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Tourism

The FSM offers a wealth of opportunities for visitors. All the States of the FSM boast a number of tourist attractions not found elsewhere in the Pacific. Chuuk Lagoon is the last resting place for the Japanese Fourth Fleet and has a very high rating for scuba diving. The old deserted city of Nan Madol, which was built on a series of islands off Pohnpei, still fascinates all those who visit, as does the amazing stone money of Yap which still features strongly in the traditional exchange of property such as land.

Access to the FSM is provided by a good air transportation network with direct flight connections by Continental Air Micronesia from the US mainland via Honolulu and Guam. Similar facilities exist for tourists from Japan, Korea, Australia and elsewhere in Asia. All state airport terminal facilities have been upgraded to international standards and support regular flights by Boeing 727-100 and 727-200 aircraft.

Hotel accommodation in the FSM remains tied to small local enterprises not fully geared to the needs of international tourists. However, hotels such as the Continental Hotel in Chuuk, the Village Hotel in Pohnpei, and the Manta Ray Bay Hotel in Yap do cater to the more exacting needs of the discerning traveler. Expansion and upgrading of existing accommodation is proceeding in all states, together with the construction of new hotels, which will increase the number of rooms from 336 to 592 in the near future.

Tourism contributes significantly to the FSM economy in terms of employment, income generation, and foreign exchange earnings. The sector also possesses great potential for growth and will continue to be a major focus for planners at both national and state levels.

There has been a marked increase in visitor arrivals to the FSM, most so in 1989 when a 40% increase over the 1988 figure of 14,676 was recorded. Given the 1990 figure of 23,171, the trend is expected to continue upwards. Historically the tourist market has been dominated by Americans, who account for 60% of all arrivals, followed by Japanese at 25%.

All four states of the FSM have their own tourism offices which provide a wide range of information to tourists and assist in their travel plans within each state.