Government of the Federated States of Micronesia

FSM Tourism Promotion Initiative Progress Report

Palikir, Pohnpei (FSM Information Services): June 24, 2009 - As the second tranche funds have been expended for the National Tourism Promotion Initiative, the FSM Department of Resources and Development (R&D) has submitted a report to the Congressional Committee on R&D. The report explains that the Government of the FSM received $500,000 under the Private Sector Development Program loan from the Asian Development Bank with $128,000 previously appropriated for Tax Reform and a balance of $372,000 appropriated under Public Law 15-67 for economic development projects and for other purposes.

The specific usage of the fund as stated in the legislation is as follows:

  1. Energy Policy Development and Administration $ 86,000

  2. Tourism Promotion Initiative $123,000

  3. National Trade Policy Facilitation $163,000

The FSM Tourism Unit was tasked to implement the initiative of promoting tourism for the Nation under the ADB 2nd Tranche Scheme. The funds were used to do the following projects:

  1. Economic Diplomacy Initiative in conjunction with Foreign Affairs

  2. Tourism Statistical Information

  3. Promote Investment for Sustainable Tourism Development

In January 2009, the FSM Tourism Unit was able to contract a representative in the Japan market to promote FSM as a tourism destination and provide quarterly market reports to the Tourism Unit. This is a one year contract that will end on December 31, 2009. This representative is housed at the FSM Embassy in Tokyo and provides ground support to the State Visitor Bureaus' activities during trade shows and seminars in Japan. The goal of this position is to promote FSM and reverse the declining number of visitors from Japan to the FSM. He is also tasked to provide marketing information and data to help direct FSM's marketing strategy and policy development for the Japan market.

The tourism statistical information funds are being used to streamline the current Visitors & Resident's information sheet and incorporate it into a new visitor's arrival card which will provide all necessary tourism statistical data for inbound passengers. It will also be used to develop an exit form to capture statistical data for outbound passengers. A working group has been established and is in the process of identifying the suitable forms to incorporate all legal requirements for immigration, customs, and quarantine purposes and provide the necessary tourism data.

The funding for promoting investment for sustainable tourism development has the FSM National Tourism Unit working with the State Visitor Bureaus to identify and conduct a SWOT Analysis of the FSM Tourism industry and its trends, to promote tourism investment by the private sector. This will identify potential tourism products for development and create opportunities for communities and local businesses to cater toward the tourist market. This is ongoing.

The total expended from the funds as of May 15, 2009 is $43,000, leaving a balance of $80,000 to continue the progress for this Tourism Promotion Initiative.