The Guam Visitors Bureau is making payments to travel companies using marketing funds to help bolster the number of charter flights to Guam.

The visitors bureau paid $800,000 last year and budgeted $1 million this year, officials said.

During an informational briefing called by Sen. Dennis Rodriguez Jr.’s tourism committee Tuesday, GVB President Nathan Denight said the charter support program began in 2017.

He explained that to book a charter with an airline, a travel company must pay up front, anywhere between $40,000 and $100,000. The company then must guarantee every seat is sold.

“So, we wanted to provide marketing support for those flights,” said Denight, “to make sure that they're full ... and encourage them to do more flights.”

In 2016, there were roughly 100 charter flights that brought about 20,000 visitors to Guam, according to Denight. When the charter support program began last year, the number of charters climbed to about 200 and brought approximately 33,000 visitors to Guam, “an increase of 14,000 seats,” said Denight.

This year, Denight said GVB expects 350 charter flights will bring in 64,000 visitors.

The travel company applies for the financial support, and “then we provide the funds once the flight is completed,” he said.

In a phone interview after the informational briefing, Denight told The Guam Daily Post that GVB initially offered $5,000 for each charter flight in 2017; although he said that was negotiable and not every travel company received that amount. The charter support program cost GVB about $800,000 last year.

This year, Denight said, GVB budgeted $1 million for the charter support program and changed the compensation rate to “2,000 yen, roughly $20 per seat.” He said this year's charter support budget already has been exhausted.

During the hearing, several GVB officials defended the charter support program.

Nico Fujikawa, acting director of tourism research, pointed out that Delta Air Lines’ decision to pull out of the market and the reduced number of United Airlines flights from Japan to Guam has resulted in a loss of close to 200,00 airline seats.

“All the effort with the charters,” said Fujikawa, “is only to soften the blow.” He called it “a short-term solution.”

“It all boils down to air seats,” said GVB board Chairman Milton Morinaga. He said the charter support program is “a tourniquet to make sure we don’t lose the demand from Japan.”

“If we don’t go after the charter flights, the travel agent doesn’t have a means to send their tourists to Guam – they’re going to Hawaii,” he said.

“When we say charter support, it doesn’t mean we're paying for the whole charter,” said Bill Nault, GVB's Japan Marketing Committee chairman. “Our priority is to increase the seats and convince more airlines to fly to Guam.”

Denight told the Post that United’s announcement Tuesday that the airline is adding 20 additional flights from Japan to Guam in August is proof of the charter support program’s benefit.