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Written by Michael Rudolph, Guam News Factor Writer

Tuesday, 17 November 2009 16:01

Photo courtesy of http://sites.google.com/site/frschumann/ba-611-strategic-marketing-management

What An Increase In Japanese GDP Means To Guam

By Michael Rudolph

GUAM - Japan has announced economic growth faster than expected for the third quarter. It appears that Japan may be pulling itself out of its worst economic recession since World War II. This is good news for Guam as it could signal a rise in Japanese tourists on Guam.

Ernie Galito from the Guam Visitors Bureau told Guam News Factor, "any type of consumer confidence indicator such as an increased GDP or a strong Yen to the Dollar is good news for the Guam tourism industry as it signals that the Japanese will likely increase their spending on luxury goods and in leisure travel activities."

According to GVB's Japan Visitor Tracker Exit Profile, it is estimated that 50 percent of Japanese tourists at least consider the state of Japan's economy when deciding to travel outside the country.

However, in a recent BBC article, Japan National Strategy Minister Naoto Kan states that the Japanese "economy is expected to continue to recover as overseas economies improve. At the same time, the employment situation remains very bad." An expected scarcity of jobs means households will have less to spend.

With dim employment prospects, discretionary spending is likely to decrease, which could indicate a reduction the number of Japanese that have the ability to afford a vacation.

That may sound counterintuitive from a better-for-tourism perspective. But the silver lining in all this is that the BBC also reported that most economists say there is little chance of Japan's economy returning to recession, given the latest figures.

In the interim, it's conceivable that more upper middle-income earners could find Guam more attractive for short, close-by getaways in the near-term. And eventually, as Japan's economy continues to gradually improve, Guam can only benefit, given Japan's prevailing influence on our economy.

Read the BBC's "Japan's economy continues growing."

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