Guam Case background:- An island in Philippines Sea. It is administered by U.S. Two military base present.
- Discovered by Spanish and ruled it for 4 centuries. Taken over by U.S. Japan briefly controlled it during WW-2. - Ethnically diverse. Chamorros are the original inhabitants. - Island Revenue Generators:* Tourism * Military -Known for its natural beauty, clean beaches, duty free shopping, culture, heritage (WW-2 memorials, Chamorro culture etc ). -Guam Visitors Bureau is the Tourism Promotional body of Guam, headed by 13 Board of Directors, who are elected by the Government. GVM funding is done by government. -Visitors Profile *Japanese:- Constitute 80% of tourist visiting Guam. Most of them come for pleasure. Lower income and Young age group (20-39 yrs) people prefer Guam. *Koreans:- Constitute 10%. *Chinese, Taiwanese, Hong Kong and USA:- Constitute the remaining 10%.
Transportation Industry:To Guam- Air, Few Cruise Ships. Supplies to Guam are done by Ships. In Guam:- Couple of bus transport operators. People prefer taxi due to poor bus service.
Critical Problem:Decrease in Tourism Business Issues:1) Guam Visitors Bureau (GVM) complex organization structure leading to slow decision making process. 2) GVM dependency on government on funds. Funding was erratic. 3) Poor promotion of Guam in nearby markets like Philippines, China, Taiwan.
4) Low Customer satisfaction due to poor food quality, transportation, sports/recreation activities, trekking facilities. 5) Skilled and unskilled labour shortage. 6) Lack of any Events and Activities in Guam. 7) Only one customer segment targeted.
Possible solutions:1) Reduce the GVM complex organization structure for faster decision making. Reduce the influence of government over GVM. 2) Proper marketing is done to attract the tourists from nearby countries apart from Japan and Korea. 3) Promote Guam as a cultural heritage hub, its role in WW-2. 4) Let GVM have its own source of funding through tourism taxes. 5) Target the other market segment in Japan especially the older age group. Promote Guam as a friendly, low cost tourist location for retirees and first timers. 6) Improve the recreation activities and transport facilities in Guam through public-private model. 7) Educate the locals and hotel/restaurant lobby about the importance of Tourism for Guams economy. 8 ) Improving the supplier chain to Guam to reduce cost. 9) Signage to be in both English and local languages in tourist locations. 10) Impart training to local population to improve their skills.