According to Journal files, the $159 military per diem for Guam has not changed since 2009, when then-Congresswoman Madeleine Bordallo sought an increase.
As of March 1, the per diem for the island increased to $179, with the news quickly spreading through the hotel industry on March 4.
The General Services Administration is responsible for setting per diems in the mainland. In Guam the responsibility of the per diem falls under the Department of Defense, according to Journal files.
Guam’s tourist figures remain low with January total arrival figures at 65,771 – 14.9% of last January’s numbers and 54.6% lower than January 2019.
But in the meantime, annual military exercises are bringing thousands of U.S. personnel to the island – beyond the island’s military accommodation capacity.
The Hilton Guam Resort & Spa hosts military personnel on its property on an ongoing basis.
Sheila Baker, commercial director at the Hilton; told the Journal on March 4, “We are grateful to the advisory panels and rate review teams/committees of DTMO (the Defense Travel Management Office) for their efforts and appreciate the per diem increase.”
She said the increase has multiple pluses.
“This is a positive step in aligning Guam’s rates with the true cost of travel, giving government travelers greater flexibility in accommodations, while also benefiting the local economy.”
Baker also drew attention to where such a beneficial initiative might go next.
“The meal per diem remains unchanged, despite the rising cost of dining on the island. Given Guam’s similarities with other island destinations, I hope to see future adjustments that bring our per diem rates closer to those of Hawaii,” she said.
“Additionally, adopting seasonality-based rates, similar to Puerto Rico and Washington, D.C., would better reflect market conditions and provide a more balanced approach to travel expenses throughout the year.
“As a remote destination with higher import costs and limited alternatives, Guam faces unique challenges that should be considered when setting per diem rates,” Baker said.
Mary P. Rhodes, president of the Guam Hotel & Restaurant Association; told the Journal on March 4 that GHRA has been closely working with Guam’s elected officials and military partners to advocate for increases in the per diem for Guam.
Rhodes expressed gratitude “for recognizing Guam as needing an increase based on its market value compared to their counterparts in the CNMI, Hawaii and other territories like Puerto Rico and the U.S. Virgin Islands.”
While Guam had not seen an increase in the lodging per diem since 2009, she said the island has seen slight increases in meals and incidentals through the years.
“The $20 increase in lodging signifies a positive move for Guam, which is fair to both hoteliers and the government after a study on market conditions that reflects the average daily rate from a trailing 12-month period, minus 5%,” she said.
“The increase comes at an important time when hoteliers continue to experience escalation in operational costs, utilities, good, services, and inflation amid a weak tourism recovery.”
The association will remain vigilant, Rhodes said.
“GHRA will continue to make reviews of the per diem rates a priority, which includes lodging, meals and incidentals. Per diem does not include taxes, therefore any increases will in turn benefit the government with additional tax revenue.”
In related news, Tinan and Rota will also benefit from their per diems being raised to match Saipan’s. (See below) mbj
Military per diem rates without meal allowances
Location Start date
Guam per diem: $179 March 1
Northern Mariana Islands - $161* March 1
Hawaii per diem range: $199 to $354 Feb/March 2023
Puerto Rico per diem range: $129 to $245 June 2024
U.S. mainland: $107 (302 locations) October 2024
Sources: U.S. Department of Defense, General Services Administration
*Saipan’s per diem remains unchanged, Tinian and Rota’s per diem as of March 1 have been raised from $145 and $130 respectively.