Should Guam tourism turn its attention to the backpacker market?
- Admin
- 3 hours ago
- 3 min read
Former tourism chief says visitor industry must tap young budget travelers
By Mar-Vic Cagurangan
Gen Z and millennial travelers are heading in droves to Southeast Asian countries, the paradise for backpackers seeking low-priced accommodations and other budget deals.
The shifting tourism dynamics and the travelers’ growing inclination toward affordability make Southeast Asian destinations a formidable competition, according to Nathan Denight, former president of the Guam Visitors Bureau.
Guam typically targets family excursionists, business travelers, outdoor enthusiasts and cultural explorers. Guam was previously known as the shopping paradise in the Pacific, but the shopaholics have since restrained splurging, causing luxury brands to cease operations on island.
“We need to diversify ways to be sustainable. You can't just put all your eggs in one basket,” said Denight, now the vice president for marketing at GTA. “What are other segments we're not covering?”
He suggested that the industry consider tapping the young budget travelers, urging stakeholders to examine “what the competitors are doing” and “what we need to do for our tourism.”
While they may be bargain hunters, global tourism experts said the backpacker market is making a robust resurgence in the post-pandemic era and reshaping travel trends.
According to Growth Market's latest research, the global backpacker travel market size reached $220.4 billion in 2024, and is forecasted to reach $440 billion by the end of 2033.
"The primary growth factor driving this expansion is the increasing preference for experiential, affordable and flexible travel options among younger generations, combined with the proliferation of digital booking platforms and enhanced global connectivity," the report says.
Denight, however, acknowledged that Guam’s tourism infrastructure and industry landscape are not designed for low-budget travelers.
“We have more facilities to bring more business tourism, repeat tourism and corporate tourism. We have these beautiful properties like Dusit (Thani), the 400, 500-room towers,” he said at GVB’s recent forum that tackled the future of Guam tourism.
When Dusit Thani opened its doors in 2016—the first luxury hotel to open on Guam since 1999—industry stakeholders touted it as a new era for tourism, seeking to promote the island as “a first-class destination” for business and leisure travelers.
“I think that's an area where we need to kind of get a little bit more creative and diversify that scenario,” Denight said.
He mentioned Bali, for example, where bargain-priced hostels charge as low as $40 and accommodate “young people who hang out and meet other young people.”
The Market Growth report noted that one of the core growth drivers of the backpacker travel market is the rising demand for authentic and immersive travel experiences.
"Modern travelers, particularly millennials and Gen Z, are increasingly seeking opportunities to engage with local cultures, participate in unique activities, and explore off-the-beaten-path destinations," the report says.
Guam tourism has not recovered to the pre-pandemic level. Geopolitical tensions, Iran war and overall economic unpredictability across the world curb people’s ability to travel.
“We have some younger travelers who are, maybe, more adventurous. So if they're not affected by (economic uncertainty) and they can afford it, they would travel,” Denight said.
Historically, Japan had been Guam's top source market and the biggest spender. Economists said the yen has lost about a third of its value since the start of 2021, making it more difficult for Guam to regain Japan's pre-pandemic status.
While Guam may still appeal to business travelers, Denight said introducing the island to young travelers can, in the long run, build a pool of repeat visitors.
“We say, well, those young people don't have money. When you buy a car, your first car is not a top-of-the-line, but you later book your way up, right?” he said. “They get married and come back later. So we should kind of start with them and get people up.”
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According to the Office of Public Accountability's recent audit, visitor arrivals decreased by approximately 3 percent year‑over‑year in 2025, contributing to a revenue shortfall of about $5.7 million to the Tourism Attraction Fund relative to projections and forcing GVB to rebalance spending and to increase payables.
"Despite challenging factors, GVB implemented various strategies within individual markets to help sustain and grow visitor arrivals," OPA said.
In Japan, GVB's marketing initiatives target younger generations through TikTok-centric content and pop-culture pilgrimage initiatives, while significant resources are allocated to bridging regional access gaps by increasing charter flights from cities like Sapporo and Fukuoka.
"Ultimately, the increase in marketing expenses reflects a move for Guam to compete on experience rather than price, prioritizing high-value wellness and exclusive memory-making over heavy discounting to ensure long-term premium positioning in the Japanese market," OPA said.
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