HAGÅTÑA (Office of the Guam Governor) — Speaking before a record crowd at the Guam Chamber of Commerce’s monthly luncheon on Wednesday, Guam Gov. Lou Leon Guerrero delivered a sweeping State of the Economy address declaring that Guam has moved beyond recovery and into a decisive new phase of resurgence.
“Guam has moved beyond holding the line and into a moment of possibility,” the Governor said. “The question before us is no longer whether we can recover. Recovery is underway. The question now is whether we are willing to do the harder, more important work — the work of resurgence.”
In an address that blended economic data with long-term strategy, the Governor pointed to clear indicators of progress: unemployment reduced to 3.2%, more than 6,000 jobs added since the height of the pandemic, multi-year General Fund surpluses, faster tax refunds, and restored confidence from bond markets that now consider Guam investment-grade.
“Today, the ground is firmer,” the Governor said. “Financial audits are cleaner. And the institutions that underpin commerce — from our port to our utilities — are operating with discipline and foresight.”
The Governor emphasized that these gains did not occur by chance but through sustained responsibility and reform. “It happened because this community — government, business, and workers — chose responsibility over shortcuts and reform over delay.”
Tourism’s recovery featured prominently in the address, with visitor arrivals rising more than 12% from 2023 to 2024 and hotel occupancy tax collections increasing by more than 26%. In 2024 alone, the visitor economy generated nearly $1 billion in value-added activity, supporting more than 14,000 jobs across Guam.
At the same time, the Governor acknowledged the loss of major retail anchors, urging realism rather than nostalgia. “This moment does not ask us to defend the past. It asks us to compete in the present.”
The address also detailed the scale — and responsibility — of defense-related growth, noting that over the past decade the Department of War has directed more than $5 billion in military construction and housing investment to Guam.
“While we are proud of Guam’s role in our nation’s security, no one can deny that this exceptional responsibility comes with a unique burden,” the Governor said, citing pressures on housing, infrastructure, and the labor market. She announced that preliminary coordination meetings are expected to begin soon toward convening the Department of War’s Economic Adjustment Committee — an important step to ensure federal investments align with Guam’s long-term economic health.
“This is how we turn obligation into opportunity and growth into sustainability.”
Looking forward, the Governor highlighted investments in workforce development, diversification, and innovation — from registered apprenticeships producing more than 1,000 skilled workers to advanced manufacturing through the Guam Accelerator Project and the GAMMA additive manufacturing facility now under construction.
“This is how Guam competes — not by waiting, but by preparing,” she said.
The Governor also underscored healthcare affordability and access as central to economic stability, pointing to the successful implementation of GovGuam’s self-insurance plan. “We proved that health insurance can be delivered with lower premiums and better benefits while still saving taxpayers millions of dollars.”
She reaffirmed her commitment to building a new hospital for Guam, warning that decisions made now will shape healthcare outcomes for decades. “Ten years from now, no one will remember the arguments. They will remember only whether we protected the capacity to care for our people.”
Closing her remarks, the Governor framed economic success not just in fiscal terms, but in lived outcomes — graduation rates, public safety, fair pay, and visible investment in villages across the island.
“Growth that outpaces health, education, and public safety does not lift a community up. It strains it,” she said. “Which is why our progress — our resurgence — is not only about numbers. It is about where investment shows up and whether people can see it: in their villages, in their neighborhoods, in their daily lives.”
The Governor concluded by calling for shared leadership and responsibility in the next phase of Guam’s economic journey.
“Leadership now requires responsibility,” she said. “And together, we must ensure that growth becomes resurgence—shared, durable, and worthy of the people of Guam.”
