Guam Case

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Case: Guam’s Visitors’ Bureau

Assignment Questions:
1. What internal constraints does GVB face in becoming a more powerful player? Following are the internal constraints that Guam Visitor’s Bureau faced, * Guam as an organization had a large size of Board of Directors, i.e. 13 to be precise; * This huge size of the committee and formal lines of communication resulted in slow decision making. * Lot of external factors determined the selection of members in the Board of Directors, i.e. GHRA(Guam Hotel and Restaurant Association), GTF (Guam Tourist Foundation), JGTA (Japan Guam Travel Association), etc. * GVB had a huge organizational structure, lot of silos existed in the organization. * Employees with limited or experience were hired in GVB which resulted in low productivity and negative feedback to GVB. * General Managers job in GVB was a very difficult as it required aligning various interest groups together. The various interest groups that existed in coherence to GVB were: GTF, JGTA and GHRA. * It was very difficult for GVB to find skilled labour and they had to import labour from Asian countries. * One of the major problems with GVB was that, most of the employees were either too young (starters in the industry) or very old (in the phase of retirement). 2. Conduct a resource analysis of Guam’s resources.

Resource analysis of Guam Resources:-
a) Human Resources
a. Very limited skilled and unskilled labour, need to get from Asian countries b. Very young staff was sent to Guam for exposure or very old staff before retiring was sent. This caused poor service. c. International hotels & Restaurants never sent their top staff to Gaum. b) Transportation facilities

d. Tourism was overly dependent on Airlines companies which sometimes stopped their services owing to low business. e. All the consumer items for visitors were imported from far places by ship, which in turn made up everything on Guam costly. Also Very few cruise ships docked. f. Due to buses running services only on Guam Island timing, visitors use to opt for rental cars.

c) Natural Resources
g. Rich in scenic beaches which could attract tourists. h. The weather on Guam was very pleasant which made it an ideal location for tourists. i. It was also considered as a desired destination for diving. j. Waterfalls, mountains and caves were added advantage.

3. Assess the stakeholders in the distribution channel, their positioning and the level of integration in Guam’s tourism industry. The hotels and restaurants association, tourism foundation, the travel agents association are the various stakeholders which come under the distribution channel

a. GHRA – An association of hotels & restaurants in Guam to help the members by addressing their issues. The hotels believed that they provided superior service and customers had a great regard for their hotel specific product. b. GTF – A tourism foundation to promote awareness tourism industry to community and also improve relationship with the tourist market through community services and destination enhancement projects. c. JGTA – An association comprised of travel agents. They accounted for 85% to 90% of all visit arrivals from Japan to Guam. Korean and Chinese tour operators were also purported to consolidate their GUAM booking through JGTA. They were positioned excellently that they were able to negotiate the best prices to the customers.

The American government had a system in place to look into the functioning of GVB. The five governor appointees, two legislative committees and six elected members were members of the board of directors. Every member of the GVB board also headed a committee or used to oversee a function of the organization. Members of GHRA, GTF and JGTA also held key positions in GVB board of directors which ensured that their interests were taken into account...
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