BY DANIEL M. PEREZ
Journal Staff
TUMON, Guam — The Guam Visitors Bureau achieved an unmodified, clean opinion for its fiscal 2025 financial audit with zero findings, marking more than 10 consecutive years of compliance despite facing a $5.9 million decrease in its net position.
The independent audit, conducted by Ernst & Young LLP and overseen by the Office of Public Accountability, found no material weaknesses or compliance issues. However, the bureau closed the fiscal year with a cumulative net position of $15 million, down from $20.9 million in fiscal 2024, driven by severe drops in legislative funding.
Total revenues plummeted by $9.3 million, falling from $33 million to $23.7 million. This contraction was primarily caused by an $8.3 million reduction in Government of Guam appropriations from the Tourist Attraction Fund, which suffered a $5.7 million shortfall due to a 3% decline in visitor arrivals.
While revenues shrank, total operating expenses grew to $30 million from $27.4 million in the prior year. The expansion was propelled by professional services, personnel costs, and a new $4.6 million airline incentives program aimed at restoring seat capacity in South Korea and Taiwan.
The incentive program also caused the bureau's accounts payable to skyrocket by 200%, increasing by $6.1 million to a total of $9.0 million. As of Sept. 30, 2025, accrued payables for the airline programs reached $2.7 million for South Korea and $1.1 million for Taiwan, exacerbated by late vendor invoice submissions.
Régine Biscoe Lee, president and CEO of GVB, praised her team and noted that the clean rating shows the organization takes pride in being good stewards of public resources. Lee said that the fiscal management underscores the bureau's "unwavering commitment to transparency and accountability to the people of Guam and tourism stakeholders."
Beyond its balance sheet, the bureau faces a major legal challenge following a lawsuit filed in June 2026 at the District Court of Guam. The complaint alleges sexual harassment against a former general manager, alongside federal and local violations by the bureau, its board, and its chairman, seeking more than $60 million in damages. Legal counsel reported that the financial impact cannot be reasonably estimated at this time.
For additional information, see GVB faces $61.5 million federal lawsuit alleging executive misconduct, institutional failures. mbj
Journal Staff
TUMON, Guam — The Guam Visitors Bureau achieved an unmodified, clean opinion for its fiscal 2025 financial audit with zero findings, marking more than 10 consecutive years of compliance despite facing a $5.9 million decrease in its net position.
The independent audit, conducted by Ernst & Young LLP and overseen by the Office of Public Accountability, found no material weaknesses or compliance issues. However, the bureau closed the fiscal year with a cumulative net position of $15 million, down from $20.9 million in fiscal 2024, driven by severe drops in legislative funding.
Total revenues plummeted by $9.3 million, falling from $33 million to $23.7 million. This contraction was primarily caused by an $8.3 million reduction in Government of Guam appropriations from the Tourist Attraction Fund, which suffered a $5.7 million shortfall due to a 3% decline in visitor arrivals.
While revenues shrank, total operating expenses grew to $30 million from $27.4 million in the prior year. The expansion was propelled by professional services, personnel costs, and a new $4.6 million airline incentives program aimed at restoring seat capacity in South Korea and Taiwan.
The incentive program also caused the bureau's accounts payable to skyrocket by 200%, increasing by $6.1 million to a total of $9.0 million. As of Sept. 30, 2025, accrued payables for the airline programs reached $2.7 million for South Korea and $1.1 million for Taiwan, exacerbated by late vendor invoice submissions.
Régine Biscoe Lee, president and CEO of GVB, praised her team and noted that the clean rating shows the organization takes pride in being good stewards of public resources. Lee said that the fiscal management underscores the bureau's "unwavering commitment to transparency and accountability to the people of Guam and tourism stakeholders."
Beyond its balance sheet, the bureau faces a major legal challenge following a lawsuit filed in June 2026 at the District Court of Guam. The complaint alleges sexual harassment against a former general manager, alongside federal and local violations by the bureau, its board, and its chairman, seeking more than $60 million in damages. Legal counsel reported that the financial impact cannot be reasonably estimated at this time.
For additional information, see GVB faces $61.5 million federal lawsuit alleging executive misconduct, institutional failures. mbj
