Guam hotel occupancy declines as tourist cancellations rise

Saipan Mayor David M. Apatang, third left, poses with Marcus Landon Aydlett, fourth left, of the National Weather Service on Guam, the mayor’s staffers and officials of Homeland Security and Emergency Management. Contributed photo

Saipan Mayor David M. Apatang, third left, poses with Marcus Landon Aydlett, fourth left, of the National Weather Service on Guam, the mayor’s staffers and officials of Homeland Security and Emergency Management. Contributed photo

As of Feb. 27, Guam Visitors Bureau statistics reported a total of 31,366 — that’s double the cancellations reported last week of over 15,000. The reduced visitor numbers are forcing local restaurants and other businesses to adjust as they try to cushion the impact. A number of local businesses, particularly in Tumon, are offering discounted rates for meals and shows.

Statistics for February showed almost a 30% decrease in tourist arrivals from Korea and an increase of 2.5% from Japan compared to the same month last year. Korea and Japan are Guam’s main tourist markets.

“Due to the coronavirus, the occupancy in our hotels have been affected as visitor arrivals to the island have declined,” said Milton Morinaga, managing director of P.H.R. Ken Micronesia Inc.

P.H.R. Ken Micronesia Inc. consists of resorts on Guam and Saipan, country clubs, and hotels along Tumon Bay — Hotel Nikko Guam, Hyatt Regency Guam, Pacific Islands Club Guam, Hilton Guam Resort & Spa, and Sheraton Laguna Guam Resort.

Morinaga said his organization is monitoring the situation and is in close communication with travel agents in Japan and Korea.

Morinaga also is the chairman of the newly formed novel coronavirus task force. The task force, created by the Guam Visitors Bureau board, is tasked to work with its counterparts in Japan and Korea to gather information on the novel coronavirus and its impact on the local economies as well as attitudes about traveling. The task force will present that report to the GVB board of directors, which will then report to the governor.

“We will continue to monitor updates on the coronavirus from government and health authorities,” Morinaga said.

The Guam Daily Post requested hotel occupancy figures from GVB, but the agency doesn’t have updated occupancy numbers now, as data is gathered on a quarterly basis, officials said.

Steve Solberg, general manager of the Outrigger Beach Resort, said hotel occupancy has gone down about 10%.

“It’s quite a serious drop in occupancy, and we see that for the next two to three months,” Solberg said.

However, Solberg said, because Japanese travelers account for most of the hotel’s market, the impact is minimal — compared to other hotels, which are oriented more heavily toward the Korean market.

As a result, Solberg said, the hotel did not need to make changes in its operations. He added that the Outrigger typically works with a small, more efficient crew. As such, he said, employees have been accumulating overtime.

“Now they can get normal days off,” Solberg said. “We’re encouraging people to take vacations,” he added.

He said, having created that buffer, “we don’t have to lay off anybody.”

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