1. Mr. Bartley Jackson Chairman, Guam Hotel and Restaurant Association

3. Tourism Industry Guam’s tourism industry is 40+ years old Responsible for 60 percent of the Gross Island Product More than $36 million in Gross Receipts Tax each year More than $20 million in Hotel Occupancy Tax each year

4. Tourism Industry Global Insight study for GVB (as of June 2007) –Tourists spend on shopping (42.9%), lodging (30.8%), entertainment (14%), food & beverage (11.5%) and transportation (0.8%) –One job on Guam is created for every $76,000 in additional visitor spending –For every $8 spent by visitor, thhey pay $1 in taxes –Without tourism, each household would pay an additional $2,577 in taxes to maintain the current level of tax receipts Continued improvement in core markets –Japan, Korea, and Taiwan

5. Tourism Industry Positive outlook for tourism with emerging markets –Russia 2,000 arrivals expected 336 arrivals in 2/2012 vs. 115 in 2/2011 192% increase Year-to-Date –China 20,000 arrivals expected 2,859 in Arrivals in 2/2012 vs. 2,226 in 2/2011 28% increase Year-to-Date For every $8 in visitor spend is a $1 in tax revenue, therefore 22,000 new visitors spending more than $6,000 during their stay on Guam equates to $16.5M

6. Tourism Industry As we expand on each market, we will continue to see Guam’s tourism industry go through many challenges –Retail expectations –Service expectations –Guest experiences –Language barriers –Tourist demographics shifting psychographics, purchasing power, thus affecting overall revenue and taxes for Guam –Labor shortage Unskilled workers (e.g. guest contact) Professional, silled workers (e.g. engineering, accounting, HHR) –Need for additional skilled laborers

7. Tourism and the Military Since the 1970’s, tourism and military have. co-existed. Both industries have increased and decreased presence throughout the 1980’s, 1990s and most recently in 2000s. Both industries have been challenged with economic issues, budget cuts, and global financial crisis.

8. Tourism and the Military Both industries are working at a build up: –National Defense Authorization Act approving funds for the relocation of marines and other branches of military to Guam! –GVB, GHRA, and industry stakeholders working with the Governor and Congresswoman on the Guam-CNMI Visa Waiver program to expand parole authority to China! (received Russia parole authority in January 2012)

9. Employement in Tourism Directly employs more than 20,000 people –Approximately 25 percent of the employed population in non- Government jobs –Indirect jobs for more than 30,000 people Contributes more than $200 million in wages each year –Additional millions in employee benefits Industry has 35% turnover rate –Expected to increase with skilled workers leaving hospitality

10. Employment in Tourism – Guam Census Guam Census 2000 –Total population of 154,805 people –Tourism industry employs the following demographic mix: 60% Filipino 20% Chamorro 10% outer islands 10% Asian/ Other Guam Census 2010 –Total population of 159,358 –Demographic profile is not available at this time as per the Bureau of Statistics & Plans.

11. Workforce Development Educate employees Continually Develop the workforce Be a resource for our members Provide training programs through GHRA and other organizations Conduct regular annual wage and benefits survey and review Improve the service standards in the industry Provide tools to comply with industry regulatory standards Promote internship programs through GDOE, GCC and UOG Support International internship for cultural exchange Lead the industry

12. Training Programs GHRA is committed to being the lead NGO to advocate just legislation and assist with governmental regulartions. GHRA provides the tools to meet industry standards: –Food safety programs and certification (e.g. DPHSS, HSSP) –Safety and security programs and certifications (e.g. GHS/ OCD) –Occupational safety and health programs (e.g. OSHA) –Pesticides training (e.g. GEPA) GHRA promotes hard and soft skills training all year long GHRA provides free training programs for small businesses through the USDA RBEG grant.

13. US Registered Apprenticeship Tourism jobs are listed in the Demands Occupatioin Listing Guam’s DOL’s Guam Registered Apprenticesip Program (GRAP) includes economic incentives for employers Free education with the Manpower Development Fund (70 percent of every $1000 goes to apprenticeship) Educate and train to create a skilled workforce On the job training with journeymen Engages employers to hire and/ or sponsor employees for the US Registered Apprenticeship program Nationally recognized program and education

14. Strategic Partnerships Department of Labor –GHRA is one of five representatives for private sector represented on the Workforce Investment Act (WIA) Board AHRD –Passport to Careers –Dislocated Workers Vocational programs in high schools with GCC and UOG –Pro Start –Lodging Management Program GCC Culinary Arts and tourism programs UOG International Tourism degree Support programs withh the Tourism Education Council