Lawmakers Challenge GVB on Airline Incentives Program as Guam’s Tourism Struggles to Bounce Back

At a recent joint oversight hearing on Guam’s tourism and airport operations, lawmakers grilled officials from the Guam Visitors Bureau (GVB) regarding the slow rollout of the $10 million airline incentives program designed to boost tourism. With $7.5 million already received by the GVB, officials have committed significant funds, yet the program’s implementation has faced delays, raising questions about its effectiveness.
The airline incentives program was approved by lawmakers months ago in an effort to recover the tourism industry, which has struggled since the pandemic. Vice Speaker Tony Ada and Senator Jesse Lujan questioned why more funds had not been spent, despite promises made during the budget session in October 2025 that this funding was crucial for the recovery of Guam’s tourism sector.
Ada expressed that they had been told the $10 million would be essential for airline incentives. He pointed out that, as of February 2026, with March approaching, there was still a remaining balance of $7.4 million, questioning what had caused the delay.
GVB’s Spending Breakdown: A Slow Start
GVB General Manager Régine Biscoe Lee and GVB financial controller Rudd Gudmalin explained that out of the $7.5 million received so far, only $62,000 had been spent, primarily for the Philippine market. However, GVB had already committed a total of $9 million for the Korean and Japanese markets, with $5 million earmarked for Korea and $4 million for Japan.
Despite the commitments made, the amount spent had been relatively low, which led lawmakers to press GVB officials for an explanation. Senator Lujan questioned why the funds hadn’t been fully deployed, emphasizing that the underutilization of the funds could negatively impact Guam’s fragile tourism industry.
Nadine Leon Guerrero, GVB Director of Global Marketing, clarified that GVB has already committed funds to the airline incentives, but the funds haven’t yet been fully invoiced for some flights, explaining part of the delay. She added that Philippine Airlines had received an incentive, though specific details on the amount of the incentive were not disclosed.
Biscoe Lee stated that they were not disclosing the exact amounts at that time, as they wanted to maintain their negotiating power and ensure they were securing the best deal for Guam.
Tourism Challenges: Not Back to 2019 Levels
Lawmakers also questioned GVB officials about the slow recovery of tourism, which still lags behind pre-pandemic levels. In 2019, Guam welcomed 1.6 million visitors, but that number dropped significantly after the pandemic. The lack of sufficient flights and ongoing structural reductions in fleet capacity have made it challenging to return to those levels.
Senator Ada asked why tourism had not returned to the levels of success seen in 2019.
GVB General Manager Régine Biscoe Lee responded by stating that one of the primary obstacles is the reduced number of available airline seats. “In 2019, we had about 38,000 to 40,000 international seats per week. In 2026, we only have 22,000 to 25,000 seats per week,” she said, comparing it to buses transporting tourists.
“In 2019, there were 40 buses arriving each week. In 2026, there are only 24 buses,” Biscoe Lee explained. This reduction in available flights, she said, is due to a decrease in fleet capacity after the pandemic, and many airlines have prioritized higher-yield routes.
The International Air Transport Association (IATA) has noted a “structural reduction in fleet capacity”, with wide-body aircraft—key to long-haul Pacific routes—being retired. According to Biscoe Lee, even large markets like Hawaii have struggled to restore flights to Japan, further limiting Guam’s ability to attract visitors.
Airline Incentives Still Key to Future Growth
Despite these challenges, GVB Board Chairman George Chiu emphasized that airline incentives remained crucial to the island’s tourism recovery. He explained that their goal was to return to the peak levels they had previously reached, referring to the 750,000 airline seats arriving from Tokyo in 2019.
He expressed concern that with the current number of flights from Japan and Korea, it would be difficult for Guam to hit its targets for visitor numbers. Airline incentives, he said, are necessary to increase the number of seats available and boost tourism numbers.
Tourism Numbers and Projections for 2026
GVB Director of Tourism Research Christian Valencia provided some optimism by sharing the latest tourism arrival numbers for fiscal year 2026. From October 2025 to January 2026, Guam saw 297,800 visitors, a 22.97% increase over the same period in fiscal year 2025. While this is a positive trend, Valencia pointed out that 2025 had a difficult start, particularly due to issues in the Korean market, such as the Jeju Air crash and martial law declarations in South Korea.
Valencia mentioned that fiscal year 2025 had a rocky start, with visitor numbers being 3.3% lower than those of fiscal year 2024. However, he expressed optimism about the island’s recovery, pointing out that the first four months of fiscal year 2026 showed a 9.7% increase compared to fiscal 2024. He added that the goal remained to reach 1 million visitors by the end of fiscal year 2026.
GVB’s Future Plans: The Road to Recovery
Despite the challenges, GVB is hopeful for the future. Biscoe Lee stated that GVB is continuing efforts to bring back tourism jobs by the end of the fiscal year, aiming to provide more opportunities for locals in the tourism industry.
As GVB retools its efforts and adjusts its strategies, officials are hopeful that with continued airline incentives, tourism will reach its pre-pandemic levels once again.
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