concerned about jobs, land takings and cultural and identity loss according to the study.
Owen said the research indicated that higher incomes and lowest incomes viewed the buildup most positively while middle income groups perceived the military buildup least positive.
The research project, which was submitted to journal Asia Pacific Viewpoint earlier this year, will be officially presented later this week.
Showing posts with label Guam Economy. Show all posts
Showing posts with label Guam Economy. Show all posts
Monday, April 26, 2010
Thursday, February 11, 2010
PNC :: UOG Prof: Guam Spending Multiplier Should Be Recalculated to Account For Buildup
PNC :: UOG Prof: Guam Spending Multiplier Should Be Recalculated to Account For Buildup
Friday, 5 February 2010
Guam - The Military Build Up will have an effect on Guam’s economy, but by how much is up for debate as the multiplier model used in the DIES is based on Hawaii’s consumer spending, which yields a much higher spending multiplier than what would apply to Guam.
Claret Ruane, Ph.D. in Development Economics, a UOG Economics and Finance professor and resident economist for the UOG Pacific Center for Economic Initiatives, explains in a recent technical report that the macroeconomic multipliers, and spending multipliers in particular, used in the DEIS report should be recalculated using a Guam-based model to develop more accurate projections regarding the economic benefit of the proposed military build-up. Ruane posits that the DEIS estimates overstate the build up’s direct and indirect economic impacts by 41-118% during the construction phase and by 17-93% during the operational phase, thus paint a rosier picture than presented.
Read the report here
http://www.uog.edu/admin/assetmanager/images/sbpa%20pcei/pcei_technical_report_issue%208_%20013110.pdf
In her report, Ruane presents a framework on how to adjust the DIES spending multiplier to better reflect Guam’s specific economic conditions. Because of the lack of current economic data on Guam, she is unable to calculate the actual numerical value of Guam’s spending multiplier but presents arguments for why she believe it is probably quite lower than Hawaii’s spending multiplier. This is in contrast to the DEIS that admits Guam’s multiplier to be only slightly lower than Hawaii’s.
Ruane also notes that a cost analysis should be done carefully by Guam-based experts in order to weigh the build up’s benefits and costs to the island.
The report notes one positive aspect of the above analysis: "Should the proposed military build-up remain attractive according to the evaluation suggested above, our estimates suggest that the impact on the island’s economy and the pressure on the island’s limited resources during the peak year would be less than estimated in the DEIS. In a way, our lower estimates relative to those by the Department of the Navy translate to recent requests by the island’s leaders to lengthen the impact period by another four years (from 2010 to 2018 as opposed to 2010 to 2014) so as to spread out the impact of the proposed military build-up and to allow the economy and community some breathing room to adapt and respond more effectively. Although the impact period in our analysis remains the same, the magnitude of the impact has been shown to be less and presumably more manageable.”
Written by : News Release
Friday, 5 February 2010
Guam - The Military Build Up will have an effect on Guam’s economy, but by how much is up for debate as the multiplier model used in the DIES is based on Hawaii’s consumer spending, which yields a much higher spending multiplier than what would apply to Guam.
Claret Ruane, Ph.D. in Development Economics, a UOG Economics and Finance professor and resident economist for the UOG Pacific Center for Economic Initiatives, explains in a recent technical report that the macroeconomic multipliers, and spending multipliers in particular, used in the DEIS report should be recalculated using a Guam-based model to develop more accurate projections regarding the economic benefit of the proposed military build-up. Ruane posits that the DEIS estimates overstate the build up’s direct and indirect economic impacts by 41-118% during the construction phase and by 17-93% during the operational phase, thus paint a rosier picture than presented.
Read the report here
http://www.uog.edu/admin/assetmanager/images/sbpa%20pcei/pcei_technical_report_issue%208_%20013110.pdf
In her report, Ruane presents a framework on how to adjust the DIES spending multiplier to better reflect Guam’s specific economic conditions. Because of the lack of current economic data on Guam, she is unable to calculate the actual numerical value of Guam’s spending multiplier but presents arguments for why she believe it is probably quite lower than Hawaii’s spending multiplier. This is in contrast to the DEIS that admits Guam’s multiplier to be only slightly lower than Hawaii’s.
Ruane also notes that a cost analysis should be done carefully by Guam-based experts in order to weigh the build up’s benefits and costs to the island.
The report notes one positive aspect of the above analysis: "Should the proposed military build-up remain attractive according to the evaluation suggested above, our estimates suggest that the impact on the island’s economy and the pressure on the island’s limited resources during the peak year would be less than estimated in the DEIS. In a way, our lower estimates relative to those by the Department of the Navy translate to recent requests by the island’s leaders to lengthen the impact period by another four years (from 2010 to 2018 as opposed to 2010 to 2014) so as to spread out the impact of the proposed military build-up and to allow the economy and community some breathing room to adapt and respond more effectively. Although the impact period in our analysis remains the same, the magnitude of the impact has been shown to be less and presumably more manageable.”
Written by : News Release
Thursday, December 17, 2009
Bank Of Guam Economist Urges: Post-Buildup Is Critical
Bank Of Guam Economist Urges: Post-Buildup Is Critical
Written by Jeff Marchesseault, Guam News Factor Staff Writer
Thursday, 17 December 2009 16:10
GUAM – Noted Bank of Guam Economist Joe Bradley says the more attention we give to the post-buildup, the better shape we'll be in afterwards.
Otherwise, the military expansion could shape into a classic case of boom and bust. He predicts a recession on island by 2016 if the investment community doesn't do something fast to diversify the economy, so it doesn't fall apart when tens of thousands of buildup-era workers leave Guam.
Drawing a deep breath, Bradley called it like he saw it today. "The boom scares me to death and the bust scares me to death. It's going to be huge on both sides of the coin," he said at a meeting of business leaders hosted by the Guam Economic Development Authority at the ITC building in Tamuning today.
The economist spoke before the Civilian Military Task Force's Economic Development Subcommittee at GEDA's conference room. It's the first CMTF subcommittee to address the Department of Defense's Draft Environmental Impact Statement for the $15 billion buildup scheduled to take place on Guam between 2010 and 2014.
Bradley says Guam's economy is over-dependent on construction cycles, and Guam workers deserve training. Training to help displace the two-thirds of buildup jobs that will otherwise go to imported workers. Training in the skill sets that will sustain a burgeoning private sector when the buildup era ends.
Written by Jeff Marchesseault, Guam News Factor Staff Writer
Thursday, 17 December 2009 16:10
GUAM – Noted Bank of Guam Economist Joe Bradley says the more attention we give to the post-buildup, the better shape we'll be in afterwards.
Otherwise, the military expansion could shape into a classic case of boom and bust. He predicts a recession on island by 2016 if the investment community doesn't do something fast to diversify the economy, so it doesn't fall apart when tens of thousands of buildup-era workers leave Guam.
Drawing a deep breath, Bradley called it like he saw it today. "The boom scares me to death and the bust scares me to death. It's going to be huge on both sides of the coin," he said at a meeting of business leaders hosted by the Guam Economic Development Authority at the ITC building in Tamuning today.
The economist spoke before the Civilian Military Task Force's Economic Development Subcommittee at GEDA's conference room. It's the first CMTF subcommittee to address the Department of Defense's Draft Environmental Impact Statement for the $15 billion buildup scheduled to take place on Guam between 2010 and 2014.
Bradley says Guam's economy is over-dependent on construction cycles, and Guam workers deserve training. Training to help displace the two-thirds of buildup jobs that will otherwise go to imported workers. Training in the skill sets that will sustain a burgeoning private sector when the buildup era ends.
Friday, December 04, 2009
Economic excitement fizzles
Economic excitement fizzles
Friday, 04 December 2009 04:18
by Therese Hart | Variety News Staff
DEIS says there’s not much to expect from military buildup
MANY local business leaders and government of Guam officials continue to believe the looming military buildup will bring about an economic bonanza for the local economy and government coffers.
However, a careful reading of the recently released draft environmental impact study done by the military as a critical guiding document for the military development planned for Guam makes it clear that is not true.
The military study determined money that will actually enter the local economy will have very little effect as Guam will experience low capture rates.
Capture rate is the term describing the portion of new construction or operational expenditures expected to circulate, or be captured, within the local economy.
Citing a large percentage of foreign workers and their high rate of remittances, limited military spending at off-base enterprises and an increasing trade deficit, the impact report dryly spins technical data detailing how Guam is expected to lose out on the economic boon of the military buildup as it has been hyped thus far.
Easy come, easy go
During the construction phase of the impending buildup, a considerable portion of labor is expected to come from off-island, mostly from the Philippines. Notably, H2 workers tend to spend considerably less of their earned income in the Guam economy, instead remitting large sums off-island to their place of origin, to support families who in turn take that money and circulate it in their economies.
Guam residents working on military-related projects are naturally expected to spend a greater deal at local businesses than foreign workers.
But, the exploding population of Marines and Army personnel, their dependents, workers to support the realignment and other projects, who are housed on-base are likely going to do much of their spending with on-base businesses.
Establishments operating on-base are mostly headquartered off-island and that is where those hefty profits margins will go.
Not made on Guam
Almost all of the goods needed to construct or operate military bases would not be produced on Guam. The island would capture much lesser value than often anticipated from goods shipped from off-island and onto military bases.
Geographic isolation and low-production capacities have contributed to a near-total reliance on valuable imports. In 2008, the assessment of Guam’s imports stood at $225 million, more than twice the export value of $105 million. The island’s trade deficit was $120 million at the end of that year.
Furthermore, Guam exports do not provide a strong trade position for the territory as the most prominent exports in 2008 were vehicles. That accounted for nearly 50 percent of total exports.
But cars are not manufactured and built on Guam representing an export with zero production value for the island.
Not cashing in
The capture rate during the initial period of construction is determined by how much firms will expend for required goods and services and construction workers for their household needs. Neither of these sources is expected to contribute as much to the Guam economy, the impact report states, as it might in other regions.
The Guam Contractors Association anticipates a meager 17.5 percent of total construction expenditures will actually be spent on Guam goods and services, including 5.5 percent on equipment and supplies from Guam companies; 5 percent on Guam-supplied materials (mostly rock products); and 1.5 percent on Guam architectural and engineering services.
Catch up rate
Once the military buildup is complete and encampments and installations are operational, another supposed economic stimulus often touted by local and federal officials begins to look a lot weaker as well.
The amount of money spent locally by military bases to staff and operate the larger military enterprises on Guam determines the capture rate of monies during the operation phase of the buildup.
In general, Guam companies do not capture a large portion of military contracts of the largest, most lucrative contracts to date all going to off-island companies even when credible local options have tried to avail themselves of the opportunities with the realignment.
In 2008, only 42 percent of contracts for military related work on Guam went to Guam companies.
Other issues that complicate the retention of any considerable economic long-lasting benefit to the island include military housing provided by the government rather than through the private sector and local shippers and wholesalers that find it difficult to capture meaningful margins with products sold on-base.
Even then, the majority of the value is never realized when imported goods are sold on-base and profits not reinvested locally.
Friday, 04 December 2009 04:18
by Therese Hart | Variety News Staff
DEIS says there’s not much to expect from military buildup
MANY local business leaders and government of Guam officials continue to believe the looming military buildup will bring about an economic bonanza for the local economy and government coffers.
However, a careful reading of the recently released draft environmental impact study done by the military as a critical guiding document for the military development planned for Guam makes it clear that is not true.
The military study determined money that will actually enter the local economy will have very little effect as Guam will experience low capture rates.
Capture rate is the term describing the portion of new construction or operational expenditures expected to circulate, or be captured, within the local economy.
Citing a large percentage of foreign workers and their high rate of remittances, limited military spending at off-base enterprises and an increasing trade deficit, the impact report dryly spins technical data detailing how Guam is expected to lose out on the economic boon of the military buildup as it has been hyped thus far.
Easy come, easy go
During the construction phase of the impending buildup, a considerable portion of labor is expected to come from off-island, mostly from the Philippines. Notably, H2 workers tend to spend considerably less of their earned income in the Guam economy, instead remitting large sums off-island to their place of origin, to support families who in turn take that money and circulate it in their economies.
Guam residents working on military-related projects are naturally expected to spend a greater deal at local businesses than foreign workers.
But, the exploding population of Marines and Army personnel, their dependents, workers to support the realignment and other projects, who are housed on-base are likely going to do much of their spending with on-base businesses.
Establishments operating on-base are mostly headquartered off-island and that is where those hefty profits margins will go.
Not made on Guam
Almost all of the goods needed to construct or operate military bases would not be produced on Guam. The island would capture much lesser value than often anticipated from goods shipped from off-island and onto military bases.
Geographic isolation and low-production capacities have contributed to a near-total reliance on valuable imports. In 2008, the assessment of Guam’s imports stood at $225 million, more than twice the export value of $105 million. The island’s trade deficit was $120 million at the end of that year.
Furthermore, Guam exports do not provide a strong trade position for the territory as the most prominent exports in 2008 were vehicles. That accounted for nearly 50 percent of total exports.
But cars are not manufactured and built on Guam representing an export with zero production value for the island.
Not cashing in
The capture rate during the initial period of construction is determined by how much firms will expend for required goods and services and construction workers for their household needs. Neither of these sources is expected to contribute as much to the Guam economy, the impact report states, as it might in other regions.
The Guam Contractors Association anticipates a meager 17.5 percent of total construction expenditures will actually be spent on Guam goods and services, including 5.5 percent on equipment and supplies from Guam companies; 5 percent on Guam-supplied materials (mostly rock products); and 1.5 percent on Guam architectural and engineering services.
Catch up rate
Once the military buildup is complete and encampments and installations are operational, another supposed economic stimulus often touted by local and federal officials begins to look a lot weaker as well.
The amount of money spent locally by military bases to staff and operate the larger military enterprises on Guam determines the capture rate of monies during the operation phase of the buildup.
In general, Guam companies do not capture a large portion of military contracts of the largest, most lucrative contracts to date all going to off-island companies even when credible local options have tried to avail themselves of the opportunities with the realignment.
In 2008, only 42 percent of contracts for military related work on Guam went to Guam companies.
Other issues that complicate the retention of any considerable economic long-lasting benefit to the island include military housing provided by the government rather than through the private sector and local shippers and wholesalers that find it difficult to capture meaningful margins with products sold on-base.
Even then, the majority of the value is never realized when imported goods are sold on-base and profits not reinvested locally.
Monday, November 23, 2009
Guam Governor's Mis"STATE"ment Brings Economic Opportunity To Our Island
Guam Governor's Mis"STATE"ment Brings Economic Opportunity To Our Island
Taiwan Business Executives Bring 'Construction Mission' To Tumon
Written by Guam News Factor Staff Writer
Monday, 23 November 2009 15:49
GUAM - Thirty-five senior business executives from Taiwan are on Guam today to explore ways to invest their money in our island. According to the Guam Economic Development Authority, this "Construction Mission" is the direct result of the Governor's May visit to Taiwan. While the local media and politicians were highly critical of the Governor's Office's claim that it was a state visit, it is obvious that Adelup's mis"STATE"ment has brought potential new money into our island. No matter what you call it...progress is progress. Kudos to Governor Camacho.
Today scores of eager Taiwan entrepreneurs and their local counterparts converged at the Hilton Guam Resort & Spa's main ballroom to talk shop and show their wares. The Taiwan execs sported placards, laptops, samples and stacks of binders as they gave their 60-second elevator pitches to those already vested in Guam.
It was an exciting display of productive community-to-community interaction and a sheer sign the Governor meant business on his last official trip to Taiwan.
The 2009 Taiwan Construction Mission to Guam got underway on Saturday and ends Wednesday.
Taiwan Business Executives Bring 'Construction Mission' To Tumon
Written by Guam News Factor Staff Writer
Monday, 23 November 2009 15:49
GUAM - Thirty-five senior business executives from Taiwan are on Guam today to explore ways to invest their money in our island. According to the Guam Economic Development Authority, this "Construction Mission" is the direct result of the Governor's May visit to Taiwan. While the local media and politicians were highly critical of the Governor's Office's claim that it was a state visit, it is obvious that Adelup's mis"STATE"ment has brought potential new money into our island. No matter what you call it...progress is progress. Kudos to Governor Camacho.
Today scores of eager Taiwan entrepreneurs and their local counterparts converged at the Hilton Guam Resort & Spa's main ballroom to talk shop and show their wares. The Taiwan execs sported placards, laptops, samples and stacks of binders as they gave their 60-second elevator pitches to those already vested in Guam.
It was an exciting display of productive community-to-community interaction and a sheer sign the Governor meant business on his last official trip to Taiwan.
The 2009 Taiwan Construction Mission to Guam got underway on Saturday and ends Wednesday.
Wednesday, November 18, 2009
Economist: Guam needs to expand industries
Economist: Guam needs to expand industries
Wednesday, 18 November 2009 05:21
by Jude Lizama | Variety News Staff
“THERE has to be more,” University of Guam’s resident economist Dr. M. Claret Ruane said of the need to diversify the island’s economy and build further stability aside from deep dependence on the tourism industry, U.S. military presence and the local economy.
Ruane, alongside UOG president Dr. Robert Underwood, provided closing commentary at the recent Guam Community and Economic Development Forum: Strategies for a Sustainable Future.
“An event of this magnitude, which is an initial event, leaves a lot of questions unanswered,” Underwood said in his closing remarks. “The nature of the event is to find the questions that should be answered, and those questions are very deep and far reaching and they require a lot of data.”
Ruane discussed some components of “The Making of the Pacific Tiger: Lessons from the Celtic Tiger,” which was also co-authored by UOG’s dean of the School of Business and Public Administration Dr. Anita Borja-Enriquez, and current law student at the University of San Francisco’s School of Law Vanessa Lee Williams.
The six strategies proposed in “The Making of the Pacific Tiger” include the continuation of openness toward global markets and foreign investment; further investment in human capital focused on education, skill building and training; ensuring the availability of a creative and productive workforce; pursuance of public sector reform and fiscal discipline; engaging in effective policymaking to guide development; and enduring through hard work and sacrifice.
“This event has provided the opportunity to discuss issues and explore solutions. We are planning for our future together,” Ruane said, referring to the economic development forum. “The Guam economy has a lot of promise for growth but has not really achieved its potential since 1996.”
Ruane added that although tourism will likely remain a strong component of the local economy, it remains undiversified.
“This is a beautiful island with a lot of human and natural resources, with a lot of talent; and yet, not reaching its potential for growth. I think that’s a sad story to tell,” Ruane said. “We should be asking: What can I do to propel this economy forward given all the resources that we have and the resources that we can develop together?”
Discussing the issue of how to develop the island, Ruane said, “Whatever the answer is we have to do it together. We are a community.”
The UOG economist also reiterated the need to allocate resources in order to achieve initiatives such as cultural preservation and diversification of the local economy.
“Culture and environment are important issues, but they are a luxury. You need resources to protect them and preserve them,” she said. “If these things are important to us, they should be reflected in the budget. We should be getting resources to support these things.”
Wednesday, 18 November 2009 05:21
by Jude Lizama | Variety News Staff
“THERE has to be more,” University of Guam’s resident economist Dr. M. Claret Ruane said of the need to diversify the island’s economy and build further stability aside from deep dependence on the tourism industry, U.S. military presence and the local economy.
Ruane, alongside UOG president Dr. Robert Underwood, provided closing commentary at the recent Guam Community and Economic Development Forum: Strategies for a Sustainable Future.
“An event of this magnitude, which is an initial event, leaves a lot of questions unanswered,” Underwood said in his closing remarks. “The nature of the event is to find the questions that should be answered, and those questions are very deep and far reaching and they require a lot of data.”
Ruane discussed some components of “The Making of the Pacific Tiger: Lessons from the Celtic Tiger,” which was also co-authored by UOG’s dean of the School of Business and Public Administration Dr. Anita Borja-Enriquez, and current law student at the University of San Francisco’s School of Law Vanessa Lee Williams.
The six strategies proposed in “The Making of the Pacific Tiger” include the continuation of openness toward global markets and foreign investment; further investment in human capital focused on education, skill building and training; ensuring the availability of a creative and productive workforce; pursuance of public sector reform and fiscal discipline; engaging in effective policymaking to guide development; and enduring through hard work and sacrifice.
“This event has provided the opportunity to discuss issues and explore solutions. We are planning for our future together,” Ruane said, referring to the economic development forum. “The Guam economy has a lot of promise for growth but has not really achieved its potential since 1996.”
Ruane added that although tourism will likely remain a strong component of the local economy, it remains undiversified.
“This is a beautiful island with a lot of human and natural resources, with a lot of talent; and yet, not reaching its potential for growth. I think that’s a sad story to tell,” Ruane said. “We should be asking: What can I do to propel this economy forward given all the resources that we have and the resources that we can develop together?”
Discussing the issue of how to develop the island, Ruane said, “Whatever the answer is we have to do it together. We are a community.”
The UOG economist also reiterated the need to allocate resources in order to achieve initiatives such as cultural preservation and diversification of the local economy.
“Culture and environment are important issues, but they are a luxury. You need resources to protect them and preserve them,” she said. “If these things are important to us, they should be reflected in the budget. We should be getting resources to support these things.”
‘Guam can be a Tiger economy’
‘Guam can be a Tiger economy’
Tuesday, 17 November 2009 01:42
by Jude Lizama | Variety News Staff
WITH or without the military buildup, Guam has what it takes to develop its economy and the island must take advantage of its assets, according to an economic developer from Arizona.
Gayle Cooper, executive director of the Economic Development Group of Eloy, Arizona, presented “Guam: Making the Pacific Tiger” during the recently concluded Guam Community and Economic Development Forum, which provided possible strategies to improving the island’s economic landscape.
“One of the first things you learn in economic development is to know your client. If you’re a good ‘economic development’ person you never look at anything from your own perspective, you look at through the perspective of your client,” Cooper said.
“This island has such a golden opportunity with or without an influx of increased military presence. It is in the ideal situation for making the best of its economy right now,” she added.
Strategies for improvement, according to Cooper, include developing and educating local talent, attracting an educated workforce, partnering with others, accentuating strengths, and minimizing the negatives of cultural diversity.
Cooper warned Guam to be wary of “CAVE men,” which stands for “citizens against virtually everything,” and can be a destructive component against development.
In order to become the Pacific Tiger, Cooper said there must be an improvement in educational levels, comprehensive on-island healthcare, preservation of culture, good jobs and wages, and an increase in housing availability and affordability. While Cooper agreed that the preservation of culture is critical, it is but a component of the larger picture to develop economically.
“You cannot be single issued in today’s world. In a global economy you cannot be isolationists,” she said. “We cannot build a wall around the island. There is a lot changing. We are all part of it.”
“Anything that is not sustainable is not economic development,” Cooper said, adding that respective projects that do not promote economic, social, and environmental benefits for the community should not be brought to the table.
Additionally, Cooper stated that the island’s cultural diversity is “a big plus.”
“Cultural diversity as opposed to a truly homogenous society is a big advantage because it brings in many different viewpoints and it brings in the advantages that we have enabled through so many centuries of intermarriage and movement around our earth to bring people more and more to the best they can be,” she said.
The Arizona based economic developer said an undiversified economy and educational levels go together.
“It is evident that without the military and tourism there wouldn’t be a lot here. You have not capitalized yet on your military presence as you’re bringing engineers and companies that produce product and work with the military your economy will grow astronomically and the jobs will grow,” she said.
“However,” she added, “you need that educational attainment in order for those jobs to be built by the Chamorros and people who live here in Guam. The big thing is we haven’t challenged our youth to go for it.”
Tuesday, 17 November 2009 01:42
by Jude Lizama | Variety News Staff
WITH or without the military buildup, Guam has what it takes to develop its economy and the island must take advantage of its assets, according to an economic developer from Arizona.
Gayle Cooper, executive director of the Economic Development Group of Eloy, Arizona, presented “Guam: Making the Pacific Tiger” during the recently concluded Guam Community and Economic Development Forum, which provided possible strategies to improving the island’s economic landscape.
“One of the first things you learn in economic development is to know your client. If you’re a good ‘economic development’ person you never look at anything from your own perspective, you look at through the perspective of your client,” Cooper said.
“This island has such a golden opportunity with or without an influx of increased military presence. It is in the ideal situation for making the best of its economy right now,” she added.
Strategies for improvement, according to Cooper, include developing and educating local talent, attracting an educated workforce, partnering with others, accentuating strengths, and minimizing the negatives of cultural diversity.
Cooper warned Guam to be wary of “CAVE men,” which stands for “citizens against virtually everything,” and can be a destructive component against development.
In order to become the Pacific Tiger, Cooper said there must be an improvement in educational levels, comprehensive on-island healthcare, preservation of culture, good jobs and wages, and an increase in housing availability and affordability. While Cooper agreed that the preservation of culture is critical, it is but a component of the larger picture to develop economically.
“You cannot be single issued in today’s world. In a global economy you cannot be isolationists,” she said. “We cannot build a wall around the island. There is a lot changing. We are all part of it.”
“Anything that is not sustainable is not economic development,” Cooper said, adding that respective projects that do not promote economic, social, and environmental benefits for the community should not be brought to the table.
Additionally, Cooper stated that the island’s cultural diversity is “a big plus.”
“Cultural diversity as opposed to a truly homogenous society is a big advantage because it brings in many different viewpoints and it brings in the advantages that we have enabled through so many centuries of intermarriage and movement around our earth to bring people more and more to the best they can be,” she said.
The Arizona based economic developer said an undiversified economy and educational levels go together.
“It is evident that without the military and tourism there wouldn’t be a lot here. You have not capitalized yet on your military presence as you’re bringing engineers and companies that produce product and work with the military your economy will grow astronomically and the jobs will grow,” she said.
“However,” she added, “you need that educational attainment in order for those jobs to be built by the Chamorros and people who live here in Guam. The big thing is we haven’t challenged our youth to go for it.”
Tuesday, October 13, 2009
CNMI to 'support' Guam on military buildup
77-page draft document seeks public input
By Haidee V. Eugenio
Reporter
The CNMI plans to provide operational support and services to Guam instead of viewing the neighbor island as a “competition” to maximize benefits from the $15-billion, multi-year U.S. military buildup in Guam.
This highlights the 77-page draft document, “A Strategic Approach: Utilizing CNMI's Natural Resources to Provide Complimentary [sic] Support to DoD Guam.”
The publication of the document marks the first time that the CNMI government has come up with a written plan on how to benefit from the movement of some 8,000 Marines from Okinawa to Guam, some 17,000 family members, and up to 20,000 federal construction workers to the island.
The public has until this Friday, Oct. 16, to comment on the draft document.
These operational and support services, which are detailed in the draft report, include the CNMI providing airport and seaport facilities for deployment, training and relocation; provide ground forces training areas; provide storage facilities; provide solid food like “meals ready to eat” for military personnel; catering services; and lastly, provide a rest and recreation destination for military personnel.
Project Management Operations LLC, a Colorado-based global provider of project management and information technology operation consulting services, prepared the draft document as consultants to the CNMI Department of Commerce and Gov. Benigno R. Fitial's Strategic Economic Development Council (SEDC).
In recent months, top U.S. military officials, including Navy Secretary Ray Mabus, visited Saipan as part of a familiarization tour in the Pacific region.
So far, however, the U.S. military has not announced concrete plans for the CNMI when it comes to the buildup on Guam.
Press secretary Charles Reyes, when asked for comment on the draft document yesterday, said the U.S. military regional buildup is strongly viewed as one of the main sources of economic opportunity for an economic recovery, in a critical period under federalization.
He said the CNMI government and the CNMI private business sector are closely collaborating to maximize the economic benefits and reduce the costs of the Marianas U.S. military buildup.
“We want to make sure that the CNMI works with Guam, the federal government, the military, and all stakeholders to ensure a smooth transition into a new economy with federalization and the U.S. military buildup. This effort is but a starting point. Much still needs to be done. We must also coordinate our efforts with the Tinian leadership,” Reyes told Saipan Tribune.
The federal government will take over CNMI immigration by Nov. 28, 2009 as mandated by U.S. Public Law 110-229 or the Consolidated Natural Resources Act.
Among other things, the CNMI may lose its critical Chinese and Russian tourist markets under the visa waiver program of the federalization law. This means millions in tourism revenue loss for the CNMI.
But the void left by these two tourist market, should no legislative fix or administrative fix occur, can be filled up by economic benefits of the regional military buildup in Guam.
Strategic goal
The draft document's goal is to emphasize military opportunities associated with the regional buildup as the CNMI tries to understand how the military buildup can be beneficial to its people.
Currently, there are three recommended choices of strategy:
1. Treat Guam as the competition regarding military operations and service support;
2. Recognize Guam as an ally and offer complementary operational support and services; and
3. Maintain status quo by continuing to market the CNMI's natural resources to the surrounding populations.
Consultants Project Management Operations LLC, in the draft document, recommends for the CNMI to choose option 2 - be a complement to Guam's military buildup with the following strategy focuses in order of importance: operational support; supply and maintenance; and quality of life services.
“If the CNMI views Guam as a partner, then together, the communities can provide a complementary set of operational support, supply and services, along with the opportunities to utilize the natural resources and beauty that the CNMI offers. The islands can enjoy the successes of Guam and reap the benefits of the increased revenue opportunities for the near and long term alike,” the draft document said.
If the CNMI views Guam as its competition regarding military operations and support “then the CNMI has lost,” the consultants said.
CNMI military opportunities
The CNMI, being a U.S. territory and its capital island of Saipan only 120 miles from Guam, can provide alternate airport and seaport facilities that could be used to enhance training opportunities for deployment training, and operations and maintenance logistics function, the document said.
In addition to the training opportunities, the airfield operations facilities, supported by the U.S. Air Force Guam operations staff, provide alternate hangar capacity in the case of relocation of aircraft and crews due to mission requirements and/or weather.
“The CNMI's natural resources and proximity to the other forces in the region give it a unique competitive advantage that should be explored. The CNMI's unique situation provides the DoD with an excellent option for training and support services,” the consultants said.
The CNMI's resources can also be used to provide surface training areas.
For example, a small arms training range, which is being planned for Tinian, is an excellent way for the CNMI to use its resources to meet the needs of the Marines and take advantage of the chance to provide critical operational support while gaining the opportunity to receive capital investment into the CNMI economy.
Historically, ranges of this nature have been estimated to provide between $10 million and $25 million in capital investment into the construction of the project.
“The CNMI has the opportunity to propose further capital investments by offering land for ammunition storage facilities on Tinian. The users of this range will require ammunition for each training rotation,” the draft document said.
Other potential and specific opportunities the CNMI may have with the U.S. Department of Defense: port of embarkation and debarkation; staging of prepositioned equipment; deployment support; deployment training; and ground forces training.
“Overall, [this gives] the best opportunity for the CNMI to show its awareness of the DoD's needs and to demonstrate its willingness to support the U.S. mission in the region. The CNMI needs to move swiftly, but surely, to secure a seat at the table when support operations are being discussed,” the consultants said.
Under the military supply and maintenance support, the CNMI can provide fuel storage and distribution; water storage and distribution; waste removal and processing; food handling and distribution; provide meals, catering services, potable water and ice; provide depot and field level maintenance as well as electronic maintenance; and storage facilities of all kinds.
Lastly, the CNMI can be a place where military service personnel can relax.
“The calm waters and placid beaches set an amazing backdrop that can be utilized to provide the much needed rest and relaxation opportunities that the DoD provides to its service members and families,” the draft report said.
Wanted: Military liaison
Consultants Project Management Operations LLC, in the draft document, also recommended the CNMI's hiring of a military liaison “to help create the necessary relationships to effectively meet both the military's and the CNMI's requirements.”
“The CNMI needs that person who can build rapport by speaking the language and understanding the needs of the [Department of Defense] while maintaining vigilant support of the CNMI's resources, heritage and goals for providing support to the DoD and its allies,” the document reads.
A copy of the draft document is now available on the CNMI Department of Commerce website, www.commerce.gov.mp.
Comments on the draft document can be sent to commercedept@pticom.com.
By Haidee V. Eugenio
Reporter
The CNMI plans to provide operational support and services to Guam instead of viewing the neighbor island as a “competition” to maximize benefits from the $15-billion, multi-year U.S. military buildup in Guam.
This highlights the 77-page draft document, “A Strategic Approach: Utilizing CNMI's Natural Resources to Provide Complimentary [sic] Support to DoD Guam.”
The publication of the document marks the first time that the CNMI government has come up with a written plan on how to benefit from the movement of some 8,000 Marines from Okinawa to Guam, some 17,000 family members, and up to 20,000 federal construction workers to the island.
The public has until this Friday, Oct. 16, to comment on the draft document.
These operational and support services, which are detailed in the draft report, include the CNMI providing airport and seaport facilities for deployment, training and relocation; provide ground forces training areas; provide storage facilities; provide solid food like “meals ready to eat” for military personnel; catering services; and lastly, provide a rest and recreation destination for military personnel.
Project Management Operations LLC, a Colorado-based global provider of project management and information technology operation consulting services, prepared the draft document as consultants to the CNMI Department of Commerce and Gov. Benigno R. Fitial's Strategic Economic Development Council (SEDC).
In recent months, top U.S. military officials, including Navy Secretary Ray Mabus, visited Saipan as part of a familiarization tour in the Pacific region.
So far, however, the U.S. military has not announced concrete plans for the CNMI when it comes to the buildup on Guam.
Press secretary Charles Reyes, when asked for comment on the draft document yesterday, said the U.S. military regional buildup is strongly viewed as one of the main sources of economic opportunity for an economic recovery, in a critical period under federalization.
He said the CNMI government and the CNMI private business sector are closely collaborating to maximize the economic benefits and reduce the costs of the Marianas U.S. military buildup.
“We want to make sure that the CNMI works with Guam, the federal government, the military, and all stakeholders to ensure a smooth transition into a new economy with federalization and the U.S. military buildup. This effort is but a starting point. Much still needs to be done. We must also coordinate our efforts with the Tinian leadership,” Reyes told Saipan Tribune.
The federal government will take over CNMI immigration by Nov. 28, 2009 as mandated by U.S. Public Law 110-229 or the Consolidated Natural Resources Act.
Among other things, the CNMI may lose its critical Chinese and Russian tourist markets under the visa waiver program of the federalization law. This means millions in tourism revenue loss for the CNMI.
But the void left by these two tourist market, should no legislative fix or administrative fix occur, can be filled up by economic benefits of the regional military buildup in Guam.
Strategic goal
The draft document's goal is to emphasize military opportunities associated with the regional buildup as the CNMI tries to understand how the military buildup can be beneficial to its people.
Currently, there are three recommended choices of strategy:
1. Treat Guam as the competition regarding military operations and service support;
2. Recognize Guam as an ally and offer complementary operational support and services; and
3. Maintain status quo by continuing to market the CNMI's natural resources to the surrounding populations.
Consultants Project Management Operations LLC, in the draft document, recommends for the CNMI to choose option 2 - be a complement to Guam's military buildup with the following strategy focuses in order of importance: operational support; supply and maintenance; and quality of life services.
“If the CNMI views Guam as a partner, then together, the communities can provide a complementary set of operational support, supply and services, along with the opportunities to utilize the natural resources and beauty that the CNMI offers. The islands can enjoy the successes of Guam and reap the benefits of the increased revenue opportunities for the near and long term alike,” the draft document said.
If the CNMI views Guam as its competition regarding military operations and support “then the CNMI has lost,” the consultants said.
CNMI military opportunities
The CNMI, being a U.S. territory and its capital island of Saipan only 120 miles from Guam, can provide alternate airport and seaport facilities that could be used to enhance training opportunities for deployment training, and operations and maintenance logistics function, the document said.
In addition to the training opportunities, the airfield operations facilities, supported by the U.S. Air Force Guam operations staff, provide alternate hangar capacity in the case of relocation of aircraft and crews due to mission requirements and/or weather.
“The CNMI's natural resources and proximity to the other forces in the region give it a unique competitive advantage that should be explored. The CNMI's unique situation provides the DoD with an excellent option for training and support services,” the consultants said.
The CNMI's resources can also be used to provide surface training areas.
For example, a small arms training range, which is being planned for Tinian, is an excellent way for the CNMI to use its resources to meet the needs of the Marines and take advantage of the chance to provide critical operational support while gaining the opportunity to receive capital investment into the CNMI economy.
Historically, ranges of this nature have been estimated to provide between $10 million and $25 million in capital investment into the construction of the project.
“The CNMI has the opportunity to propose further capital investments by offering land for ammunition storage facilities on Tinian. The users of this range will require ammunition for each training rotation,” the draft document said.
Other potential and specific opportunities the CNMI may have with the U.S. Department of Defense: port of embarkation and debarkation; staging of prepositioned equipment; deployment support; deployment training; and ground forces training.
“Overall, [this gives] the best opportunity for the CNMI to show its awareness of the DoD's needs and to demonstrate its willingness to support the U.S. mission in the region. The CNMI needs to move swiftly, but surely, to secure a seat at the table when support operations are being discussed,” the consultants said.
Under the military supply and maintenance support, the CNMI can provide fuel storage and distribution; water storage and distribution; waste removal and processing; food handling and distribution; provide meals, catering services, potable water and ice; provide depot and field level maintenance as well as electronic maintenance; and storage facilities of all kinds.
Lastly, the CNMI can be a place where military service personnel can relax.
“The calm waters and placid beaches set an amazing backdrop that can be utilized to provide the much needed rest and relaxation opportunities that the DoD provides to its service members and families,” the draft report said.
Wanted: Military liaison
Consultants Project Management Operations LLC, in the draft document, also recommended the CNMI's hiring of a military liaison “to help create the necessary relationships to effectively meet both the military's and the CNMI's requirements.”
“The CNMI needs that person who can build rapport by speaking the language and understanding the needs of the [Department of Defense] while maintaining vigilant support of the CNMI's resources, heritage and goals for providing support to the DoD and its allies,” the document reads.
A copy of the draft document is now available on the CNMI Department of Commerce website, www.commerce.gov.mp.
Comments on the draft document can be sent to commercedept@pticom.com.
Tuesday, October 06, 2009
Life on Guam getting more expensive
Life on Guam getting more expensive
Wednesday, 07 October 2009 03:33 by Jude Lizama | Variety News Staff
AS ALMOST anyone who shops or rents a home or apartment here can tell you, the cost of living on Guam continues to rise as household earnings contract even further. The island’s most recent consumer price index of 106.9 shows a marked increase of 1.4 percent over the second quarter.
In the meantime, the most recent Department of Labor statistics reflect the total number of jobs on Guam declined measurably in the preliminary statistics, as of this summer, as did private sector employment and average weekly hours paid.
The private sector particularly has been significantly affected by reduced visitor arrival numbers.
The latest figure from Bureau of Statistics and Plans found third quarter prices this year reflected less than one percent over the same period last year.
But, much like CPI data from a year ago, the dollar's buying power remains at a dismal 64 cents on the dollar for consumers when compared to conditions for the base year 1996.
However, due to the current global economic crises, there is some, though little, respite in the cost of sheltering a family on Guam. Last year’s growth rates for the second and third quarters reflect an almost identical rate of growth of 2.4 and 2.8 percent, respectively.
However, growth over the last year is minimal at 1.6 percent, especially when compared with the 2007 to 2008 increase of 10.9 percent for rent and lodging expenses on island.
And, then there is the price of gas; it continues to creep up at just under one percent from the preceding quarter, but nearly by three percent when compared to the same period last year. Between the third quarter of ’08 and this year, costs for home fuel and electricity showed a slight decrease, less than a half a percentage point for and 13.2 percent, respectively.
Water, sewer and trash costs pushed higher though, increasing almost 25 percent for rate payers of these services.
According to the DOL website, higher costs of living strained an already precarious situation for workers who have seen their buying power slashed by the increase in expenses and a reduction in earning power.
The DOL June 2009 employment report notes the average weekly hours paid to workers in the hospitality industry, a chief employer on Guam, declined dramatically. Paid hours averaged 31.7 in June, down from 36.4 the same period last year. In percentage terms, hours worked declined 13% in hotels, 7% in retail and 4% for all private industry for the comparable period. Private total average weekly earnings were little changed, however, as higher hourly earnings offset the decline in hours worked.
As Guam’s hospital progresses towards accreditation, solvency will remain an issue as residents are likely to still find it hard to meet the high costs associated with medical care on Guam. Healthcare expenses showed an increase of 3.1 percent when compared to last year’s third quarter index.
While shoppers have by now noticed that cereal products, poultry, and fish and seafood have increased by 3.6, 10.3, and 22.9 percent from one year ago, the index on beef, pork, eggs, dairy products, and fresh fruits actually reflect some relief with drops of 9.0, 11.3, 8.4, and 0.8 percent when compared to the same period in 2008.
Education was a bright spot in the report as communication, educational books and supplies, and computers all showed some easing of inflation, led by computers with a price drop of nearly 18 percent largely due to manufacturers cutting costs in line with conservative spending habits as a result of the financial meltdown of word stock markets.
Other areas that show inflationary creep in the Bureau statistics include tuition and other school fees, and telephone services which rose mildly at less than one half of 1 percent.
Wednesday, 07 October 2009 03:33 by Jude Lizama | Variety News Staff
AS ALMOST anyone who shops or rents a home or apartment here can tell you, the cost of living on Guam continues to rise as household earnings contract even further. The island’s most recent consumer price index of 106.9 shows a marked increase of 1.4 percent over the second quarter.
In the meantime, the most recent Department of Labor statistics reflect the total number of jobs on Guam declined measurably in the preliminary statistics, as of this summer, as did private sector employment and average weekly hours paid.
The private sector particularly has been significantly affected by reduced visitor arrival numbers.
The latest figure from Bureau of Statistics and Plans found third quarter prices this year reflected less than one percent over the same period last year.
But, much like CPI data from a year ago, the dollar's buying power remains at a dismal 64 cents on the dollar for consumers when compared to conditions for the base year 1996.
However, due to the current global economic crises, there is some, though little, respite in the cost of sheltering a family on Guam. Last year’s growth rates for the second and third quarters reflect an almost identical rate of growth of 2.4 and 2.8 percent, respectively.
However, growth over the last year is minimal at 1.6 percent, especially when compared with the 2007 to 2008 increase of 10.9 percent for rent and lodging expenses on island.
And, then there is the price of gas; it continues to creep up at just under one percent from the preceding quarter, but nearly by three percent when compared to the same period last year. Between the third quarter of ’08 and this year, costs for home fuel and electricity showed a slight decrease, less than a half a percentage point for and 13.2 percent, respectively.
Water, sewer and trash costs pushed higher though, increasing almost 25 percent for rate payers of these services.
According to the DOL website, higher costs of living strained an already precarious situation for workers who have seen their buying power slashed by the increase in expenses and a reduction in earning power.
The DOL June 2009 employment report notes the average weekly hours paid to workers in the hospitality industry, a chief employer on Guam, declined dramatically. Paid hours averaged 31.7 in June, down from 36.4 the same period last year. In percentage terms, hours worked declined 13% in hotels, 7% in retail and 4% for all private industry for the comparable period. Private total average weekly earnings were little changed, however, as higher hourly earnings offset the decline in hours worked.
As Guam’s hospital progresses towards accreditation, solvency will remain an issue as residents are likely to still find it hard to meet the high costs associated with medical care on Guam. Healthcare expenses showed an increase of 3.1 percent when compared to last year’s third quarter index.
While shoppers have by now noticed that cereal products, poultry, and fish and seafood have increased by 3.6, 10.3, and 22.9 percent from one year ago, the index on beef, pork, eggs, dairy products, and fresh fruits actually reflect some relief with drops of 9.0, 11.3, 8.4, and 0.8 percent when compared to the same period in 2008.
Education was a bright spot in the report as communication, educational books and supplies, and computers all showed some easing of inflation, led by computers with a price drop of nearly 18 percent largely due to manufacturers cutting costs in line with conservative spending habits as a result of the financial meltdown of word stock markets.
Other areas that show inflationary creep in the Bureau statistics include tuition and other school fees, and telephone services which rose mildly at less than one half of 1 percent.
Monday, August 10, 2009
An Independent Guam
EGuam on its own
Monday, 10 August 2009 00:31 Letter to the Editor .
THIS is the picture of an independent Guam that I have in my mind. The United States keeps Anderson Air Force Base here simply as a military outpost in the Pacific and as our security. All other lands in military inventories are reverted to GovGuam, being distributed and used at our discretion.
American dollar remains to be our currency, like other independent Pacific nations that have this form of security and currency arrangement. With a stable government and currency comes investors’ confidence. All existing free enterprises continue. All jobs are retained. Mortgages and bills get paid. Now we invest in our selves.
We can take advantage of our proximity to the ocean. We can invest and develop the following initiatives:
A storage facility to accommodate fish harvests from the entire Micronesian region;
A fish cannery;
A transit point for distribution of Micronesian fish to the world;
A fueling and replenishment point for the fishing fleets. In addition to fueling, vessels can replenish supplies such as food, fishing inventory and labor.
Because of our proximity to Micronesia and Asia, these ideas are feasible and will stimulate the development of more businesses. Thousands of new jobs will be created and new monies will be infused into our economy. With new monies we will live better.
Our hospital, utilities, roads, trash and other services will be better maintained. And the domino effect will touch individual lives.
I am not talking about going back to coconut huts and grass skirts. We can leave those for the tourists to marvel at. I like my computer, cell phone, the mall, movies and my car, but I also feel that it is our destiny as a people to decide our fate, for better or worse. It is our birth right.
Caged things must be set free at some point. As with our children, even with all our investment, time and love, there comes the time when we have to let them seek their own path.
Ben “Sinahi” del Rosario
Mangilao
Monday, 10 August 2009 00:31 Letter to the Editor .
THIS is the picture of an independent Guam that I have in my mind. The United States keeps Anderson Air Force Base here simply as a military outpost in the Pacific and as our security. All other lands in military inventories are reverted to GovGuam, being distributed and used at our discretion.
American dollar remains to be our currency, like other independent Pacific nations that have this form of security and currency arrangement. With a stable government and currency comes investors’ confidence. All existing free enterprises continue. All jobs are retained. Mortgages and bills get paid. Now we invest in our selves.
We can take advantage of our proximity to the ocean. We can invest and develop the following initiatives:
A storage facility to accommodate fish harvests from the entire Micronesian region;
A fish cannery;
A transit point for distribution of Micronesian fish to the world;
A fueling and replenishment point for the fishing fleets. In addition to fueling, vessels can replenish supplies such as food, fishing inventory and labor.
Because of our proximity to Micronesia and Asia, these ideas are feasible and will stimulate the development of more businesses. Thousands of new jobs will be created and new monies will be infused into our economy. With new monies we will live better.
Our hospital, utilities, roads, trash and other services will be better maintained. And the domino effect will touch individual lives.
I am not talking about going back to coconut huts and grass skirts. We can leave those for the tourists to marvel at. I like my computer, cell phone, the mall, movies and my car, but I also feel that it is our destiny as a people to decide our fate, for better or worse. It is our birth right.
Caged things must be set free at some point. As with our children, even with all our investment, time and love, there comes the time when we have to let them seek their own path.
Ben “Sinahi” del Rosario
Mangilao
Sunday, July 12, 2009
What's Behind Abercrombie's Ammendment?
What’s behind the Abercrombie amendment?
Sunday, 12 July 2009 23:49 by Jayne Flores
The Marianas Variety
It’s a trade off: the long-awaited payment of war reparations to our dwindling number of survivors of the Japanese occupation, for a Hawaii-based wage rate for the buildup.
That seems to be the most logical reason behind Hawaii Rep. Neil Abercrombie’s two additional amendments to the National Defense Authorization Act for Fiscal Year 2010.
Abercrombie is running for governor, and if he can boost his state’s struggling economy by giving construction workers jobs on Guam that pay just as much as if they were working in Hawaii, it would be a large feather in his political cap. It’s a cap that, according to a candidate watchdog web site, has been paid for with contributions from the likes of Lockheed Martin, BAE Systems, and 21st Century Systems, all military contractor heavyweights.
On the other side, we’re getting to the point that if we don’t settle this war claims issue soon, there won’t be any WWII survivors left to receive the money.
Abercrombie’s first amendment requires that Hawaii construction wage rates, which are approximately double what construction workers on Guam are paid, will apply to all build-up related projects funded with money specifically earmarked for the build-up.
The second amendments says that not more than 30 percent of the total hours worked per month on a buildup construction project may be performed by foreign workers, or workers holding temporary work visas.
So we’ve now got requirements that the Defense Department has to pay everyone who works on a buildup project those high Hawaii wage rates, and on each of the jobs, 70 percent of the work hours have to be worked by U.S. workers.
Obviously, Abercrombie is trying to prevent jobs going to foreign workers while construction workers in his state and other states are out of work. His amendment makes perfect sense if you’re a senator watching unemployment rates skyrocket in your state, or watching your state hand out vouchers for payment because it is broke.
This amendment seems to strike fear in the hearts of contractors on Guam and the overall Guam business community. They’ve been collectively saying that doubling wage rates for these projects might kill the buildup, or cause a domino effect and increase the cost of living on the island. But would it?
The large contractors that will be paying these higher rates already pay similar rates in many states. According to www.payscale.com, journeyman electricians make an average of $25.44 an hour in the states. Carpenters make from $22.33 to $32.43, depending on where they work. So these contractors’ bids will reflect the Hawaii-based wage rates accordingly. It’s the Department of Defense that will have to fork out the big bucks.
Local contractors are not getting these jobs – that’s the word through the grapevine. They may get subcontracts, but they can work the higher wages into their subcontract bids. So the local contractors won’t actually have to pay these rates, because Abercrombie’s amendment is specific to the buildup, not to the prevailing wage rate on Guam.
What will happen, though, is that the buildup will create two classes of H-2 workers and local workers, those who work on federal projects and are paid the higher wages, and those who work on local projects and are paid Guam’s prevailing construction wage rates. This could cause some animosity among workers within a company, especially among foreign workers who might fight over who gets to work the 30 percent hours on federal projects.
The higher wage rate might actually work in Guam’s favor. Although stateside workers will probably send home a significant portion of their paychecks if they don’t move their families out here, rest assured, they’ll frequent local restaurants and other establishments, and spend more of their money here than would foreign workers, who as a general rule send home most of their paychecks.
The defense budget bill, including the war claims and Abercrombie amendments, is now in the U.S. Senate. What senators are going to have to decide is whether they want to increase the cost of the buildup in order to put more Americans back to work, or scratch the whole bill and start over. Or, they could take out Abercrombie’s amendments, or the war claims amendment, or both.
At this point, anything can happen. But having to deal with the higher buildup wages won’t be as devastating as will having the war claims legislation slip through our fingers once again.
If this is the deal – we should take it.
Sunday, 12 July 2009 23:49 by Jayne Flores
The Marianas Variety
It’s a trade off: the long-awaited payment of war reparations to our dwindling number of survivors of the Japanese occupation, for a Hawaii-based wage rate for the buildup.
That seems to be the most logical reason behind Hawaii Rep. Neil Abercrombie’s two additional amendments to the National Defense Authorization Act for Fiscal Year 2010.
Abercrombie is running for governor, and if he can boost his state’s struggling economy by giving construction workers jobs on Guam that pay just as much as if they were working in Hawaii, it would be a large feather in his political cap. It’s a cap that, according to a candidate watchdog web site, has been paid for with contributions from the likes of Lockheed Martin, BAE Systems, and 21st Century Systems, all military contractor heavyweights.
On the other side, we’re getting to the point that if we don’t settle this war claims issue soon, there won’t be any WWII survivors left to receive the money.
Abercrombie’s first amendment requires that Hawaii construction wage rates, which are approximately double what construction workers on Guam are paid, will apply to all build-up related projects funded with money specifically earmarked for the build-up.
The second amendments says that not more than 30 percent of the total hours worked per month on a buildup construction project may be performed by foreign workers, or workers holding temporary work visas.
So we’ve now got requirements that the Defense Department has to pay everyone who works on a buildup project those high Hawaii wage rates, and on each of the jobs, 70 percent of the work hours have to be worked by U.S. workers.
Obviously, Abercrombie is trying to prevent jobs going to foreign workers while construction workers in his state and other states are out of work. His amendment makes perfect sense if you’re a senator watching unemployment rates skyrocket in your state, or watching your state hand out vouchers for payment because it is broke.
This amendment seems to strike fear in the hearts of contractors on Guam and the overall Guam business community. They’ve been collectively saying that doubling wage rates for these projects might kill the buildup, or cause a domino effect and increase the cost of living on the island. But would it?
The large contractors that will be paying these higher rates already pay similar rates in many states. According to www.payscale.com, journeyman electricians make an average of $25.44 an hour in the states. Carpenters make from $22.33 to $32.43, depending on where they work. So these contractors’ bids will reflect the Hawaii-based wage rates accordingly. It’s the Department of Defense that will have to fork out the big bucks.
Local contractors are not getting these jobs – that’s the word through the grapevine. They may get subcontracts, but they can work the higher wages into their subcontract bids. So the local contractors won’t actually have to pay these rates, because Abercrombie’s amendment is specific to the buildup, not to the prevailing wage rate on Guam.
What will happen, though, is that the buildup will create two classes of H-2 workers and local workers, those who work on federal projects and are paid the higher wages, and those who work on local projects and are paid Guam’s prevailing construction wage rates. This could cause some animosity among workers within a company, especially among foreign workers who might fight over who gets to work the 30 percent hours on federal projects.
The higher wage rate might actually work in Guam’s favor. Although stateside workers will probably send home a significant portion of their paychecks if they don’t move their families out here, rest assured, they’ll frequent local restaurants and other establishments, and spend more of their money here than would foreign workers, who as a general rule send home most of their paychecks.
The defense budget bill, including the war claims and Abercrombie amendments, is now in the U.S. Senate. What senators are going to have to decide is whether they want to increase the cost of the buildup in order to put more Americans back to work, or scratch the whole bill and start over. Or, they could take out Abercrombie’s amendments, or the war claims amendment, or both.
At this point, anything can happen. But having to deal with the higher buildup wages won’t be as devastating as will having the war claims legislation slip through our fingers once again.
If this is the deal – we should take it.
Thursday, April 02, 2009
Marianas Buildup, Not Guam Buildup
'Marianas buildup, not Guam military buildup'
By Haidee V. Eugenio
Reporter
Saipan Tribune
April 3, 2009
Guam Lt. Gov. Michael Cruz yesterday said he and Gov. Felix P. Camacho propose to rename what has long been known as the Guam military buildup to “Marianas buildup,” and both look to forming a regional economic task force to tap a projected $2 billion to $4 billion in annual defense-related contracts associated with the influx of military personnel on Guam.
Cruz was the keynote speaker at yesterday's opening of the two-day 2009 Economic Restoration Summit, which drew over a hundred businessmen and government officials from the CNMI and Guam.
He talked about the growing need for a regional approach to the economic challenges faced by the Marianas.
“I firmly believe that Guam's strategic value would diminish if not for the assets of the CNMI. The complexity of current military operations and the security requirements which accompany them cannot be resolved by one island alone,” Cruz told participants in the summit held at the Fiesta Resort and Spa in Garapan.
Jobs
In his remarks, Cruz said he and Camacho propose a regional program in which the CNMI government will share experts with Guam for up to four years, with taxes paid to the Commonwealth to ensure critical government services.
Cruz said the next four years will increase Guam's need for tax enforcement officers, building inspectors, environmental health inspectors, policy specialists and public safety officers.
Although Guam will train its people to meet the increased demand, the number of needed positions requires that it finds other sources such as the CNMI.
“If the CNMI has an excess of these officials, we believe our governments can engage in a program of shared expertise during the peak years of the buildup,” he said.
The program, according to Cruz, would allow the region to share in Guam's future prosperity and by giving jobs to people.
Opportunities
CNMI Gov. Benigno R. Fitial, in his welcoming remarks, recognized the military buildup and the federal stimulus funding as opportunities for the islands.
The summit identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI, and brought together experts, entrepreneurs, lawmakers and other policymakers to help develop these industries.
Results of the summit will be presented at the U.S. Department of the Interior-sponsored Business Opportunities in the Islands Conference in Hawaii from April 6 to 8.
In an interview, Cruz recognized the CNMI's growing interest in agriculture and aquaculture which on Guam, “unfortunately, is sort of a dying industry because of multiple concerns, and the increasing price of land.”
Reducing the cost of shipping goods from the CNMI to Guam, he said, is a key area of cooperation.
“Gov. Felix Camacho has been very strong about ensuring the region benefits from the prosperity that Guam is going to see. A healthy region is a healthy Guam, and a healthy Guam should mean a healthy region,” Cruz said.
He added that the Marianas buildup recognizes the various impacts the military relocation will have on the islands, which need to work collaboratively to share in the success coming their way.
“This region must deal with a higher military profile, a large population influx, and a severe lack of skilled labor. If we do not meet our challenges together, we will be divided by them.” he added.
To implement this concept, Cruz and Camacho propose the creation of a regional economic task force that will use the Marianas buildup as the initial engine to address the region's economic concerns.
The proposed economic task force is seen to explore continued collaboration on the guest worker program to ensure new federal regulations address the region's shared concerns.
Accompanying Cruz on Saipan for the summit was his chief of staff, Carlotta De Leon Guerrero, a former TV anchor on Saipan.
Difficulties
Businesses in the CNMI and Guam experience significant difficulty identifying federal contracts and obtaining them, according to Cruz.
While companies with Guam addresses transacted approximately $250 million with the federal government last year, only less than 10 percent of the companies in Guam actually performed the work, he said.
“With a projected $2 billion to $4 billion per year in defense-related contracts associated with the buildup, companies throughout Guam, the CNMI and Micronesia must participate in these good times, especially after we survived the hard times,” said Cruz.
Over the next four years, Guam's population is expected to grow by 28 to 30 percent-the equivalent of some 22 years of population growth occurring in less than a third of that time.
Cruz said the government of Guam is spearheading efforts to prepare for the buildup, but these efforts are not for the military alone.
A dramatic increase in the population requires an upgrade to public services such as health, education, public safety, cultural preservation and economic development.
No easy solutions
Fitial, in his welcoming remarks at the summit, said it's not an easy task to develop promising new industries because of a dramatic change in the economic environment.
For example, the CNMI no longer holds its traditional competitive advantages such as local control of minimum wage rates, local control of immigration, and duty-free access to U.S. markets via Headnote 3(a) provision.
There may be no easy solutions, he said, but the Economic Restoration Summit represents a “good, healthy starting point.”
Fitial thanked former Supreme Court chief justice Jose S. Dela Cruz and others for publicly calling for an economic summit to discuss the CNMI's problems. He also thanked Commerce Secretary Michael Ada for organizing the summit along with other public and private sector agencies such as CDA, Northern Marianas College, and IT&E.
The well organized summit, co-sponsored by the Department of Commerce and the Commonwealth Development Authority, identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI.
Commerce Secretary Ada presented the Commonwealth Economic Development Strategy, which serves as a master plan for the CNMI's economic development. Among the priority projects involve the Commonwealth Utilities Corp., inter-island super ferry, alternative energy, and housing. Ada also provided an update on CNMI efforts to tap into the American Recovery and Reinvestment Act, or the federal stimulus package.
Dr. Arthur L. Smith, president of consulting firm Management Analysis Inc., said with half-a-billion dollar in proposed projects, the cost of which is more than three times the CNMI's annual budget, there is increased opportunity for public-private partnership.
He cited as examples the CUC power plant 1, Garapan Elementary School, Garapan redevelopment, Pinatang Beach Park, alternative energy and international sports complex as areas in which public-private partnership can benefit the CNMI.
Sergio Loya, project manager of MAI, presented the results of discussions on aquaculture, agriculture and edu-tourism. Each was followed by presentations of experts and entrepreneurs, including Dr. Shaun Moss of the Oceanic Institute who talked about aquaculture; businessman Tony Pellegrino, who talked about agriculture; and Wayne Pangelinan, who talked about edu-tourism.
The summit was broadcast through video teleconference to Rota and Tinian participants, who were also able to ask the presenters questions.
http://www.saipantribune.com/newsstory.aspx?cat=1&newsID=89102
By Haidee V. Eugenio
Reporter
Saipan Tribune
April 3, 2009
Guam Lt. Gov. Michael Cruz yesterday said he and Gov. Felix P. Camacho propose to rename what has long been known as the Guam military buildup to “Marianas buildup,” and both look to forming a regional economic task force to tap a projected $2 billion to $4 billion in annual defense-related contracts associated with the influx of military personnel on Guam.
Cruz was the keynote speaker at yesterday's opening of the two-day 2009 Economic Restoration Summit, which drew over a hundred businessmen and government officials from the CNMI and Guam.
He talked about the growing need for a regional approach to the economic challenges faced by the Marianas.
“I firmly believe that Guam's strategic value would diminish if not for the assets of the CNMI. The complexity of current military operations and the security requirements which accompany them cannot be resolved by one island alone,” Cruz told participants in the summit held at the Fiesta Resort and Spa in Garapan.
Jobs
In his remarks, Cruz said he and Camacho propose a regional program in which the CNMI government will share experts with Guam for up to four years, with taxes paid to the Commonwealth to ensure critical government services.
Cruz said the next four years will increase Guam's need for tax enforcement officers, building inspectors, environmental health inspectors, policy specialists and public safety officers.
Although Guam will train its people to meet the increased demand, the number of needed positions requires that it finds other sources such as the CNMI.
“If the CNMI has an excess of these officials, we believe our governments can engage in a program of shared expertise during the peak years of the buildup,” he said.
The program, according to Cruz, would allow the region to share in Guam's future prosperity and by giving jobs to people.
Opportunities
CNMI Gov. Benigno R. Fitial, in his welcoming remarks, recognized the military buildup and the federal stimulus funding as opportunities for the islands.
The summit identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI, and brought together experts, entrepreneurs, lawmakers and other policymakers to help develop these industries.
Results of the summit will be presented at the U.S. Department of the Interior-sponsored Business Opportunities in the Islands Conference in Hawaii from April 6 to 8.
In an interview, Cruz recognized the CNMI's growing interest in agriculture and aquaculture which on Guam, “unfortunately, is sort of a dying industry because of multiple concerns, and the increasing price of land.”
Reducing the cost of shipping goods from the CNMI to Guam, he said, is a key area of cooperation.
“Gov. Felix Camacho has been very strong about ensuring the region benefits from the prosperity that Guam is going to see. A healthy region is a healthy Guam, and a healthy Guam should mean a healthy region,” Cruz said.
He added that the Marianas buildup recognizes the various impacts the military relocation will have on the islands, which need to work collaboratively to share in the success coming their way.
“This region must deal with a higher military profile, a large population influx, and a severe lack of skilled labor. If we do not meet our challenges together, we will be divided by them.” he added.
To implement this concept, Cruz and Camacho propose the creation of a regional economic task force that will use the Marianas buildup as the initial engine to address the region's economic concerns.
The proposed economic task force is seen to explore continued collaboration on the guest worker program to ensure new federal regulations address the region's shared concerns.
Accompanying Cruz on Saipan for the summit was his chief of staff, Carlotta De Leon Guerrero, a former TV anchor on Saipan.
Difficulties
Businesses in the CNMI and Guam experience significant difficulty identifying federal contracts and obtaining them, according to Cruz.
While companies with Guam addresses transacted approximately $250 million with the federal government last year, only less than 10 percent of the companies in Guam actually performed the work, he said.
“With a projected $2 billion to $4 billion per year in defense-related contracts associated with the buildup, companies throughout Guam, the CNMI and Micronesia must participate in these good times, especially after we survived the hard times,” said Cruz.
Over the next four years, Guam's population is expected to grow by 28 to 30 percent-the equivalent of some 22 years of population growth occurring in less than a third of that time.
Cruz said the government of Guam is spearheading efforts to prepare for the buildup, but these efforts are not for the military alone.
A dramatic increase in the population requires an upgrade to public services such as health, education, public safety, cultural preservation and economic development.
No easy solutions
Fitial, in his welcoming remarks at the summit, said it's not an easy task to develop promising new industries because of a dramatic change in the economic environment.
For example, the CNMI no longer holds its traditional competitive advantages such as local control of minimum wage rates, local control of immigration, and duty-free access to U.S. markets via Headnote 3(a) provision.
There may be no easy solutions, he said, but the Economic Restoration Summit represents a “good, healthy starting point.”
Fitial thanked former Supreme Court chief justice Jose S. Dela Cruz and others for publicly calling for an economic summit to discuss the CNMI's problems. He also thanked Commerce Secretary Michael Ada for organizing the summit along with other public and private sector agencies such as CDA, Northern Marianas College, and IT&E.
The well organized summit, co-sponsored by the Department of Commerce and the Commonwealth Development Authority, identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI.
Commerce Secretary Ada presented the Commonwealth Economic Development Strategy, which serves as a master plan for the CNMI's economic development. Among the priority projects involve the Commonwealth Utilities Corp., inter-island super ferry, alternative energy, and housing. Ada also provided an update on CNMI efforts to tap into the American Recovery and Reinvestment Act, or the federal stimulus package.
Dr. Arthur L. Smith, president of consulting firm Management Analysis Inc., said with half-a-billion dollar in proposed projects, the cost of which is more than three times the CNMI's annual budget, there is increased opportunity for public-private partnership.
He cited as examples the CUC power plant 1, Garapan Elementary School, Garapan redevelopment, Pinatang Beach Park, alternative energy and international sports complex as areas in which public-private partnership can benefit the CNMI.
Sergio Loya, project manager of MAI, presented the results of discussions on aquaculture, agriculture and edu-tourism. Each was followed by presentations of experts and entrepreneurs, including Dr. Shaun Moss of the Oceanic Institute who talked about aquaculture; businessman Tony Pellegrino, who talked about agriculture; and Wayne Pangelinan, who talked about edu-tourism.
The summit was broadcast through video teleconference to Rota and Tinian participants, who were also able to ask the presenters questions.
http://www.saipantribune.com/newsstory.aspx?cat=1&newsID=89102
Tuesday, February 10, 2009
Free Art Friday
Finders, keepers
Tuesday, 10 February 2009 22:30
By Jennifer Gesick
Variety News Staff
STARTING Friday until the end of the month, you can own a piece of art-- for free. Hence Free Art Friday, a movement that started in Dublin, Ireland and has been adopted by Guam artists.
Free Art Friday is a simple concept where artists create a painting, sketch, sculpture or installation and leave it in public places or on the street. The artwork can be picked up by anyone who wants it, and finders are invited to email the artist.
For the artist, it gives them a chance to create work uninhibited by the requirements of commerce, because art is so often attached to a need by the artist to “make a living” and it is affected by gallery and dealer issues.
All artists whether producing static or removable art want to promote discussion.
“In Guam it always rains so we are going to put the art inside buildings,” said Filamore Palomo Alcon, owner/curator/artist of The Guam Gallery of Art in Chamorro Village and founder of the Chamorro Artist Association.
Free Art Friday will kick off this Friday at 6:30 p.m. at the Guam Gallery of Art in Chamorro Village. At least 14 artists, including Alcon, have confirmed their participation in the project. Other participating artists and photographers are Monica Baza, Viktoria Sayrs, Mar-vic Cagurangan, Moe Cotton, Jason Palmertree, Tessa Borja, Rolly Zepeda, Tina Zepeda, Kristin Zepeda, Jacqueline Hernandez, Tim Hanley, Al Lizama and Michael Lujan Bevaqua.
Alcon said there were some artists who are against the Free Art Friday concept. “One artist said he will not participate in this event because he believes it is devaluing his art.”
He disagrees: “It’s not devaluing art if anything it’s the opposite. It is a good way for people to promote their art, and what is wrong with giving something away when we give away lots of art to charities. Everything good that is given away comes back to you two fold,” Alcon said.
Tuesday, 10 February 2009 22:30
By Jennifer Gesick
Variety News Staff
STARTING Friday until the end of the month, you can own a piece of art-- for free. Hence Free Art Friday, a movement that started in Dublin, Ireland and has been adopted by Guam artists.
Free Art Friday is a simple concept where artists create a painting, sketch, sculpture or installation and leave it in public places or on the street. The artwork can be picked up by anyone who wants it, and finders are invited to email the artist.
For the artist, it gives them a chance to create work uninhibited by the requirements of commerce, because art is so often attached to a need by the artist to “make a living” and it is affected by gallery and dealer issues.
All artists whether producing static or removable art want to promote discussion.
“In Guam it always rains so we are going to put the art inside buildings,” said Filamore Palomo Alcon, owner/curator/artist of The Guam Gallery of Art in Chamorro Village and founder of the Chamorro Artist Association.
Free Art Friday will kick off this Friday at 6:30 p.m. at the Guam Gallery of Art in Chamorro Village. At least 14 artists, including Alcon, have confirmed their participation in the project. Other participating artists and photographers are Monica Baza, Viktoria Sayrs, Mar-vic Cagurangan, Moe Cotton, Jason Palmertree, Tessa Borja, Rolly Zepeda, Tina Zepeda, Kristin Zepeda, Jacqueline Hernandez, Tim Hanley, Al Lizama and Michael Lujan Bevaqua.
Alcon said there were some artists who are against the Free Art Friday concept. “One artist said he will not participate in this event because he believes it is devaluing his art.”
He disagrees: “It’s not devaluing art if anything it’s the opposite. It is a good way for people to promote their art, and what is wrong with giving something away when we give away lots of art to charities. Everything good that is given away comes back to you two fold,” Alcon said.
Tuesday, January 06, 2009
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.
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.
Monday, October 20, 2008
South Korea Economic Woes Affect Guam
Investment slides: South Korea economic woes affect Guam
By Steve Limtiaco
Pacific Daily News
October 21, 2008
The South Korean economy has been struggling -- the value of the Korean won compared to the U.S. dollar has dropped 30 percent this year and the country's main stock index has dropped 38 percent.
Those struggles have had an effect here, where Korean investment is important to real estate development and Korean visitors represent the second largest tourism market.
For Guam residents, Korea's troubles and the pending military buildup could make it more expensive to rent or to buy a home. That's because the island needs thousands of new homes to accommodate the buildup, and foreign investment to build them.
The decline in the won's value also has put a stop to what had been steady gains in Korean tourist arrivals, according to the Guam Visitors Bureau.
According to Pacific Daily News files, Guam needs to build about 5,573 units between now and 2013, or about 1,115 new units per year. That's in addition to homes the military will build for its personnel and their dependents.
By 2014, the military plans to transfer 8,000 U.S. Marines, and their dependents, from Okinawa to a new base in Dededo, increasing the island's population by about 42,000, and creating a housing demand. There also are other projects to expand the military's presence here at the Navy and Air Force installations, and the Army plans to build a ballistic missile defense facility.
The overall cost of the military buildup is expected to be about $20 billion.
Guam relies heavily on foreign investment to develop island real estate.
"The Korean market was probably one of the most importance sources of foreign investment funds in 2007," said Nick Captain, president of the Captain Real Estate Group.
He said the slowdown in the Korean economy has caused an "almost near elimination of foreign investment coming from Korea now."
Koreans in 2007 invested about $1.2 billion in foreign real estate, but are on pace to invest only $600 million this year, according to statistics gathered by Captain.
Captain said the decline in Korean investment will affect some large development projects on Guam as well as the market for land. He said a number of Korean-funded real estate projects here, "have taken a back seat or put on indefinite hold." Captain said he couldn't comment on the specific projects.
Captain last month told the Rotary Club of Tumon Bay that the sale of high-end homes -- those costing $500,000 or more -- has suffered because developers were counting on Koreans to buy them. Only five of those homes sold during the first half of this year, he said, with dozens more on the market but unsold.
Tourism
Tourist arrivals from Korea had been growing during the past several years, by as much as 5.5 percent per year, said Gerald Perez, general manager of the Guam Visitors Bureau.
Arrivals are now down about 5 percent for the year.
"I can say for sure that the Korean economy, particularly with respect to the won versus the dollar, has played a big impact," Perez said.
The decline in the value of the won means Korean visitors now get less value for their money, he said.
"The problem is the Korean won just within the last month was 950 (to the dollar). Now it's running 1,450 (to the dollar)," Perez said.
Despite the overall decline, Perez said this should be a good month for Korean tourist arrivals -- about 22 percent higher than last October -- because several "incentive" trips are scheduled to happen this month. Those are trips or seminars given as performance rewards.
By Steve Limtiaco
Pacific Daily News
October 21, 2008
The South Korean economy has been struggling -- the value of the Korean won compared to the U.S. dollar has dropped 30 percent this year and the country's main stock index has dropped 38 percent.
Those struggles have had an effect here, where Korean investment is important to real estate development and Korean visitors represent the second largest tourism market.
For Guam residents, Korea's troubles and the pending military buildup could make it more expensive to rent or to buy a home. That's because the island needs thousands of new homes to accommodate the buildup, and foreign investment to build them.
The decline in the won's value also has put a stop to what had been steady gains in Korean tourist arrivals, according to the Guam Visitors Bureau.
According to Pacific Daily News files, Guam needs to build about 5,573 units between now and 2013, or about 1,115 new units per year. That's in addition to homes the military will build for its personnel and their dependents.
By 2014, the military plans to transfer 8,000 U.S. Marines, and their dependents, from Okinawa to a new base in Dededo, increasing the island's population by about 42,000, and creating a housing demand. There also are other projects to expand the military's presence here at the Navy and Air Force installations, and the Army plans to build a ballistic missile defense facility.
The overall cost of the military buildup is expected to be about $20 billion.
Guam relies heavily on foreign investment to develop island real estate.
"The Korean market was probably one of the most importance sources of foreign investment funds in 2007," said Nick Captain, president of the Captain Real Estate Group.
He said the slowdown in the Korean economy has caused an "almost near elimination of foreign investment coming from Korea now."
Koreans in 2007 invested about $1.2 billion in foreign real estate, but are on pace to invest only $600 million this year, according to statistics gathered by Captain.
Captain said the decline in Korean investment will affect some large development projects on Guam as well as the market for land. He said a number of Korean-funded real estate projects here, "have taken a back seat or put on indefinite hold." Captain said he couldn't comment on the specific projects.
Captain last month told the Rotary Club of Tumon Bay that the sale of high-end homes -- those costing $500,000 or more -- has suffered because developers were counting on Koreans to buy them. Only five of those homes sold during the first half of this year, he said, with dozens more on the market but unsold.
Tourism
Tourist arrivals from Korea had been growing during the past several years, by as much as 5.5 percent per year, said Gerald Perez, general manager of the Guam Visitors Bureau.
Arrivals are now down about 5 percent for the year.
"I can say for sure that the Korean economy, particularly with respect to the won versus the dollar, has played a big impact," Perez said.
The decline in the value of the won means Korean visitors now get less value for their money, he said.
"The problem is the Korean won just within the last month was 950 (to the dollar). Now it's running 1,450 (to the dollar)," Perez said.
Despite the overall decline, Perez said this should be a good month for Korean tourist arrivals -- about 22 percent higher than last October -- because several "incentive" trips are scheduled to happen this month. Those are trips or seminars given as performance rewards.
Sunday, September 14, 2008
20 Years of Growth in 5
20 years of growth in 5:
Guam population will add 42,000 by 2013
By Gaynor Dumat-ol Daleno
Pacific Sunday News
September 14, 2008
During rush-hour traffic in Dededo, Tamuning and Tumon, cars often move at barely a crawl in bottleneck areas...
That's Guam today, with its population estimated at close to 173,000.
Add more than 42,000 people to that figure five years from now, according to data from a draft transportation plan.
"Guam will experience 20 years of population growth in just five years with the military buildup," the 2030 Guam Transportation Plan states.
The plan, which takes into account the U.S. military buildup, outlines massive projects that include widening and building new roads for civilian as well as military needs. The plan includes a mass transit system that would work for a lot more people than its current small pool of riders.
The military buildup has been projected to cost as much as $15 billion, and would include: relocating thousands of U.S. Marines and their families from Okinawa; expanding the Navy and Air Force bases; and building an Army ballistic missile defense facility.
By 2015, when the military buildup is expected to be complete, Guam's population will top 231,000, according to the report. Without the military buildup, it would take Guam at least two decades to reach that level of population growth.
The Department of Public Works plan proposes seeking a combination of funds from the Department of Defense, the Federal Highway Administration and other pockets within the federal government.
Some members of the community have voiced a mix of optimism and concern regarding the growth.
Preparation
John M. Lee, who owns a Shell service station along Route 3, in the general area of the preferred site for a Marine base, said he welcomes the anticipated growth.
"Wow," was Lee's initial comment when he heard of the population growth projection.
A larger population means more opportunities for entrepreneurs such as Lee, who's also opening popular Japanese pastry shop Beard Papa's at Guam Premier Outlets.
But, at the same time, Lee would like to see Guam -- as a community -- prepare better to handle the projected growth. He offered the analogy of would-be parents who must learn parenting skills as best as they can before having children.
"If we are going to expect that," he said of the population surge, "we must do our homework."
And that homework, he said, includes establishing social safety nets and a system that makes sure quality of life for those who already call Guam home doesn't suffer.
Potential strain
Economist Joseph Bradley said the bottom line is that, yes, Guam can handle the projected growth.
"After all, we did so during World War II, and again during the Vietnam War," said Bradley, a senior vice president at the Bank of Guam.
Defense Department representatives have called the proposed buildup the biggest military move in Guam since World War II.
The host community, Bradley said, won't like the potential strain of that growth -- crowding, traffic congestion, sewer overflows and water shortages.
"Unless we make some rather enormous moves now, today -- which we should have made last year, or the year before -- if we don't do whatever we can in the civilian community to prepare for what we know is coming, we will come nowhere close to optimizing the benefits that we might still receive," Bradley said.
"It is time to make the tough decisions and take the aggressive actions that are needed for the prospective growth and prosperity of Guam. Given the global economic situation, we can't afford to wait," Bradley said.
Housing
Part of the challenge when 20 years of growth is compressed into five years is whether there will be enough homes for all the newcomers.
Between 1990 and 2000, Guam has seen a population growth rate of 14 percent.
In five years, if the plan's projection is correct, the number of people on Guam will surge about 24 percent -- that means one additional person for every four people who currently live on Guam.
There's no reason to doubt the population growth projection in the transportation plan, states SMS Research and Marketing Inc., a Honolulu research partner for PCR Environmental Inc. PCR has been selected to conduct a housing study for the government of Guam.
Accommodating a population of 215,000 by 2013 would require housing construction rates on Guam to increase by 40 percent to 50 percent, according to SMS.
"If ... the 215,000 projection is used, and there is no change in the housing production rate, Guam would need an additional 5,573 new units, or almost 1,115 units per year, between 2008 and 2013," SMS officials said.
Contrasting markets
The military buildup puts Guam's economic outlook in stark contrast with the gloom engulfing the housing market in the U.S. mainland.
In most of the nation, the number of new homes being built has fallen to lows not seen in decades, while home purchases have seen double-digit drops, according to wire news service reports.
In contrast, Guam faces an overall construction boom that's in the billions of dollars for both private-sector and military projects.
Based on the 2015 population projection, Guam would need about 7,500 more civilian housing units, said Nick Captain, president of Captain Real Estate. His company tracks local housing data.
The military also is expected to build houses within the proposed Marine base in the Finegayan area on Route 3. About 8,000 Marines and their 9,000 dependents are expected to move to Guam.
The bulk of the military buildup construction is expected to start in 2010 -- if the military receives all the environmental clearances it needs by early next year.
During the buildup's construction phase, 12,000 to as many as 20,000 additional construction workers are expected to be needed on Guam, and their count is included in the 2015 population projection.
The military, in an industry forum on Guam earlier this year, floated the idea of Olympic-village-style housing for the temporary workers. The worker housing could be converted into low-cost housing for Guam residents when the projects are completed, according to initial discussions between the local government and Defense Department representatives.
Captain emphasized that Guam is in a unique position of being perhaps the only U.S. location with guaranteed and significant major boost in population and economic growth within the next several years.
"Guam is looking at a phenomenal period of population and economic growth over the next five years, and there will be good and bad accompanying that growth," Captain said. "It is a phenomenal growth."
Guam currently has about 26,500 stand-alone housing units and approximately 5,000 condominium units, according to Captain's estimates. The vacancy rate for the stand-alone houses, or single-family dwellings, is around 10 percent at this time, he estimated.
"If we play our cards right, and the government makes good decisions, the quality of life will increase," Captain said.
Developing social safety nets for local residents is key to helping Guam residents as the island transforms into a much bigger community, Captain said.
Guam population will add 42,000 by 2013
By Gaynor Dumat-ol Daleno
Pacific Sunday News
September 14, 2008
During rush-hour traffic in Dededo, Tamuning and Tumon, cars often move at barely a crawl in bottleneck areas...
That's Guam today, with its population estimated at close to 173,000.
Add more than 42,000 people to that figure five years from now, according to data from a draft transportation plan.
"Guam will experience 20 years of population growth in just five years with the military buildup," the 2030 Guam Transportation Plan states.
The plan, which takes into account the U.S. military buildup, outlines massive projects that include widening and building new roads for civilian as well as military needs. The plan includes a mass transit system that would work for a lot more people than its current small pool of riders.
The military buildup has been projected to cost as much as $15 billion, and would include: relocating thousands of U.S. Marines and their families from Okinawa; expanding the Navy and Air Force bases; and building an Army ballistic missile defense facility.
By 2015, when the military buildup is expected to be complete, Guam's population will top 231,000, according to the report. Without the military buildup, it would take Guam at least two decades to reach that level of population growth.
The Department of Public Works plan proposes seeking a combination of funds from the Department of Defense, the Federal Highway Administration and other pockets within the federal government.
Some members of the community have voiced a mix of optimism and concern regarding the growth.
Preparation
John M. Lee, who owns a Shell service station along Route 3, in the general area of the preferred site for a Marine base, said he welcomes the anticipated growth.
"Wow," was Lee's initial comment when he heard of the population growth projection.
A larger population means more opportunities for entrepreneurs such as Lee, who's also opening popular Japanese pastry shop Beard Papa's at Guam Premier Outlets.
But, at the same time, Lee would like to see Guam -- as a community -- prepare better to handle the projected growth. He offered the analogy of would-be parents who must learn parenting skills as best as they can before having children.
"If we are going to expect that," he said of the population surge, "we must do our homework."
And that homework, he said, includes establishing social safety nets and a system that makes sure quality of life for those who already call Guam home doesn't suffer.
Potential strain
Economist Joseph Bradley said the bottom line is that, yes, Guam can handle the projected growth.
"After all, we did so during World War II, and again during the Vietnam War," said Bradley, a senior vice president at the Bank of Guam.
Defense Department representatives have called the proposed buildup the biggest military move in Guam since World War II.
The host community, Bradley said, won't like the potential strain of that growth -- crowding, traffic congestion, sewer overflows and water shortages.
"Unless we make some rather enormous moves now, today -- which we should have made last year, or the year before -- if we don't do whatever we can in the civilian community to prepare for what we know is coming, we will come nowhere close to optimizing the benefits that we might still receive," Bradley said.
"It is time to make the tough decisions and take the aggressive actions that are needed for the prospective growth and prosperity of Guam. Given the global economic situation, we can't afford to wait," Bradley said.
Housing
Part of the challenge when 20 years of growth is compressed into five years is whether there will be enough homes for all the newcomers.
Between 1990 and 2000, Guam has seen a population growth rate of 14 percent.
In five years, if the plan's projection is correct, the number of people on Guam will surge about 24 percent -- that means one additional person for every four people who currently live on Guam.
There's no reason to doubt the population growth projection in the transportation plan, states SMS Research and Marketing Inc., a Honolulu research partner for PCR Environmental Inc. PCR has been selected to conduct a housing study for the government of Guam.
Accommodating a population of 215,000 by 2013 would require housing construction rates on Guam to increase by 40 percent to 50 percent, according to SMS.
"If ... the 215,000 projection is used, and there is no change in the housing production rate, Guam would need an additional 5,573 new units, or almost 1,115 units per year, between 2008 and 2013," SMS officials said.
Contrasting markets
The military buildup puts Guam's economic outlook in stark contrast with the gloom engulfing the housing market in the U.S. mainland.
In most of the nation, the number of new homes being built has fallen to lows not seen in decades, while home purchases have seen double-digit drops, according to wire news service reports.
In contrast, Guam faces an overall construction boom that's in the billions of dollars for both private-sector and military projects.
Based on the 2015 population projection, Guam would need about 7,500 more civilian housing units, said Nick Captain, president of Captain Real Estate. His company tracks local housing data.
The military also is expected to build houses within the proposed Marine base in the Finegayan area on Route 3. About 8,000 Marines and their 9,000 dependents are expected to move to Guam.
The bulk of the military buildup construction is expected to start in 2010 -- if the military receives all the environmental clearances it needs by early next year.
During the buildup's construction phase, 12,000 to as many as 20,000 additional construction workers are expected to be needed on Guam, and their count is included in the 2015 population projection.
The military, in an industry forum on Guam earlier this year, floated the idea of Olympic-village-style housing for the temporary workers. The worker housing could be converted into low-cost housing for Guam residents when the projects are completed, according to initial discussions between the local government and Defense Department representatives.
Captain emphasized that Guam is in a unique position of being perhaps the only U.S. location with guaranteed and significant major boost in population and economic growth within the next several years.
"Guam is looking at a phenomenal period of population and economic growth over the next five years, and there will be good and bad accompanying that growth," Captain said. "It is a phenomenal growth."
Guam currently has about 26,500 stand-alone housing units and approximately 5,000 condominium units, according to Captain's estimates. The vacancy rate for the stand-alone houses, or single-family dwellings, is around 10 percent at this time, he estimated.
"If we play our cards right, and the government makes good decisions, the quality of life will increase," Captain said.
Developing social safety nets for local residents is key to helping Guam residents as the island transforms into a much bigger community, Captain said.
Monday, June 23, 2008
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."
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."
Friday, May 30, 2008
Military Makes Guam More Valuable to Continental
Military makes Continental's hub in Guam more valuable
By BILL HENSEL JR.
HoustonChronicle
May 30, 2008
The military is the reason Continental Airlines has a hub on Guam, and the military is the reason it could get a big boost soon.
Continental Micronesia, which began in 1968 as an offshoot of the carrier's troop transport business during the Vietnam War, is expected to benefit over the next few years as the U.S. territory plays a central role in the realignment of U.S. forces in the region.
Some 170,000 people live on the Pacific island now, but the population is expected to swell by nearly one-third to roughly 225,000 by 2014, according to David Cohen, former deputy assistant secretary of the Interior Department.
That will mean Guam will have to be better equipped to handle the influx, said Cohen, the federal representative to the U.S. Pacific community from 2005 to 2007.
"The military buildup is going to require that Guam's civilian infrastructure be significantly upgraded and significantly expanded," said Cohen, a lawyer who returned to private practice earlier this year.
"The public infrastructure on Guam is not adequate to meet the needs of the current population."
The buildup will require thousands of additional skilled workers, and that is expected to trigger more business for Continental Micronesia, a subsidiary of Houston-based Continental.
Known as Air Mike, the carrier has 30 departures a day to 23 cities across the Pacific Rim, Micronesia and Hawaii.
Continental Micronesia is the dominant carrier in the region and the largest private employer in Guam, with more than 1,500 workers.
Northwest Airlines, Japan Airlines, China Airlines and All Nippon Airways also serve the island.
The carrier already is seeing a "slight uptick" in travelers, said Mark Erwin, its president and chief executive.
He expects that to accelerate quickly, with an increase of about 12,000 more people than normal during the next year. The carrier now flies about 1.5 million people annually.
"We see this as a great growth opportunity for our fourth hub," he said.
Family ties
Guam Gov. Felix Camacho said during a recent news conference related to Air Mike's 40th anniversary on the island that the carrier, which has a payroll of more than $90 million, is part of Guam's family.
"We do recognize that the privilege of having Continental here on Guam establishes a main transportation hub," the governor said.
"It's not only people who come in and out of Guam. It's also the cargo that comes in daily that affects our lives."
Camacho cited heavy investment at Guam's A.B. Won Pat International Airport that Air Mike has helped attract, and the Federal Aviation Administration recently approved an additional runway.
The Pacific region for Continental, which includes Guam, saw growth of
12 percent during the first quarter of this year compared with last year, according to a recent regulatory filing by the airline. The region generated $257 million in revenue during the quarter, compared with $462 million for Latin America, $606 million for the trans-Atlantic region and $1.3 billion domestically.
Guam often isn't mentioned as a Continental hub alongside Houston, Cleveland and Newark, although that could change as the military shifts some 8,000 Marines — along with about 9,000 dependents — from Okinawa, Japan.
Military presence
The U.S. has long had a military presence in Guam, located on the other side of the International Date Line from the U.S mainland, spurring the slogan "Where America's Day Begins."
The entire island would fit inside Houston's Beltway 8, noted Walter Dias, staff vice president of sales and marketing. Dias has worked for Continental both in Houston and in Guam, where he has lived for the past 15 years.
The relocation of the Marines will cost more than $10 billion and will involve the construction of a new base, housing and improved utilities.
Plans call for billions more to be spent for the Army, Navy and Air Force. Japan will foot about 60 percent of the relocation bill, Cohen said.
The U.S. and Japan came to an agreement to realign U.S. forces and determined it would be in the best interest of both countries if troops were shifted from Okinawa, he said.
"Guam is strategically located but on U.S. soil, which gives the military greater room for maneuvering than is usually the case in foreign nations," Cohen said.
Erwin said Continental could have a Houston-to-Guam flight or Los Angeles-to-Guam flight within about three years. For now, flights from the U.S. mainland stop in Hawaii.
The carrier already has a big presence on Guam, with pilots and flight attendants and others living there, he noted.
Continental Micronesia takes its presence in Guam seriously and is an integral part of the community, Erwin said. That includes donating computers to schools and operating medical evacuation flights when a Guamanian suffers emergency health issues. Those flights are conducted using miles donated by frequent fliers.
Air Mike pilots and flight attendants also largely live there.
"So a lot of money stays on the island," he said.
In addition to the Marines, the buildup is expected to attract an influx of foreign workers, many from the Philippines, as there should be more work available than there are locals to do it as port facilities, the electrical system and wastewater plants will need upgrades.
President Bush signed a bill earlier this month that lifted some caps on temporary foreign workers, although that law may have to be tweaked again, Cohen said.
"But it is certainly a good start to help the military attract the workers it needs to make this happen," he said.
A growing reach
As for Continental, the growth will enhance Continental's international expansion program. Air Mike recently ran a charter flight from China to Guam, which already is a major tourist destination for Japan.
Without naming names, Continental Micronesia's Erwin said Guam's reach will only grow in the coming years.
"This gives us additional opportunities to expand to other international destinations from Guam," he said.
bill.hensel@chron.com
By BILL HENSEL JR.
HoustonChronicle
May 30, 2008
The military is the reason Continental Airlines has a hub on Guam, and the military is the reason it could get a big boost soon.
Continental Micronesia, which began in 1968 as an offshoot of the carrier's troop transport business during the Vietnam War, is expected to benefit over the next few years as the U.S. territory plays a central role in the realignment of U.S. forces in the region.
Some 170,000 people live on the Pacific island now, but the population is expected to swell by nearly one-third to roughly 225,000 by 2014, according to David Cohen, former deputy assistant secretary of the Interior Department.
That will mean Guam will have to be better equipped to handle the influx, said Cohen, the federal representative to the U.S. Pacific community from 2005 to 2007.
"The military buildup is going to require that Guam's civilian infrastructure be significantly upgraded and significantly expanded," said Cohen, a lawyer who returned to private practice earlier this year.
"The public infrastructure on Guam is not adequate to meet the needs of the current population."
The buildup will require thousands of additional skilled workers, and that is expected to trigger more business for Continental Micronesia, a subsidiary of Houston-based Continental.
Known as Air Mike, the carrier has 30 departures a day to 23 cities across the Pacific Rim, Micronesia and Hawaii.
Continental Micronesia is the dominant carrier in the region and the largest private employer in Guam, with more than 1,500 workers.
Northwest Airlines, Japan Airlines, China Airlines and All Nippon Airways also serve the island.
The carrier already is seeing a "slight uptick" in travelers, said Mark Erwin, its president and chief executive.
He expects that to accelerate quickly, with an increase of about 12,000 more people than normal during the next year. The carrier now flies about 1.5 million people annually.
"We see this as a great growth opportunity for our fourth hub," he said.
Family ties
Guam Gov. Felix Camacho said during a recent news conference related to Air Mike's 40th anniversary on the island that the carrier, which has a payroll of more than $90 million, is part of Guam's family.
"We do recognize that the privilege of having Continental here on Guam establishes a main transportation hub," the governor said.
"It's not only people who come in and out of Guam. It's also the cargo that comes in daily that affects our lives."
Camacho cited heavy investment at Guam's A.B. Won Pat International Airport that Air Mike has helped attract, and the Federal Aviation Administration recently approved an additional runway.
The Pacific region for Continental, which includes Guam, saw growth of
12 percent during the first quarter of this year compared with last year, according to a recent regulatory filing by the airline. The region generated $257 million in revenue during the quarter, compared with $462 million for Latin America, $606 million for the trans-Atlantic region and $1.3 billion domestically.
Guam often isn't mentioned as a Continental hub alongside Houston, Cleveland and Newark, although that could change as the military shifts some 8,000 Marines — along with about 9,000 dependents — from Okinawa, Japan.
Military presence
The U.S. has long had a military presence in Guam, located on the other side of the International Date Line from the U.S mainland, spurring the slogan "Where America's Day Begins."
The entire island would fit inside Houston's Beltway 8, noted Walter Dias, staff vice president of sales and marketing. Dias has worked for Continental both in Houston and in Guam, where he has lived for the past 15 years.
The relocation of the Marines will cost more than $10 billion and will involve the construction of a new base, housing and improved utilities.
Plans call for billions more to be spent for the Army, Navy and Air Force. Japan will foot about 60 percent of the relocation bill, Cohen said.
The U.S. and Japan came to an agreement to realign U.S. forces and determined it would be in the best interest of both countries if troops were shifted from Okinawa, he said.
"Guam is strategically located but on U.S. soil, which gives the military greater room for maneuvering than is usually the case in foreign nations," Cohen said.
Erwin said Continental could have a Houston-to-Guam flight or Los Angeles-to-Guam flight within about three years. For now, flights from the U.S. mainland stop in Hawaii.
The carrier already has a big presence on Guam, with pilots and flight attendants and others living there, he noted.
Continental Micronesia takes its presence in Guam seriously and is an integral part of the community, Erwin said. That includes donating computers to schools and operating medical evacuation flights when a Guamanian suffers emergency health issues. Those flights are conducted using miles donated by frequent fliers.
Air Mike pilots and flight attendants also largely live there.
"So a lot of money stays on the island," he said.
In addition to the Marines, the buildup is expected to attract an influx of foreign workers, many from the Philippines, as there should be more work available than there are locals to do it as port facilities, the electrical system and wastewater plants will need upgrades.
President Bush signed a bill earlier this month that lifted some caps on temporary foreign workers, although that law may have to be tweaked again, Cohen said.
"But it is certainly a good start to help the military attract the workers it needs to make this happen," he said.
A growing reach
As for Continental, the growth will enhance Continental's international expansion program. Air Mike recently ran a charter flight from China to Guam, which already is a major tourist destination for Japan.
Without naming names, Continental Micronesia's Erwin said Guam's reach will only grow in the coming years.
"This gives us additional opportunities to expand to other international destinations from Guam," he said.
bill.hensel@chron.com
Thursday, May 22, 2008
Land Use commission Blasts CCU
Land Use Commission blasts CCU's development moratorium
by John Davis
KUAM News
Thursday, May 22, 2008
The Consolidated Commission on Utilities' decision to implement a moratorium came as a complete surprise to the Guam Land Use Commission, tasked with approving new development projects across the island. The agency in a meeting this afternoon said the CCU's decision deals a devastating blow to the island's economy.
Tuesday's decision to ban all new development in the central part of Guam came as a shock to the GLUC, whose chairperson, Jay Lather, said, "Imagine the message that would go to investors when we say that we're not going to allow anymore applications to come in and we're not going to allow approved applications to go forward. I mean, this is a death blow - I personally think it's a mistake, and I won't stand for it."
Commissioner Frank Blaz also echoed the confusion amongst his colleagues, saying since the news of the moratorium he has changed his position regarding the approval of new development because he didn't realize how big the problem was. Now, he's just confused. "I don't know what to do, I'm not sure what I do is right when I approve, am I right if I disapprove, am I right? I'm in that state," he expressed. "It's not fair to say OK, we approve and you go and find solutions with the Guam Waterworks Authority. We're passing the buck here."
As a result of the confusion created by the moratorium, one developer's plan has been put on hold. Studio E Development's proposed ten-unit townhome was put on the backburner for at least a week. The development of Chichirika Estates in Tamuning runs close to $2.5 million and would create at least 50 jobs during its construction phase, not including future jobs the development would create through building maintenance, landscaping and security. Studio E project manager Jae Ji says he doesn't see why his project would be put on hold, but if GWA doesn't allow them to tap into existing sewer lines, they have a backup plan.
Ji tells KUAM News that if approved by Guam Environmental Protection Agency, they will install a septic tank, which would be pumped and transported to a wastewater treatment plant. The GLUC in the meantime will meet to discuss the issue again next week, hopefully with the presence of the Tumon Bay Improvement Consortium, the CCU and GWA.
by John Davis
KUAM News
Thursday, May 22, 2008
The Consolidated Commission on Utilities' decision to implement a moratorium came as a complete surprise to the Guam Land Use Commission, tasked with approving new development projects across the island. The agency in a meeting this afternoon said the CCU's decision deals a devastating blow to the island's economy.
Tuesday's decision to ban all new development in the central part of Guam came as a shock to the GLUC, whose chairperson, Jay Lather, said, "Imagine the message that would go to investors when we say that we're not going to allow anymore applications to come in and we're not going to allow approved applications to go forward. I mean, this is a death blow - I personally think it's a mistake, and I won't stand for it."
Commissioner Frank Blaz also echoed the confusion amongst his colleagues, saying since the news of the moratorium he has changed his position regarding the approval of new development because he didn't realize how big the problem was. Now, he's just confused. "I don't know what to do, I'm not sure what I do is right when I approve, am I right if I disapprove, am I right? I'm in that state," he expressed. "It's not fair to say OK, we approve and you go and find solutions with the Guam Waterworks Authority. We're passing the buck here."
As a result of the confusion created by the moratorium, one developer's plan has been put on hold. Studio E Development's proposed ten-unit townhome was put on the backburner for at least a week. The development of Chichirika Estates in Tamuning runs close to $2.5 million and would create at least 50 jobs during its construction phase, not including future jobs the development would create through building maintenance, landscaping and security. Studio E project manager Jae Ji says he doesn't see why his project would be put on hold, but if GWA doesn't allow them to tap into existing sewer lines, they have a backup plan.
Ji tells KUAM News that if approved by Guam Environmental Protection Agency, they will install a septic tank, which would be pumped and transported to a wastewater treatment plant. The GLUC in the meantime will meet to discuss the issue again next week, hopefully with the presence of the Tumon Bay Improvement Consortium, the CCU and GWA.
Thursday, February 07, 2008
Guam Industry Forum II
Master plan, Guam Industry Forum II on track
by Clynt Ridgell
KUAM News
Thursday, February 07, 2008
Joint Guam Program Office director David Bice is back on island. And part of his itinerary being a trip here to our Harmon studios, during which time he gave an update on the Guam Military Master Plan, the Guam Industry Forum, and the potential affects of the U.S. courts decision on the Futenma Replacement Facility in Okinawa.
Bice says the draft military master plan for Guam, one of the most eagerly anticipated documents in recent history, should be completed by next month. "We expect the draft master plan to be completed and released in March timeframe," he confirmed. Coincidentally at that time will be the second Guam Industry Forum. The retired Marine Corps major general says there are already 800 people registered for this forum that takes place on the 6th, 7th and 8th of March.
Last year's forum lasted only two days, but this year there will be an extra day to allow businesses to have one on one time with members of the Naval Engineering Facilities Command. "[The] last time a lot of businesses asked if they could have a chance to have one-on-one's with contracting agencies, and NAVFAC, and they've asked also to be able to meet with me and my staff," he continued.
Bice expects this year's forum to be even bigger and better than the previous event, saying, "Last year we had two hotels and we have a third hotel on standby that we can bring that into."
He's currently meeting with Government of Guam planners and utility officials to figure out ways to address ways the island can increase the capacity of it's infrastructure to meet the demands of the military buildup. JGPO is also currently narrowing their preferred alternatives for land use, Bice adding, "We want to start sitting down with Tony Lamorena at the planning department and talk about compatible land use so that the military activities don't spill onto the civilian community and vice-versa."
Bice also spoke about the status of the Futenma Replacement Facility in Japan. A federal judge ordered the Department of Defense to submit within three months documents describing its plans to assess the project's effects on the dugong and develop ways to lessen its impact. Bice says that both the DOD legal team and Japanese officials are working on complying with the court, adding that the land of the riding [sic] sun is conducting its own environmental impact assessment that may satisfy the U.S. court.
Although he admits that there is a direct connection between the construction of the Futenma facility and the movement of U.S. Marines to Guam, Bice doesn't believe that this will slow the movement of troops locally. Said Bice, "I know that the government of Japan is committed to ensuring that the FRF is constructed in a timeline that is agreed to so that the movement of marines from Okinawa to Guam can continue without delay or disruption."
The U.S. General Accountability Office describes the Futenma facility as a "critical component", one which could delay the troop relocation.
by Clynt Ridgell
KUAM News
Thursday, February 07, 2008
Joint Guam Program Office director David Bice is back on island. And part of his itinerary being a trip here to our Harmon studios, during which time he gave an update on the Guam Military Master Plan, the Guam Industry Forum, and the potential affects of the U.S. courts decision on the Futenma Replacement Facility in Okinawa.
Bice says the draft military master plan for Guam, one of the most eagerly anticipated documents in recent history, should be completed by next month. "We expect the draft master plan to be completed and released in March timeframe," he confirmed. Coincidentally at that time will be the second Guam Industry Forum. The retired Marine Corps major general says there are already 800 people registered for this forum that takes place on the 6th, 7th and 8th of March.
Last year's forum lasted only two days, but this year there will be an extra day to allow businesses to have one on one time with members of the Naval Engineering Facilities Command. "[The] last time a lot of businesses asked if they could have a chance to have one-on-one's with contracting agencies, and NAVFAC, and they've asked also to be able to meet with me and my staff," he continued.
Bice expects this year's forum to be even bigger and better than the previous event, saying, "Last year we had two hotels and we have a third hotel on standby that we can bring that into."
He's currently meeting with Government of Guam planners and utility officials to figure out ways to address ways the island can increase the capacity of it's infrastructure to meet the demands of the military buildup. JGPO is also currently narrowing their preferred alternatives for land use, Bice adding, "We want to start sitting down with Tony Lamorena at the planning department and talk about compatible land use so that the military activities don't spill onto the civilian community and vice-versa."
Bice also spoke about the status of the Futenma Replacement Facility in Japan. A federal judge ordered the Department of Defense to submit within three months documents describing its plans to assess the project's effects on the dugong and develop ways to lessen its impact. Bice says that both the DOD legal team and Japanese officials are working on complying with the court, adding that the land of the riding [sic] sun is conducting its own environmental impact assessment that may satisfy the U.S. court.
Although he admits that there is a direct connection between the construction of the Futenma facility and the movement of U.S. Marines to Guam, Bice doesn't believe that this will slow the movement of troops locally. Said Bice, "I know that the government of Japan is committed to ensuring that the FRF is constructed in a timeline that is agreed to so that the movement of marines from Okinawa to Guam can continue without delay or disruption."
The U.S. General Accountability Office describes the Futenma facility as a "critical component", one which could delay the troop relocation.
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