New startups are thriving on Guam but some business institutions are closing amid economic pressures
- Admin
- Sep 15
- 4 min read
By Ron Rocky Coloma
In the Department of Revenue and Taxation’s Business License Branch, hopeful prospective entrepreneurs queue with applications in hand. Some eye storefront dreams. Others envision e-commerce startups.
The department issued 2,440 new business licenses in fiscal 2025, as of June, down from 2,572 in FY 2024 and 3,010 in FY 2023, according to Carlina Charfauros, spokesperson for DRT.
Meanwhile, 154 business licenses were canceled during that period. In May, the Guam Chamber of Commerce listed more than 25 businesses, including retail stores, salons, coffee shops, bar and restaurants—many of which were institutions on Guam—that have closed shop in the post-Covid years. The chamber pointed to these closures to underscore the fragility of Guam’s business sector as it fought for the rollback of the business privilege tax.
In August, more business institutions shut down. Tony Roma at the Royal Orchid Hotel closed its doors on Aug. 31 after operating on Guam for 40 years. Caronel Inc., the exclusive retailer of name-brand wristwatches on Guam, closed its Caronel Watch Center at the Dusit Place on Aug. 31. Its two other shops, Time & Style at GPO in Tamuning, will close its doors on Oct. 31, and the Rolex Boutique at Dusit Place on Dec. 31.
But new small businesses popped up this year, including the Tumon Skewer House, Allegory Coffee Shop in Barrigada, the Tangantangan Grill at Leo Palace in Yona, Manga Pika at Tumon Bay Center, Happy Mart’s second location in Harmon, SKN Beauty Boutique and Bread Bar by Okayama Kobo, both at Micronesia Mall. The largest addition to Guam’s business landscape is Don Don Donki in Tamuning, which opened its doors last year, along with new retail shops and dining establishments.
According to DRT, activity peaked in FY2023, dipped in FY2024 and is climbing again this year. Still, with cancellations remaining low, the narrative is one of cautious recovery. Guam’s economy remains anchored by hospitality, retail and construction sectors.
Charfauros emphasized that DRT does not track business types or conduct trend analysis. “DRT has certain data on businesses, but we don’t necessarily track trends or conduct analysis,” she said.
While DRT remains focused on licensing operations, the bigger picture lies with agencies developing and fostering economic strategies.
The Guam Economic Development Authority, for instance, is advancing efforts to diversify Guam’s economy beyond its longstanding reliance on tourism and U.S. military spending.
The agency lists emerging sectors like agriculture, aquaculture, data centers, high-tech manufacturing, healthcare services, pharmaceuticals and recycling among its development priorities. GEDA’s qualifying certificate program that offers tax incentives and export support seek to attract and retain businesses.
On the employment front, the U.S. Census Bureau’s 2022 Economic Census, released in June 2024 by the DOL’s Bureau of Labor Statistics, provides a snapshot of Guam’s business structure.
Data shows Guam had 3,412 employer establishments in 2022, with the greatest concentration in Tamuning (1,616 establishments), followed by Dededo (501) and Hagåtña (393). The sectors employing the most workers were accommodation and food services (11,996 employees), retail trade (8,447) and construction (6,774).
Tourism-related businesses, such as hotels and restaurants, as well as construction remain a dominant force in the local economy based on the latest available statistics in 2022 from federal and local agencies. Fresh data on Guam business trends are currently unavailable, limiting the ability to say whether newer sectors are expanding faster or if established industries are shrinking.
There is also a roadmap toward modernization. DRT plans to transition toward a fully digital licensing process that bridges other GovGuam systems and improves online service access. “We are also looking to eventually transition to a wholly-digital or electronic-based process that interfaces with applicable GovGuam agencies. Improving our online presence would also provide the business community an alternative to receive continuing services,” Charfauros said.
The budget measure passed by the 38th Guam Legislature pegs the BPT revenue at $351 million, which is $39 million short of the $390 million projected in the original bill submitted by the executive branch. The budget act cuts the BPT from current 5 percent to 4.5 percent effective Oct. 1, and again down to 4 percent by Oct. 1, 2026, to reflect the pre-2018 level. As of this writing, Gov. Lou Leon Guerrero has yet to act on the spending measure.
As for revenue tracking, DRT doesn’t attribute business privilege tax revenue to new businesses, and no trend data is readily available at the licensing level.
Charfauros pointed to monthly tax revenue reports and GRT-1, GRT-2 and GRT-3 forms, as well as publications from the Bureau of Budget and Management Research. That suggests the data is accessible, but the picture requires collaborative digging.
Digital platforms emerged as a strong catalyst. “Digital platforms provide more efficiency, reach and rapid information sharing, which means owners or managers are able to focus their attention on other matters,” Charfauros said.
Notably, Guam law does not yet permit the collection of BPT on e-commerce, highlighting a gap between technology and regulation.
Charfauros reminds business owners that tax compliance remains vital, even if their business isn’t earning revenue. “File your taxes in a timely manner. Even when there has been no revenue received, a BPT return must still be filed monthly. BPT is due on the 20th of every month,” she stressed.
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