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Regal Carnation Hotel Case

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Regal Carnation Hotel Case
Regal Carnation Hotel (Guam)
Case Analysis

Case Introduction The island of Guam is an unincorporated territory of the United States located in the Philippine Sea. Ruled by the Spanish until 1898, Guam was ceded to the United States and briefly occupied by Japan between 1941 and 1944. Of strategic significance during the Second World War, more than 18,000 Japanese and 1,800 U.S. marines died in the U.S. retaking of the island. Following the war, the Guam Organic Act of 1950 provided for U.S. citizenship among residents and legitimized a continuous U.S. military presence on the island. Currently Guam is home to 140,000 civilians and 7,000 military personnel that live on and around several U.S. Naval, Coast Guard, and Air Force bases. Not surprisingly, Guam’s economy depends heavily on these Department of Defense installations as well as tourism and locally owned businesses. In addition, similar to a state, Guam receives U.S. government aid. Looking forward, Guam, along with the rest of the Mariana Islands, is being prepared to be the westernmost military training range for the U.S. and key military hub that will further allow U.S. military power to be projected via air, land, sea and undersea. In addition to new force upgrades, relocation of U.S. Marines from Okinawa, Japan, slated to have begun this year, will further expand the military population of the island. As such, the amounts of total land that the military will control or tenant may grow to or surpass 40% of the entire landmass of Guam. This astounding percentage does not include private land ownership by military personnel and support services. Beyond the U.S. presence, tourism takes center stage in Guam. With the climate on Guam maintaining a tropical 80-90ºF throughout the year, and numerous resorts and hotels propagated along the beachfront, it is no surprise that it has gained the reputation as Japan’s Miami Beach. Guam’s tourism industry can be traced to 1962 when travel

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