From 10 July to 8 August 2025, the United States Pacific Air Forces conducted Resolute Force Pacific (REFORPAC)—the largest contingency response exercise ever undertaken in the region. Spanning over 50 locations including Guam, Hawai‘i, Japan, and international airspace, the exercise involved more than 350 aircraft and 12,000 personnel.
Although a military operation, REFORPAC created considerable economic activity across Pacific host locations, particularly in Palau, Guam, and Micronesian partner nations. Local businesses in logistics, catering, fuel supply, hospitality, medical support, and transport services experienced significant demand. In Palau, hotels reached full capacity for several weeks, charter flight operators recorded strong bookings, and local vendors secured new procurement deals for equipment and supplies.
Palauan economic officials noted that these defence-related contracts delivered a welcome boost, offering economic resilience during a period of subdued tourism. While not conventional trade, the military expenditure supported thousands of jobs, many within under-resourced small and medium-sized enterprises. Authorities anticipate a 10 to 15 per cent rise in the export value of services and goods in areas linked to the exercise during this quarter.
Strategic commentators interpret REFORPAC as part of a broader move by the United States to reinforce logistics and support bases across the Pacific. For host governments, it provides an avenue to negotiate long-term upgrades to ports, airstrips, and support infrastructure—areas where local businesses could contribute through service delivery, maintenance contracts, and employment.
Even regional fisheries logistics experienced uplift, as military flights utilising Palauan airspace and ports led to increased cargo handling and demand for fuel and aircraft maintenance.
For Pacific-based firms, the exercise also served as a valuable networking platform. Defence contractors from Australia, Japan, and New Zealand engaged with local counterparts, exploring commercial opportunities in security, civil aviation, and resilience-focused infrastructure.
Though military in purpose, REFORPAC 2025 has triggered a cascade of short-term economic benefits for Pacific host economies. The impact extends well beyond defence, reaching into sectors such as logistics, trade services, hospitality, and infrastructure consulting—highlighting the broader commercial ripple effects of large-scale regional operations.
Main photo: U.S. Air Force Air National Guardsmen of the 113th Wing park multiple F-16 Fighting Falcons at Joint Base Pearl Harbor-Hickam, Hawaii, during exercise Resolute Force Pacific 2025, July 11, 2025. REFORPAC is part of the first-in-a-generation Department-Level Exercise series, designed to combat airpower in the Indo-Pacific region at speed and scale, and conduct operations in a contested, dynamic environment. (U.S. Air Force photo by Senior Airman Mark Sulaica)
