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All islands in the Pacific are commonly described as unique, yet when it comes to Guam, the word acquires new meaning. The southernmost of the Marianas Islands, surrounded by the crystal clear waters of the Pacific Ocean and rimmed in seemingly untouched white sandy beaches, Guam is also a crossroads of history, home of ancient indigenous cultures such as the Chamorro and Carolinian, strategic military location during both World Wars, and to this day a key geopolitical player in the South Pacific as it houses US Naval and Army bases on its soil.
A hotspot for global tourism, attracted by its yearround summer weather and the world-renowned local hospitality, Guam is also a favourite among international investors, drawn not by the out-of-this-world natural sites, but by the bustling and ambitious business sector that has started putting Guam in the map of the world in construction, development, and data warehousing, among others. All in all, an island in the heart of Micronesia yet connected to the modern world, a blend of modern and ancient Asian cultures but ruled by US laws on US soil, a natural paradise in which to lose yourself, and a vibrant economy connected to the world through underwater data cables, global trade relations, geopolitics, and international investment. How is that for unique? You can find the world in Guam, but you cannot find Guam anywhere else in the world
🟡Guam: A Remote Paradise Island Connected to the Modern World.
After a global pandemic, a battle with inflation, and its first major typhoon in 20 years, Guam’s economy is growing stronger beyond any expectation, and it is showing the world the special resilience and the drive towards improvement of this Pacific island and of it people. “More people are participating in the job market this year, 2,000 private sector jobs were created last year, and wages are up by 11%”, says Governor Lou Leon Guerrero, who has led Guam through these crises and into the present economic revival. With unemployment down by 4.1%, General Fund surpluses for five consecutive fiscal years, and the island’s Rainy-Day account replenished with cash, the revival is nothing short of a resounding success.
Yet the government’s achievements are not only strictly economic but have made significant strides in sectors such as education, health, and tax and investment legislation. According to Leon Guerrero, leadership has played a crucial role in coordinating the efforts of agencies and government bodies in working towards a shared objective. “Our competent administration and cabinet, strategically placed directors, and commitment to our vision have been key factors”, she explains. In fact, beginning with a plan to improve the financial health of the government itself, Leon Guerrero successfully stabilized its finances, retiring an $83 million General Fund deficit within two and a half years of taking office. This had an incredible impact on the government’s ability to provide services to its people. “Even during the pandemic we’ve experienced a surplus thanks to fiscal discipline, understanding the need for corrections, and collaboration with the legislature”, Leon Guerrero adds.
Following this strategy, the government set on turning Guam into an ideal destination for global investment, showcasing the territory’s specific opportunities, particularly in sectors such as construction and tourism. Spurred by military investment, Guam’s construction sector offers significant potential for investment, made particularly attractive by the fact that the island’s legislative framework mirrors that of the US, and therefore affords the same assurances, transparency, and safety to investors as the mainland. “But we can’t limit our horizons in this respect”, adds Leon Guerrero, “and so we are working on diversifying investments, highlighting the various opportunities the territory holds, and creating possibilities in other sectors such as agriculture”.
Yet global investment must go hand in hand with local entrepreneurship, and for this reason the administration started backing a number of incubator programs designed to fan the spark of entrepreneurship and strengthen the results of small business startups. Among these projects is the Guam Unique Merchandise and Art (GUMA), which experienced a standout year in 2023 and helped over 70 small businesses bring their products to market. “Our administration also worked aggressively to deliver results on the promise of additive manufacturing and data hub management on Guam”, adds Leon Guerrero, referring to the recent agreement of the Department of Defense to a multimillion-dollar partnership focused on additive manufacturing for ship and submarine parts, which will bring more economic opportunities for people in the island. Moreover, Google has partnered with Guam to lay sun sea cables which will strengthen the island’s connection to the Internet and make it a vital data node in this region, helping it to connect the northern and central Pacific to Asia and to the U.S. mainland. “This innovative technology will open up partnership opportunities for our local businesses, and it will certainly change the pace and dimension of foreign investment in the island”, Leon Guerrero adds.
With a clearer idea of Guam’s investment landscape, we asked Governor Leon Guerrero a few more questions to help us delve further into the ins and outs of the island’s economic resurgence and plans for the near future.
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