BUSINESS OPPORTUNITIES IN GUAM. Graham Poon G.K. Consulting For TropLinks Inc. 09 July, 2013
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1 BUSINESS OPPORTUNITIES IN GUAM Graham Poon G.K. Consulting For TropLinks Inc. 09 July, 2013
2 Presenter Background Lived in Guam almost 7 years Managed tourist dinner-cruise operation, largest of its type in market Also was Consultant to Austrade 4 years then became Austrade Trade Commissioner, Manila covering Guam and Micronesia for 3.5 years
3 WHAT IS GUAM U.S. Territory (not a state like Hawaii) Part of region known generically as Micronesia, US dollar is universal 4.5 hours direct flight north of Cairns Current Population: Approx 175,000 Indigenous population are Chamorro Very multi-cultural, lge. Filipino population Small: 48kms X 13kms, 549 sq kms
4 Guam & Micronesia
5 Rules and Regulations:1 Covered under U.S. Federal law as well as local Guam law Tax code is mirror of Federal Tax Law Need a business license if you set up there Monthly GRT of 4% payable monthly Local business incentives for investment
6 Rules and Regulations:2 Local rules for certification e.g. engineers need approval Sub-contracting may get around this Technically-based products may need US certification e.g. UL for electrical Get professional legal and financial help-mix of Federal and Guam law
7 Guam Economy GDP: US$ 2.5 Billion Main private sector industry is tourism (60%), mainly Japanese Other major markets are Korea, China/HK US mainland not a major market currently though this could change later Other main income source is GovGuam/Military (30%) Economy was subdued but recovering with improved tourism numbers
8 The Military Build-up Why is it happening?: Okinawa When?: Has been held up, could be Expected numbers for build-up: Original: US$ 10.3 Billion, could be $20Bn Personnel build-up: Was 8,000 plus families now 5000 with 3000 on rotation Water and wastewater, health facilities, ports, airfields, general infrastructure Family/non-military needs
9 Business Opportunities (1) Technical Services: engineering, marine repairs and supplies/equipment, airconditioning, energy-efficiency etc Processed food including dairy Wines including fruit wines Meat (from US approved abattoir) Seafood Hotel Supplies and Equipment
10 Business Opportunities (2) Education and Training Health Services Tourism: Car rentals, non-tourist tours, outbound, ex-pats, souvenirs Energy-efficient products Souvenir Items: Food and non-food with Guam packaging Events Services
11 Names You Will See Hotels: Hilton, Hyatt, Outrigger, Nikko, Westin, Marriot Planet Hollywood Hard Rock Café TGI Fridays Tony Roma s Outback Steakhouse ABC Stores from Hawaii
12 The Competition US suppliers shipping from West Coast Asia: China, Japan, SE- Asia Many suppliers ignore this market: too small
13 Getting your goods and services there Damien Swain: Alpha Cargo United Airlines direct service Shipping through Freight forwarders
14 Air Freight 4 Departures a week Max Weight per piece = 100kg Max Dimensions per piece = 100cm x 100cm x 82 cm Larger consignments via Brisbane
15 Sea Freight FCL Schedule ex Brisbane day transit LCL Schedule ex Brisbane day transit
16 Other Aussies there ANZ Bank (Citizens Security Bank) Smithbridge Various Agencies
17 Market Entry Strategy Consider a local partner Market to end buyers but sell to wholesalers/distributors in Guam Use an Australian agent or consolidator US standards used: e.g. 115 volts/60hz Labelling: Nutritional content, imperial measures are used, safety warnings Get proper legal/accounting advice
18 Guam: Entry to Micronesia Establishing in Guam is good entry point to: Saipan (Cwth. of Northern Marianas) Republic of Palau Federated States of Micronesia (Chuuk/Truk, Pohnpei, Yap, Kosrae) Republic of Marshall Islands
19 Guam: Entry to Micronesia OPPORTUNITIES FOOD SUPPLY (THROUGH GUAM?) CONSULTING SERVICES EDUCATION & TRAINING RENEWABLE ENERGY/BIO-FUEL AIR-FREIGHT SERVICES AusAID-FUNDED PROJECTS TECHNICAL SERVICES INVESTMENT
20 Lighter Side: Bits and Pieces Time is same as Cairns/Townsville Measures are non-metric Drive on the wrong side of the road Proudly US citizens but culture emerging Chamorro English Aussies: speak slowly and not use slang Haole : Let them know you re an Aussie Can t vote for the President
21 Mission Details EOI s TAKEN FOR TROPLINKS TRADE MISSION October, 2013
22 Images of Guam
23 Questions?
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