This document was funded under Investment Grant Award Number 07 69 06320 awarded by the United States Department of Commerce’s Economic Development Administration. The information, points of view and opinions contained in this document are those of the author and do not represent the official position or policies of the United States Economic Development Administration. 1 TABLE OF CONTENTS ABSTRACT ............................................................................................................................................................. 5 EXECUTIVE SUMMARY ................................................................................................................................. 6 General Overview .................................................................................................................... 6 Key Findings ............................................................................................................................ 7 Proposed Projects .....................................................................................................................9 INTRODUCTION ................................................................................................................................................ 12 A. ORGANIZATION AND STAFFING ................................................................................12 B. THE PLANNING PROCESS .............................................................................................12 ENVIRONMENTAL ASSESSMENT ........................................................................................................... 14 A. GUAM OVERVIEW .........................................................................................................14 Physical Characteristics .................................................................................................14 Population .......................................................................................................................14 Socio-Cultural Profile .....................................................................................................15 Environmental Situation .................................................................................................16 Natural Resources ...........................................................................................................18 Natural Disasters ............................................................................................................18 B. ECONOMICS ....................................................................................................................19 Employment.....................................................................................................................19 Household Income and Per Capita Income ....................................................................21 Price Indicators ..............................................................................................................22 Gross Island Product ......................................................................................................23 C. PUBLIC SECTOR .................................................................................................................................. 27 Federal Government .......................................................................................................27 Military ...........................................................................................................................30 Compact Impact ..............................................................................................................31 Local Government ...........................................................................................................32 Education ........................................................................................................................33 Public Assistance ............................................................................................................34 Energy .............................................................................................................................36 Power ..............................................................................................................................37 Water and Sewer .............................................................................................................38 Roads...............................................................................................................................39 Airport Transportation....................................................................................................40 Seaport Facilities ............................................................................................................40 Housing and Land ...........................................................................................................41 Excess Federal Lands .....................................................................................................42 Investment Incentives ......................................................................................................43 2 Planning and Economic Development Activities ............................................................44 Capital Improvements Projects.......................................................................................46 D. PRIVATE SECTOR .............................................................................................................................. 46 Agriculture ......................................................................................................................46 Aquaculture .....................................................................................................................47 Fisheries ..........................................................................................................................47 Construction ....................................................................................................................48 Financial Institutions ......................................................................................................50 Healthcare.......................................................................................................................51 Retail and Wholesale Sector ...........................................................................................53 Telecommunications .......................................................................................................53 Tourism ...........................................................................................................................54 ECONOMIC DEVELOPMENT CHALLENGES AND OPPORTUNITIES……...........................56 A. SMALL ISLAND OPEN ECONOMY ..............................................................................56 Small Domestic Economy ...............................................................................................56 Open Economy ................................................................................................................57 Island Economy ...............................................................................................................57 B. LACK OF ECONOMIC DIVERSIFICATION .................................................................58 Tourism ...........................................................................................................................58 Military ...........................................................................................................................58 Local Economy................................................................................................................59 C. NATURAL RESOURCE ENDOWMENT ........................................................................59 D. MULTICULTURAL SOCIETY ........................................................................................60 E. UNINCORPORATED U.S. TERRITORY ........................................................................60 F. STRATEGIC LOCATION IN ASIA-PACIFIC .................................................................61 G. CONCLUSION ..................................................................................................................62 ECONOMIC DEVELOPMENT GOALS AND OBJECTIVES………………………………………..64 A. BACKGROUND ................................................................................................................64 B. GOALS AND OBJECTIVES .............................................................................................65 PRIVATE SECTOR AND COMMUNITY INVOLVEMENT……..…………………………………68 STRATEGIC PROJECTS………………………………………………………………....................................70 A. EDA POLICY INVESTMENT GUIDELINES .................................................................70 B. OVERVIEW OF INDUSTRIES AND DETAILS OF PROJECTS ...................................72 High Priority ...................................................................................................................72 Medium Priority ..............................................................................................................84 Low Priority ....................................................................................................................88 PLAN OF ACTION……………………………………………………………………………………………...93 PERFORMANCE MEASURES………………………………………………………………………………94 REFERENCES