BOG Chief Economist Joseph Bradley Blames Devaluation of Yen for Reduced Spending from Japanese Tourists

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Guam – The devaluation of the yen is to blame for the reduced number of visitors from Japan and the reduced spending from tourists, according to Joseph Bradley.

Joseph Bradley is Bank of Guam’s Chief Economist and Business Continuity Officer and was the guest speaker at the Rotary Club of Tumon Bay meeting this afternoon. 

Bradley says that visitor arrivals may be high but our economy still hasn’t quite caught up. However, Bradley explains that in the future, despite the reduced spending from tourists we’re seeing right now, we will see more tourists coming to Guam.

“Once the Japanese get used to the higher yen prices for dollar denominated goods, that spending should return. Also as their [Japan] economy expands in reaction to the lower yen, which will stimulate their export industries, more jobs will be created, higher income will be created. They’ll be better able to travel to Guam,” said Bradley. 

Bradley also spoke about other events that have impacted Guam’s economy such as the postponement of the military build up and how the climbing increase rates will affect the housing industry. 

“The postponement [of the military build up] affected a lot of people here, especially the firms that came to Guam to take advantage of the huge construction contracts…contracts that didn’t really develop. It affected our local construction because the big guys are undercutting the bids on what would normally be a local construction project” said Bradley.