Guam’s economy is on a trajectory of growth and recovery from the pandemic downturn, creating an ideal environment for new companies entering the market and existing businesses aiming to expand. Let us explore which sectors or areas are experiencing growth.
Tourism recovery
The tourism sector is starting to recover from the pandemic. It will continue to do so, according to Guam FY2025 Budget Request, with significant increases in visitor arrivals from Korea and Japan since the easing of travel restrictions. The recovery involves restoring flight schedules and reopening hotels, shops, restaurants, and attractions as demand rebound.
Retail sector expansion
One notable example of new business activity is the anticipated opening of Don Don Donki in Tamuning. This sizeable retail discount store, affiliated with Japan’s largest discount store, Don Quijote, will feature a retail space of approximately 160,000 square feet, including grocery sales and a food court with in-house restaurants.
This project highlights the potential for retail businesses to thrive in Guam, given the island’s recovering tourism sector and the increasing demand for diverse shopping experiences.
Construction sector growth
The construction sector in Guam is experiencing substantial growth, with construction employment rising from 7,860 in September 2020 to 12,080 in September 2023. Construction will continue to increase due to the ongoing work at Camp Blaz Marine Corps base, missile defense projects, and various other private and government projects.
Major civil projects, such as the new American Grocery store in Maite and infrastructure projects funded by the $1.2 trillion bipartisan infrastructure law, present business opportunities in construction, real estate and related services.
Financial services expansion
Financial services are also expanding, with several banks and credit unions opening new branches and upgrading facilities. For instance, the Bank of Guam reopened its Tamuning branch with a modern design, and Community First Guam Federal Credit Union inaugurated its new Hågatña Headquarters and Members Service Center.
These developments indicate a growing demand for financial services, allowing new entrants to offer innovative banking solutions and capture market share.
Seeking legal advice when starting a business in Guam’s construction, retail, or financial areas is crucial for ensuring compliance with laws and regulations, choosing the right business structure, and drafting sound contracts and agreements.
Guam is becoming a vibrant place for businesses to start and grow, thanks to its strong economic recovery, booming sectors, and improved financial stability. Business owners can greatly benefit from understanding the anticipated trends for 2025.