Officials with the Guam Visitors Bureau outlined growing concerns over rising fuel prices and their impact on travel to Guam during the agency’s quarterly membership meeting on Tuesday, while lawmakers highlighted new efforts to strengthen the island’s tourism industry.
GVB President and CEO Regine Biscoe Lee said global fuel prices have surged significantly, driving up airline operating costs and affecting visitor access to the island.
Fuel now accounts for an estimated 20% to 30% of airline expenses, with ticket surcharges increasing from about $50 to nearly $150.
As a result, Guam has already seen a drop in air service.
According to Lee, the seat capacity in one of Guam’s largest markets declined by more than 20% in a single month, equating to nearly 8,000 fewer seats filled, while some routes are being reduced.
Lee emphasized that higher travel costs are directly impacting affordability for visitors, noting that in some cases, the cost of traveling to Guam has nearly doubled before departure.
GVB is working with stakeholders and airline partners to manage the impact, committing about $2 million toward offsetting fuel-related costs in key markets.
However, Lee noted that fully offsetting the impact would require more than $7 million. She said the agency’s focus is on protecting demand, maintaining air access, and coordinating an industry-wide response.
Meanwhile, tourism oversight chair Sen. Jesse Lujan addressed industry members, acknowledging ongoing economic challenges and emphasizing recent legislative efforts to support recovery.
Lujan credited collaboration between government and industry for the passage of a $10 million flight incentive measure aimed at restoring air service.
He also highlighted progress on Bill 228, which would establish the Enhancing Tourism Aesthetics (ETA) Program, a proposed $25 million tax incentive over five years to revitalize Guam’s tourism infrastructure.
The measure, which passed the Legislature, is now awaiting action from the governor. Lujan said the program is intended to improve Guam’s competitiveness by investing in the island’s appearance and overall visitor experience, including facilities, landscaping, and streetscapes.
He added that improving the island’s tourism product is critical as the industry works to recover from recent downturns, and notes support for expanding into areas such as sports and wellness tourism.
Both officials emphasized the need for continued collaboration as Guam navigates ongoing economic pressure and works to sustain its visitor industry.
GVB used the theme “Welcome to Wellness” as a moment to position Guam as a sports and wellness hub for locals and tourists.
GVB officials said they’ve seen upticks in airfare by hosting wellness and sports events. Instead of taking competitors off the island, they’re seeing those from the outside traveling in.
