STATE INVESTMENT OPPORTUNITIES
Fisheries
ap's vast marine area provides its greatest potential for development. The apparent opportunities are artisanal fishery within the 12-mile limit and large scale commercial fishing beyond it and within the Exclusive Economic Zone [EEZ]. Development of the latter will also create opportunities for shore-based activities to service the fleet and handle the catch.
The State fishery zone, between the shore and the 12-mile limit, is currently under-used. The potential for Yapese to expand fishery in this zone is constrained primarily by the character of the economy, in which the public sector crowds out the private sector by its dominance of the capital and labor markets. The higher earning potential of employment in the public sector attracts labor and skills, to the detriment of investment by Yapese in fishing. Policy reform to reduce the impact of the public sector and to encourage Yapese participation in fishing in this area are required to allow this potential to be realized.
The State's income from activities of foreign-owned fleets which operate beyond the 12-mile limit is limited to transshipment fees and the value of services provided to the fishing fleet. The fleet is licensed by the FSM Government, which retains the fees collected. The short term potential for increasing the value to the State economy lies mainly in negotiating with the FSM Government for distribution of part of the license fees to the State and in expanding the activities of the foreign fleet to increase fees.
The medium and longer term potential to expand the benefit accruing to Yap from fishing in the 12-200 mile zone lies in increasing, through some form of processing, the value added per unit of catch and in building the capacity to supply the fishing fleet with services, such as shore bases, ship repair and maintenance, net repair, provisioning and specialized processing such as loining.
There is considerable potential for increasing the harvest of fish from the inshore area. However, the inshore area requires careful management to ensure preservation of the micro-environment and of the stocks of fish within it.
Sector goal: The State Summit adopted for marine resources the goal: to manage through development, exploitation and conservation, the marine resources of Yap State in a manner that will provide the best possible economic and social benefit to the peoples of Yap both today and in the future.
Sector objectives: Achievement of the goal will mean using the marine resources more intensively and extensively to generate production, while ensuring that the resources can continue to support production. The State will aim to reach three objectives on the way to the sector goal:
| 1. | provide a framework within which the marine and fishery resources that will provide economic and/or social benefits can be identified and monitored. |
| 2. |
maximize the economic and social benefits of the State's marine and fisheries resources |
| 3. |
provide the structure to protect and conserve the marine and fisheries resources. |
Tourism
Tourism has grown steadily to become a significant contributor to output, employment and the balance of payments for Yap; there is room for further expansion. Yap offers tourists a lush tropical island group, highly regarded marine landscapes and a unique cultural heritage. The State possesses some of the world's best natural diving sites and abounds with various species of fish throughout the year.
An appropriate tourism "model" is critical to obtain the best value from the sector and to minimize negative effects on the State's environment and culture. Yap State has much to protect and is determined to promote the industry in a manner which preserves its natural and cultural heritage.
Few areas of the world offer the natural ecotourism experience available in Yap related to the sea. The many cove areas, the flora and the cultural heritage of Yap's society are also important. A tourism industry appealing to these interests could also help protect and preserve Yap's society and tradition. Areas are under restoration to preserve and introduce to visitors, Yap's history.
Sector goal. The goal for the tourism sector is: to develop sustainable means to increase the economic and social benefits of tourism and to increase the number of State visitors to 15,000 per year within the next five years.
Sector objective. The State Summit set four objectives to guide the sector on the way to its goal
| 1. | adequate and reliable infrastructure that can meet the demand and growth of the tourist industry |
| 2. |
a sustainable and fully functional private sector tourism operation |
| 3. |
effective marketing and promotion that will attract the targeted visitors to the state |
| 4. |
increased public awareness of the benefits, opportunities and requirements for tourism |
Agriculture
Agriculture in the State faces major constraints. A limited range of technical options for cropping, small local market, difficulty and cost of access to foreign markets and the dispersal of the population over many islands all militate against agriculture. The dominance by the public sector of the economy has crowded out the sector from funds, labor and skilled manpower. The forthcorning reduction of external funds will assist agriculture, as falling wages and reduction of the public sector workforce will encourage the people to take up opportunities in agriculture. Lower wages may encourage consumers to seek low-cost foods and to increase their subsistence activities.
Potential for expanding agriculture in Yap lies in three main areas. The first is to expand subsistence under traditional farming systems to produce surpluses [especially of fresh foods] to replace imports. The second is for production for export to regional markets, in other States of FSM and in neighboring countries. The third is to develop niche markets for selected export crops in developed countries which can be supplied by specialized production.
