Vol. 35 No.45
       ©2007 Marianas Variety
Thursday, May 17, 2007 www.mvariety.com
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Guam hotels join clamor for Bill 74 veto

By Gerardo R. Partido
Variety News Staff

The island’s hotel sector has joined the growing clamor against Bill 74, which increases various fees that companies say will increase the cost of doing business on Guam.
Richard Rennie, chairman of the Guam Hotel and Restaurant Association, urged all GHRA members to lobby for a veto of the bill, which is now in the governor’s office.
Rennie made the call during GHRA’s general membership meeting yesterday.
According to Rennie, the additional fees would hurt Guam’s hotel and restaurant sectors at a time when visitor arrivals to Guam are on the decline.
GHRA now joins the Guam Chamber of Commerce and the Guam Federation of Teachers in calling for Gov. Felix P. Camacho to veto the bill.
Earlier, GHRA president Mary Torre urged the association members to oppose the new fee schedule packages that have been incorporated in Bill 74, the 2007 revised budget measure.
“Recognizing the financial challenges the government of Guam currently faces, GHRA strongly opposes any increases in taxes without cost cutting measures in place, a commitment on government reform, and accountability and justifications for the fees and taxes being introduced and amended through Bill 74,” Torre stated in a memo to GHRA members.
Torre also expressed her concerns about the way Bill 74 has been introduced and amended without a public hearing.
The proposed fees and tax increases will apply to business licenses, service licenses, liquor licenses, and recreational and amusement permits, among others.
“With the proposed fees and tax increases, the community also has to deal with the increases in federal wages, low visitor arrivals and having to remain competitive with other destinations in an already competitive market,” Torre said.
She added that before considering the option of further taxing the people, the government of Guam should concentrate on reorganization, efficiency and cost-cutting measures to right size its operations.
Torre also said that additional fees and taxes would affect not only hotel and restaurant owners but also consumers, who will bear the additional costs.