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(Tourism) Sector ON YOUR MARK, GET SET...TOURISM’S TAKE-OFF IN MICRONESIA TAKE-OFF SET...TOURISM’S GET MARK, YOUR ON On Your Mark, Get Set... Tourism’s Take-Off in Micronesia Francis X. Hezel, SJ HEZEL EAST-WEST CENTER EAST-WEST On Your Mark, Get Set... Tourism’s Take-Off in Micronesia FRANCIS X. HEZEL, SJ The East-West Center promotes better relations and understanding among the people and nations of the United States, Asia, and the Pacific through cooperative study, research, and dialogue. Established by the US Congress in 1960, the Center serves as a resource for information and analysis on critical issues of common concern, bringing people together to exchange views, build expertise, and develop policy options. The Center’s 21-acre Honolulu campus, adjacent to the University of Hawai‘i at Mānoa, is located midway between Asia and the US mainland and features research, residential, and international conference facilities. The Center’s Washington, DC, office focuses on preparing the United States for an era of growing Asia Pacific prominence. EastWestCenter.org Print copies are available from Amazon.com. Single copies of most titles can be downloaded from the East-West Center website, at EastWestCenter.org. For information, please contact: Publications Office East-West Center 1601 East-West Road Honolulu, Hawai‘i 96848-1601 Telephone: 808.944.7197 [email protected] EastWestCenter.org/Publications ISBN 978-0-86638-280-9 (print) and 978-0-86638-281-6 (electronic) © 2017 East-West Center On Your Mark, Get Set...Tourism’s Take-Off in Micronesia Francis X. Hezel, SJ A tourist photographs Chuukese children playing at the shore near a World War II–era wreck. Photograph by Tim Rock. Table of Contents Executive Summary ..................................................................................................................... v Introduction ................................................................................................................................. 1 Tourism: Hope for the Have-nots ......................................................................................... 1 History of the Three Island Groups.......................................................................................2 Separate Political Paths ........................................................................................................4 What Follows ..........................................................................................................................5 References ..............................................................................................................................5 Notes ......................................................................................................................................6 Chuuk Tourism .............................................................................................................................7 Chuuk Today ...........................................................................................................................7 Chuuk: A State in the Federated States of Micronesia .......................................................8 Beginnings of Tourism ...........................................................................................................9 Early Surge in Chuuk ...........................................................................................................10 Attraction of Wreck Diving ...................................................................................................11 Later Tourism Development in Chuuk ................................................................................ 14 The Trappings of Tourism Today ......................................................................................... 15 Gauging Chuuk Tourism ...................................................................................................... 16 Tourism: The National Picture ............................................................................................ 17 Future Promise and Challenge ............................................................................................ 18 Conclusions .......................................................................................................................... 19 References ........................................................................................................................... 20 Notes .................................................................................................................................... 21 Tourism in Palau ........................................................................................................................23 Palau’s Tourism Today .........................................................................................................23 Palau: Background ...............................................................................................................24 Early Beginnings of Tourism ...............................................................................................25 Tourism Takes Off ................................................................................................................27 A Decade of Rapid Growth: 1985–1994 ............................................................................ 29 Start of the Taiwan Tourist Trade ....................................................................................... 30 Slump in the Asian Market: 1998–2003 ............................................................................33 Boom Years ..........................................................................................................................35 The Chinese Market .............................................................................................................37 iv | EAST-WEST CENTER Impact of Tourism on Palau’s Economy .............................................................................37 Some Keys to Success ....................................................................................................... 40 The Future ............................................................................................................................ 41 References ........................................................................................................................... 43 Notes ....................................................................................................................................45 Marianas Tourism ......................................................................................................................46 Introduction......................................................................................................................... 46 Background ..........................................................................................................................47 Seeds of Tourism (1968–1975) .......................................................................................... 48 Laying the Foundation (1975–1979) .................................................................................. 49 Rapid Expansion (1985–1997) ............................................................................................53 Peak Years of Tourism ..........................................................................................................55 First Slump (1997–2002) ....................................................................................................57 Second Slump (2006–2011) ..............................................................................................58 On the Road to Recovery (2012–Present) ........................................................................ 60 The Future ............................................................................................................................ 61 References ........................................................................................................................... 62 Notes ................................................................................................................................... 64 Conclusion .................................................................................................................................66 Distance Run after a Half Century ..................................................................................... 66 Key Factors in Tourism Development .................................................................................67 Prospects for Tourism in the Pacific ...................................................................................73 Likelihood of Expansion ......................................................................................................76 Impact on the Island Economy ...........................................................................................77 References ............................................................................................................................78 Notes ....................................................................................................................................78 Acknowledgments .....................................................................................................................79 About the Author ...................................................................................................................... 80 ON YOUR MARK,
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