Guam lawmakers press Visitors Bureau for results after $10 million airline-incentive appropriation; funds not yet received
November 10, 2025 | General Government Operations and Appropriations , Legislative, Guam
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HAGAT A, Guam — Lawmakers on the Guam Legislature's oversight committee on Monday pressed the Guam Visitors Bureau and its board to show measurable returns on taxpayer-funded airline incentives and to resolve personnel and governance questions that they said are hampering recovery.
Senator Luhan, chair of the Committee on Transportation, Tourism, Customs, Utilities and Federal and Foreign Affairs, opened the hearing by saying Guam's "tourism industry is fighting for its life," and he told GVB leaders the legislature expects accountability for the $10 million the 2026 budget set aside for airline incentives. "With these investments comes accountability," he said.
GVB President and CEO Regine Bisco Li told the committee the bureau is focusing on measurable outcomes and transparency. "As of 09/26/2025, Guam welcomed 546,227 visitors for calendar year 2025, a 1.8% decrease compared to calendar year '24," she said, and she outlined recent market trends: Korea remains the largest source market (about 47% of arrivals), Japan is rebounding with double-digit growth, Taiwan arrivals have more than doubled, and Philippine Airlines will launch direct Cebu'Guam service Dec. 16.
Why this matters: The committee tied its oversight to the $10 million in FY26 funds earmarked for airline incentives and asked what short- and medium-term returns the legislature should expect. GVB said it will rely on performance-based payouts and third-party verification of flights and manifests and reiterated that airline incentives in FY25 produced additional seat capacity.
What GVB told lawmakers
- Seat and incentive results: GVB said it helped restore roughly 129,000 incremental airline seats into Guam over the past year through co-marketing agreements and performance-based incentives. The bureau reported that a FY25 Korea air-service development program (accounting figures cited in testimony range from $3.1 million to $3.5 million) supported roughly 93,836 incremental visitor arrivals attributable to the incentive package.
- Economic impact and measurement: GVB cited a calendar-year-2024 estimate from Tourism Economics showing 739,000 arrivals produced about $1.1 billion in direct visitor spending, $1.4 billion in total economic impact and 151 million dollars in local taxes. The bureau said it has restarted exit surveys and will publish audited expenditure reports quarterly.
- Local events and destination work: GVB highlighted the Tumon night market (described as drawing about 3,000 visitors and residents each week and generating more than $1 million in vendor sales since launch) and said it had directed $800,000 in FY26 to destination-management activities including expanded visitor-safety officers and maintenance actions.
Board oversight, travel approvals and finances
Committee members asked whether the board or management controls travel approvals and individual expenditures. George Chu, chairman of the GVB board of directors, said the board approves budget-level and strategic expenditures; he said statutory changes in recent legislatures left discretion for day-to-day travel approvals with the president/general manager. "It is my understanding, yes, by law that the board should have the ultimate oversight and fiduciary responsibility for GVB," Chu said.
Several senators questioned GVB about publicly reported financial statements and accounting presentation. Chu cautioned that government fund accounting differs from private-sector GAAP and said financial statements can appear misleading without explanatory notes; the committee asked for reconciled, audited statements.
Status of the $10 million appropriation
Multiple senators asked whether the administration had released the $10 million the legislature set aside for FY26 airline incentives. GVB testified it has not yet received the appropriation but said its CFO and management were working with the Department of Administration on a drawdown schedule and that a "portion" has been discussed in connection with negotiations tied to Philippine Airlines service. GVB asked the committee for flexibility to use incentives across load-factor and route-development tools and promised quarterly public accounting of incentive disbursements and outcomes.
Labor, hiring and workplace concerns
Committee members raised questions about hiring and limited-term appointments (LTAs). GVB said it hired zero LTAs in FY26 to date and is moving to professionalize HR functions, recruit under merit-system procedures and phase necessary LTAs into classified positions where appropriate. Senators also reported receiving employee complaints about workplace climate; GVB said it instituted an anti-retaliation policy and that the CEO held one-on-one meetings with staff.
Return-on-investment and follow-up
Lawmakers and GVB staff discussed how to translate incremental visitor arrivals into fiscal returns (for example, gross receipts or business-privilege taxes). Committee members pressed for simple, public-facing metrics and for a potential "clawback" or mid-course corrective action if incentive funds do not produce projected outcomes. GVB said performance will be tracked weekly and quarterly with airport partners and that management would alert the committee early if targets were not being met.
What the committee directed next
Committee leaders told GVB to return for additional oversight as the FY27 performance-based budgeting process begins. The chair also said the committee would invite the Guam International Airport Authority (GIAA) to testify immediately after a short break so the legislature can examine coordination between the two agencies on airline incentives and route development.
Sources and caveats
All figures, quotes and policy descriptions in this report come directly from testimony and slides presented by GVB and comments from committee members at the Nov. 10 oversight hearing. Where GVB presented ranges or unaudited figures (for example, FY25 expense summaries), the bureau described them as unaudited and said detailed reconciliations will be published quarterly.
Looking ahead
Lawmakers signaled that FY27 budgets will be scrutinized under a performance-based model and that the legislature expects audited accounting of incentive spending and a clear set of deliverables tied to any future appropriations.
Senator Luhan, chair of the Committee on Transportation, Tourism, Customs, Utilities and Federal and Foreign Affairs, opened the hearing by saying Guam's "tourism industry is fighting for its life," and he told GVB leaders the legislature expects accountability for the $10 million the 2026 budget set aside for airline incentives. "With these investments comes accountability," he said.
GVB President and CEO Regine Bisco Li told the committee the bureau is focusing on measurable outcomes and transparency. "As of 09/26/2025, Guam welcomed 546,227 visitors for calendar year 2025, a 1.8% decrease compared to calendar year '24," she said, and she outlined recent market trends: Korea remains the largest source market (about 47% of arrivals), Japan is rebounding with double-digit growth, Taiwan arrivals have more than doubled, and Philippine Airlines will launch direct Cebu'Guam service Dec. 16.
Why this matters: The committee tied its oversight to the $10 million in FY26 funds earmarked for airline incentives and asked what short- and medium-term returns the legislature should expect. GVB said it will rely on performance-based payouts and third-party verification of flights and manifests and reiterated that airline incentives in FY25 produced additional seat capacity.
What GVB told lawmakers
- Seat and incentive results: GVB said it helped restore roughly 129,000 incremental airline seats into Guam over the past year through co-marketing agreements and performance-based incentives. The bureau reported that a FY25 Korea air-service development program (accounting figures cited in testimony range from $3.1 million to $3.5 million) supported roughly 93,836 incremental visitor arrivals attributable to the incentive package.
- Economic impact and measurement: GVB cited a calendar-year-2024 estimate from Tourism Economics showing 739,000 arrivals produced about $1.1 billion in direct visitor spending, $1.4 billion in total economic impact and 151 million dollars in local taxes. The bureau said it has restarted exit surveys and will publish audited expenditure reports quarterly.
- Local events and destination work: GVB highlighted the Tumon night market (described as drawing about 3,000 visitors and residents each week and generating more than $1 million in vendor sales since launch) and said it had directed $800,000 in FY26 to destination-management activities including expanded visitor-safety officers and maintenance actions.
Board oversight, travel approvals and finances
Committee members asked whether the board or management controls travel approvals and individual expenditures. George Chu, chairman of the GVB board of directors, said the board approves budget-level and strategic expenditures; he said statutory changes in recent legislatures left discretion for day-to-day travel approvals with the president/general manager. "It is my understanding, yes, by law that the board should have the ultimate oversight and fiduciary responsibility for GVB," Chu said.
Several senators questioned GVB about publicly reported financial statements and accounting presentation. Chu cautioned that government fund accounting differs from private-sector GAAP and said financial statements can appear misleading without explanatory notes; the committee asked for reconciled, audited statements.
Status of the $10 million appropriation
Multiple senators asked whether the administration had released the $10 million the legislature set aside for FY26 airline incentives. GVB testified it has not yet received the appropriation but said its CFO and management were working with the Department of Administration on a drawdown schedule and that a "portion" has been discussed in connection with negotiations tied to Philippine Airlines service. GVB asked the committee for flexibility to use incentives across load-factor and route-development tools and promised quarterly public accounting of incentive disbursements and outcomes.
Labor, hiring and workplace concerns
Committee members raised questions about hiring and limited-term appointments (LTAs). GVB said it hired zero LTAs in FY26 to date and is moving to professionalize HR functions, recruit under merit-system procedures and phase necessary LTAs into classified positions where appropriate. Senators also reported receiving employee complaints about workplace climate; GVB said it instituted an anti-retaliation policy and that the CEO held one-on-one meetings with staff.
Return-on-investment and follow-up
Lawmakers and GVB staff discussed how to translate incremental visitor arrivals into fiscal returns (for example, gross receipts or business-privilege taxes). Committee members pressed for simple, public-facing metrics and for a potential "clawback" or mid-course corrective action if incentive funds do not produce projected outcomes. GVB said performance will be tracked weekly and quarterly with airport partners and that management would alert the committee early if targets were not being met.
What the committee directed next
Committee leaders told GVB to return for additional oversight as the FY27 performance-based budgeting process begins. The chair also said the committee would invite the Guam International Airport Authority (GIAA) to testify immediately after a short break so the legislature can examine coordination between the two agencies on airline incentives and route development.
Sources and caveats
All figures, quotes and policy descriptions in this report come directly from testimony and slides presented by GVB and comments from committee members at the Nov. 10 oversight hearing. Where GVB presented ranges or unaudited figures (for example, FY25 expense summaries), the bureau described them as unaudited and said detailed reconciliations will be published quarterly.
Looking ahead
Lawmakers signaled that FY27 budgets will be scrutinized under a performance-based model and that the legislature expects audited accounting of incentive spending and a clear set of deliverables tied to any future appropriations.
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