sec b group 2 - guam case study

8/3/2019 Sec B Group 2 - GUAM Case Study

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Given below is a SWOT analysis of the case study on the Guam Visitor Bureau.

STRENGTHS:

y Guam has a pristine and peaceful environment. Its landscape is lined withbeautiful scenery, beaches and mountainous terrain. It is also a popular divingdestination. The weather is pleasant all year round.

y There are around 240 man-made attractions, 90 natural attractions and around 55cultural attractions.

y There is also a strong cultural diversity present in Guam, the dominant culturebeing Chamorro. At the same time there is also a strong American flavour, whichis an attraction for East Asian tourists.

y There is provision of duty free goods to attract tourists.

OPPORTUNITIES

y It enjoys close proximity to two of the richest Asian countries - Korea and Japan.A visa waiver is offered to tourists from there.

y Tourists' perceive Guam as an ideal location, safe for families, and a familiarlocation.

WEAKNESS

y Only 41% of people surveyed said that they come to Guam because of its culturalheritage. Whereas, Guam has a rich cultural heritage.y Tourists complain of no events and activities on coming to Guam.y There is nothing distinctly special about the food served in Guam, if we go by the

market research survey. Only 39% of people surveyed said that the food is good.

y Staff at top hotel franchisees are not experts, but either fresh trainees (who wereposted here to learn) or on the verge of retirement. Because of this the service-levels at these hotels is poor.

y The transportation services (airline, bus) are not up to the mark.y The hotel occupancy is at 60-65%. Apart from this there is under-utilisation of in-

house meeting facilities available at hotels, and thus they generate minimum

returns.y People came to taste ' Americana'. On the other hand, Japanese culture is more

focused on. Signage at tourist places is mostly in Japanese, usually accompaniedwith English translation. Because of which most non-Asian tourists said that theyfelt that they were on a Japanese island rather than in the U.S.

y Japanese tourists (who make up 80% of total tourists to Guam) were not happyabout the presence of strip clubs and similar businesses.


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y The local population (Chamorro - 37%, Filipino - 26%) is vary of outsiders. This isbecause 80% of tourists were Japanese. And the memories of World War II (whenJapan ruled Guam) are still fresh in their minds.

y In the GVB, the large size of the board of directors, the numerous committeesand the formal lines of communication made for a slow decision-making process.

y Lately, the budget allocated to the GVB had not been received on time and in full,to maintain and even upgrade Guam as a tourist destination.

THREATS

y Guam is sensitive to macro-economic and political developments, because of thepresence of the American Military Checkpoint.

y Guam is located such that it is susceptible to typhoon damage.y Other countries (like Bali, Philippines, Thailand, Hawaii, Australia, China, Korea)

are posing competition to Guam in terms of promoting themselves as touristdestinations.

y Prices of commodities are higher (1.3 to 1.5 times higher) than that of othercountries. This is because most of the items are imported.

To deal with the weaknesses and threats, we have proposed the following market-oriented strategy. These efforts will make the Guam trip a value added one whichmakes them come back for more. Also,

y Organise various cultural events, and activities.y Open 2 and 3 star rated hotels for the middle class customers.y Distinguish American hotels from Japanese, so that American tourists also feel at

home in Guam. Also work on the Signage problem.

y Take steps to improve the quality of food and services at the existing hotels inGuam.

y Improve the bus transport servicey Since 80% of Guam tourists come from Japan (Tokyo), attraction for Japanese can

be focused on especially if we take a narrow target market: Tokyo and families.For example, check the business of adult movies/magazines/strip clubs etc. on thehotel drive, and find an alternative, by either relocating that market or defining

some rules & regulations for them.y Should try to bring back the actual Chamorro and Filipino culture , so that the

local population feel comfortable and welcome tourists with open arms to theirhome town. It will also give tourists a taste of the local culture of Guam, and itsAmerican essence. American heritage to be promoted in the Japanese market.

y Encourage other countries like Korea, Philippines etc. to invest in Guam tourismmarket.


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y Reduce or simplify the Organisational Structure of GVB, to encourage bettercommunication & transparency, and fasten the decision making process.

y Take steps to make Guam a sophisticated place for tourist of all ages.

sec b group 2 - guam case study

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