Guam

Guam occupies the strategic center of the Western Pacific—closer to Manila than to Honolulu, to Tokyo than to Los Angeles. This geography made the island a Spanish colonial possession for over three centuries, a Japanese occupation target in 1941, and an American military bastion ever since recapture in 1944. The indigenous Chamorro people, present for at least 4,000 years, have navigated each imperial transition while preserving cultural identity within imposed political structures.

Spain claimed Guam in 1565 and used it as a provisioning station for Manila galleons. American forces seized the island in 1898 during the Spanish-American War. Japan invaded on December 8, 1941 (across the date line from Pearl Harbor), instituting a brutal occupation that killed over 1,000 Chamorros and destroyed the two largest villages during the 1944 American recapture. The Organic Act of 1950 made Guam an unincorporated territory with American citizenship for all Chamorros.

The military defines modern Guam's economy. US forces hold approximately 29% of the island's land. Andersen Air Force Base and Naval Base Guam host strategic bombers, submarines, and the infrastructure for projecting American power across the Pacific. Defense spending constitutes the primary economic driver, injecting billions of dollars annually into construction, services, and employment.

This dependency intensified in 2024-2025. The Marine Corps relocation from Okinawa—5,000 troops moving to new Camp Blaz—began with first arrivals in December 2024 and will continue through subsequent years. Defense construction projects for Navy, Air Force, and missile defense systems generate sustained federal expenditure. President Trump's national security emphasis suggests further investment.

Tourism provides the second pillar. Prior to the pandemic, visitors from Japan and South Korea filled hotels and shopping centers that catered specifically to Asian tourists seeking American territory experiences. GDP peaked at $6.36 billion in 2019 before COVID-19 restrictions collapsed arrivals. Recovery has been uneven: by 2025, arrivals remained at only 46.2% of 2019 levels. Currency dynamics hurt—the strong dollar makes Guam expensive for Japanese tourists facing yen depreciation.

GDP reached $6.91 billion in 2022, driven by exports, private investment, and consumption. Real GDP grew 5.1% that year. Unemployment fell to 3.2% by June 2025, down from 4.0% a year earlier. Federal spending continues boosting economic recovery even as tourism lags.

The island exists in geopolitical tension. Proximity to China, Taiwan, and North Korea makes Guam strategically critical—and potentially vulnerable. Missile defense investments reflect this exposure. Meanwhile, Chamorros debate political status: remaining a territory, seeking statehood, or pursuing independence or free association.

By 2026, Guam will likely see continued military construction and personnel arrivals while tourism recovers toward pre-pandemic levels. The island that empires fought over remains central to American Pacific strategy—and dependent on decisions made in Washington rather than Hagåtña.