Guam’s economy is entering a transitional phase marked by rebounding tourism, record defense spending and persistent workforce constraints, speakers said during the Guam Chamber of Commerce’s 2026 Economic Outlook Forum at the Dusit Thani Guam Resort on Jan. 15.
The Guam Chamber of Commerce’s 2026 Economic Outlook Forum, held Jan. 15 at the Dusit Thani Guam Resort Royal Ballroom, brought together chamber leaders and panelists, from left, Daniel Tydingco, board director, Guam Chamber of Commerce; Catherine Castro, president, Guam Chamber of Commerce; George Chiu, executive vice president, Tan Holdings Corp. and chairman of the board, Guam Visitors Bureau; Ernie Galito, immediate past chairman, Guam Chamber of Commerce; Ho Eun, chairman, Core Tech International and chairman, Korea Marketing Committee, Guam Visitors Bureau; Gary Hiles, chief economist, Guam Department of Labor; John Duenas, P.E., principal, Duenas Camacho & Associates; Michael Limtiaco, vice president, Pacific Unlimited; and Tae Oh, chairman of the board, Guam Chamber of Commerce.
Gary Hiles, chief economist for the Guam Department of Labor, said total employment in 2025 has surpassed pre-pandemic levels, driven largely by construction activity and recovering visitor arrivals.
Gary Hiles, chief economist for the Guam Department of Labor, presents economic data during the Guam Chamber of Commerce’s 2026 Economic Outlook Forum at Dusit Thani Guam Resort.
“Overall employment is now higher than it was before the pandemic,” Hiles said. “What’s driving that growth is construction, along with the gradual return of visitors.”
Construction employment has increased by more than 4,000 jobs, while visitor arrivals from Korea rose more than 45% year over year. Overall arrivals increased by about 30% in November. Despite the gains, Hiles said tourism activity remains below historical norms.
“We’re still only at about 50 to 60 percent of where we were before COVID,” he said. “To support further growth in hotels, retail, transportation and services, we’re going to need more workers.”
Hiles also pointed to record federal defense-related spending, with more than $1.3 billion in combined Department of Defense contracts and building permits issued in the most recent fiscal year, while cautioning that long-term planning remains critical amid global uncertainty, labor shortages and the sequencing of major construction projects. Michael Limtiaco, vice president of Pacific Unlimited, said Guam must use the current period of military-driven growth to strengthen the broader economy.
Michael Limtiaco, vice president of Pacific Unlimited, speaks during the Guam Chamber of Commerce’s 2026 Economic Outlook Forum at Dusit Thani Guam Resort.
“The military buildup is not forever,” Limtiaco said. “We have a window right now to build partnerships, diversify our industries and make sure local businesses are positioned to succeed long after the construction slows down.” Limtiaco said the military buildup is expected to continue for several more years before tapering off, underscoring the need to strengthen interconnected industries and partnerships capable of sustaining long-term growth beyond defense spending. mbj
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