GVB:

Learn to be a RULE MAKER

Presented by XYZ Truelife

Nan YANG Xiaomeng YAN Zhao JIN Ye ZHU

 Agenda

Whet
her
WHETHER GVB is a rule maker

When Why WHY does GVB need to learn to

be a rule maker

GVB WHO should be the rule makers

WHAT is the goal of these rules

How Who
HOW to make rules to achieve
the goal
What
WHEN to make rules
 Introduction
Attractiveness Down Decision Process Slow
GUAM OCCUPANCY RATES,1988-2007
100
90 89
90 84 86
79 82
80 76
71
70 63 62 63 62 62 65
60 58 56 58 57 58
50
50
40
88 90 92 94 96 98 00 02 04 06
19 19 19 19 19 19 20 20 20 20
Occupancy(%)

Market Saturated Lack of a distinctive image

GUAM PRODUCT LIFE CYCLE Resort

Introductory Growth Stage Maturity Decline Stage

Stage Stage

Guam 2007 Total Exotic Familiar

Market
Sales Guam

Location
 WHETHER GVB is a rule maker
Market Player v.s. Rule Maker
The current situation: What GVB should be:
Market Player of the Rule Maker of the Industry
Industry

Interest groups

Power & Influence GVB

GVB

Whet
Why Who What How When
her
 WHY does GVB need to learn to be a rule maker

WHY they need GVB internal structure

to learn • Infrastructure is a mess
• Different interest groups within
Issue 1

Internal
Structure 1 Inefficiency in the decision process

2 Low creativity and huge resistance to change

Issue 2

External Vicious 3 Decisions do not consider the local characteristics

Cycles
4 Interest groups dominate the board

The structure of GVB organization need to be reformed

Whet
Why Who What How When
her
WHY does GVB need to learn to be a rule maker?

WHY they need

External Vicious Cycles
to learn Low Consumption
per visitor
Issue 1

Internal Low added Lack of

value activities
Structure

Tourism group too

Issue 2 concentrated

External Vicious
Cycles Unattractive to Japanese
people from culture
other countries dominates

We need to make rules to break these two circulations!

Whet
Why Who What How When
her
 WHO should be the rule makers?
Criteria Members should be independent Board should be able to absorb
from interest groups opinions from the people

Redesign
Reform the structure Recruit the talents Change the operation

Structure Governor
Order
Propose Info
Board of Directors Hearing

General
Manager
monitor
Deputy Gneral
Manager

Executive Bodies

Whet
Why Who What How When
her
 WHAT is the goal of these rules?
Category Example Features

• Historical significance
Alternatives
Historical places Beijing, Xi’an • Culture rich and well
preserved
• Preservation is
Criteria necessary
Scenic spots Hainan, Bali
• Commercialization also
Selection
important
• Rich in gambling,
nightlife and even strip
Heavens of Las Vegas,
clubs
Conclusion indulgence Macau
• Serve the need of
wealthy individuals

What kind of tourism destination we want to be?

Whet
Why Who What How When
her
 WHAT is the goal of these rules?
Option1:  Guam’s current Option 3 : Heaven
Historical place strength of indulgence
 Resented due to  Losing the strength
Alternatives  Emerging in Guam
WWII because of substitution
 Not fully  Cater to the needs
 American military
base commercialized of the wealthy
Criteria  Strategic importance  Need to develop  Increase revenue
to US national related industries and per tourist
Selection
defense services  Investment
 Politically sensitive Option2: Scenic constraint
Spot
Conclusion

Whet
Why Who What How When
her
 WHAT is the goal of these rules?
Our Strategy
Alternatives
• Option1:
Historical is NOT a right way for Guam

Criteria
Selection
• Option2 & Option3:
Short-term: Develop scenic-related activities and
charge fees
Long-term: Integrate the indulgent activities with the
Conclusion scenery view

Whet
Why Who What How When
her
 With the goal achieved, we can…
The Change of External Cycles
Increasing
Consumption per
visitor

High added Growing Kinds

value of activities

Diverted tourism
groups

Attractive to
culture
people from all
Diversified
over the world

Change the vicious cycles to positive cycles

Whet
Why Who What How When
her
 HOW to make rules to achieve the goal

Old New New Step 2:

Our current position
Mkt. Mkt. Old service for new
Market is saturated
Old Low growth potential customers:

(What kind of customers

Service Promotion and marketing
Diversify the tourist base
New
Service

are attracted)
Step 1: Step 3:
New Service for old New service for new
customers: customers:
Market

New activities; After step 1 and 2 are

New policies; finished, this become
Old New industries natural
Old New
Service
(What kind of services should the industry provide)
Whet
Why Who What How When
her
 HOW to make rules to achieve the goal
Step 1: new services for
Steps break down • Use government policies to…
•

Step 1 • Integrate tourism-related industries;

Service • Charge fees for new activities;
• Use rental fee waiver, tax policies to encourage
gambling and other entertainment industries
Step 2 • Encourage foreign direct investment
Market •Promote luxuries shopping tours

Whet
Why Who What How When
her
 HOW to make rules to achieve the goal
Steps break down Step 2: old services for new customers
• Attract non-Japanese tourists;
• Use • Target tourists in higher income
Step 1
government brackets;
influence • Change signs into
Service
to… English+Japanese+Korean;
• Partner up with Korean travel
agents;
Step 2 • Hong Kong, Singapore have potential
• China: a problem because of Sino-US
Market relations
• Launch promotion campaigns
overseas

Whet
Why Who What How When
her
 Timeline
2008 2009 2010 2011
New Services
Integrate industries

Charge fees

Tax and rental policies

Encourage FDI

Promote luxuries shopping

New Markets
Higher-income tourist

Change road signs

Korean travel agents

Hong Kong and Singapore

China Prospect remain to be seen

Overseas campaigns

Whet
Why Who What How When
her
 Conclusion

Issues What we’ve done

WHETHER • Realize the role of rule maker, rather than market player

WHY • Identify the problems of the organizational structure

• Identify the vicious cycles
WHO • Board members should be independent of interest groups
• Board should hear people’s voices
WHAT • Next-level scenic spots
• Heaven of indulgence
HOW • New services
• New markets
WHEN • Timeline
THANK YOU…

Q&A
Backup-Guam
 Backup-image of Koreans
Resort

Thailand Australia
Hawaii
Bali

Exotic Familiar

Japan Guam Jeju

China

Philippines

Location