BUSINESS OPPORTUNITIES IN GUAM Graham Poon G.K. Consulting For TropLinks Inc. 09 July, 2013
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
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
Guam & Micronesia
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
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
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
The Military Build-up Why is it happening?: Okinawa When?: Has been held up, could be 2015-2020 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
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
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
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
The Competition US suppliers shipping from West Coast Asia: China, Japan, SE- Asia Many suppliers ignore this market: too small
Getting your goods and services there Damien Swain: Alpha Cargo United Airlines direct service Shipping through Freight forwarders
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
Sea Freight FCL Schedule ex Brisbane 22-25 day transit LCL Schedule ex Brisbane 22-25 day transit
Other Aussies there ANZ Bank (Citizens Security Bank) Smithbridge Various Agencies
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
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
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
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
Mission Details EOI s TAKEN FOR TROPLINKS TRADE MISSION October, 2013
Images of Guam
Questions?