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supply is unreliable and unsafe for drinking and much of the water supply comes from individual water catchment systems. Kolonia has Pohnpei’s only centralized sewerage system, but its main sewage treatment plant is inoperable, and raw sewage often finds it way directly into Pohnpei’s surrounding waters. The island has no trash collection service, and solid waste disposal is confined to an unsightly dumpsite located near the airport. Basic modes of communication on Pohnpei such as telephone, radio, television, and postal services are available, but limited.

5.0 Tourism Resources Assessment

Pohnpei’s attractions include cultural, archaeological and historical sites as well as natural attractions. Pohnpei’s most well-known historic attraction is Nan Madol, and other historic and cultural sites can be found in Kolonia. The island’s natural attractions include remote mountain wilderness areas for hiking, waterfalls for sightseeing, mangrove ecosystems for scientific study, and ocean reefs for diving. Carvings made from mangrove wood are one of the island’s most distinctive crafts. Over 1,200 varieties of fish are found in the waters off Pohnpei providing an important source of protein for local consumption, an added attraction for divers, as well as favorable prospects for commercial sport fishing. Although subsistence farming is prevalent island-wide, commercial farming is limited; nevertheless, tourism exports such as pepper and coconut products like soap and shampoo are successful. Pohnpei’s attraction sites are still largely undeveloped, enabling opportunities for alternative, specialized forms of tourism such as ecotourism. Yet, at the same time, its historical attractions are poorly maintained, and a majority of natural attractions are inaccessible. They will require considerable development in terms of access, restoration, preservation, and protection. Another constraint is the level and quality of tourism-related services which will need upgrading in order to attract more visitors and increase their length of stay. Facilities related to recreation and leisure are also limited on Pohnpei. In 1992, there were no tennis courts, swimming pools, or golf courses to complement the hotel facilities. The Pohnpei Tourist Commission listed 16 restaurants, 13 tour and recreational services companies, and 11 car rental agencies.

6.0 Economic Assessment

The economic benefits associated with visitor expenditures include the generation of employment, income, export earnings, and government revenue. Visitor expenditures in 1992 was estimated to be $5.2 million with direct and indirect tourism employment estimated at 730 jobs. After taking into account import leakage, the total visitor spending was estimated to be about $3.1 million. The $5.2 million in visitor expenditures accrues to the Pohnpei state government through the payment of income, gross receipts, import, hotel room, and airport departure taxes. Total national and state government revenue generated by 1992 visitor expenditures was estimated to be about $470,000. Although tourism amounted to only about 2.3 percent of Pohnpei state’s gross domestic product in 1989, it has considerable potential for expansion. In 1992, it was the second largest contributor to exports and accounted for a cumulative foreign investment of $10.14 million, representing 41.5 percent of the total. Tourism development also involves economic costs including the risk of unproductive government investment in projects

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