The re-opening of Samoa’s borders in late-2022 kickstarted the country’s recovery from the COVID-19 pandemic. This offers an opportunity to rebuild sustainably its tourism, maritime transport, and fisheries sectors. Samoa’s ocean resources can also augment its resilience to future shocks such as climate change. Through an analysis of Samoa’s economic trends and environmental pressures, institutional set-up and policy tools, as well as financing landscape, this report identifies opportunities and challenges for Samoa’s ocean economy to drive sustainable and resilient development. The Samoa Ocean Strategy offers a blueprint for such a pursuit, but there remain gaps and impediments. To address them, the report provides several cross-cutting and sector-specific policy recommendations to accelerate Samoa’s transition to a sustainable ocean economy.
Towards a Blue Recovery in Samoa
Abstract
Executive Summary
Samoa’s ocean economy is both a source of vulnerability and opportunity for its sustainable development
Samoa, a small island developing state, has an economy closely tied to the Pacific Ocean. The pursuit of a sustainable ocean future is central to Samoa’s development vision. This is reflected in the country’s medium and long-term national development strategies, which recognise the potential of several ocean-based industries for economic growth. The government understands that harnessing ocean resources is vital for sustainable economic development and improving the livelihoods of its people. It also acknowledges that the ocean represents a source of cultural identity and spiritual connection for many Samoans and their communities.
Samoa’s structural characteristics pose several challenges to the development of its ocean economy. Like many Pacific small island developing states (SIDS), Samoa has a small land mass and population, a predominantly maritime environment, and is remote from major markets. Compared to other developing countries, it faces specific challenges, including a lack of economic diversification, lower economies of scale, pressure on resources, and higher costs of goods and services.
The COVID-19 pandemic and climate change have exposed the vulnerability of Samoa’s ocean economy to external shocks and natural disasters. This vulnerability partly stems from its heavy reliance on the tourism industry, which represents a quarter of Samoa’s gross domestic product (GDP), while the rest of the ocean economy accounts for only 3% of GDP. Samoa’s ocean-based sectors are also particularly exposed to natural disasters, the intensity of which is expected to rise due to climate change. Not only do these disasters cause severe disruptions in the short run (e.g. for maritime transport) but they also leave scarring effects (e.g. due to diminished tourist appeal).
Weak management of ocean-based economic activities can also lead to a degradation of Samoa’s marine environment through waste and land-based pollution, overexploitation of resources, poorly planned development activities, and the introduction of invasive species. For example, approximately 10% of Samoa’s annual plastic consumption is estimated to leak into the ocean. In the absence of adequate safeguards, the tourism sector can be a driver of this leakage. Likewise, overfishing can lead to the deterioration of the health of fish stocks. The sustainability of much of Samoa’s fish stocks has not yet been assessed, leaving ambiguity over the extent of overfishing in Samoa’s exclusive economic zone.
A sustainable ocean economy has the potential to improve Samoa’s environmental, economic and social outcomes. Given its linkages to other ocean economy sectors, the tourism sector is the key to Samoa’s recovery. It could advance the sustainable management and use of ocean resources, provided that the development of the sector aligns with the country’s long-term economic, social and environmental objectives. The economic contribution of the fisheries sector, which is small despite its importance for Samoans’ livelihoods, would benefit from a shift towards value-adding activities and import substitution. There is also room to leverage the potential of other ocean-related sectors, such as the shipping industry that could capitalise on Samoa’s central Pacific location. Emerging sectors, like renewable energy, marine biotechnology and aquaculture, also present new economic opportunities, although existing constraints would have to be addressed to attract investment.
Samoa’s policy framework provides a solid foundation for sustainable ocean management, but links with development and sector strategies can be improved
The 2020 Samoa Ocean Strategy (SOS) lays the groundwork for a coherent approach to ocean governance. The SOS is well-placed to tackle Samoa’s climate and environmental stressors, and it presents an opportunity to address gaps, redundancies, and contradictions in Samoa's ocean governance. Through extensive stakeholder consultations involving governmental ministries and agencies, local communities, representatives of civil society organisations, and development partners, the SOS has achieved broad-based legitimacy and support, and established clear guidelines and objectives for the sustainable management of ocean resources.
However, policy coherence and successful implementation of the SOS require better integration with national development and sectoral plans. While the SOS acknowledges the ocean's socioeconomic value, it does not fully articulate a vision for harnessing the ocean economy for resilient and inclusive long-term growth. Samoa’s development aspirations are more directly captured by its national development plans and certain sector-specific planning instruments, which also guide budget allocations and development partners’ priorities. This underscores the need to strengthen the connections between these planning instruments, and subsequently ensure proper funding of the SOS and a holistic view of the ocean economy.
Aligning scarce financial resources and ocean-related investment needs is crucial for unlocking the potential of Samoa’s ocean economy.
Samoa’s current financial landscape reflects the difficulties faced by SIDS, i.e a lack of economic diversification and limited opportunities for international trade and investment. Samoa is heavily dependent on remittances and official development assistance (ODA), which constituted respectively 28% and 12% of its financial mix in 2021. It also faces challenges in attracting private investment. Although Samoa's public debt is modest compared to other SIDS, its heightened vulnerability to natural disasters and external shocks significantly increases its risk of external and overall debt distress. This, in turn, restricts Samoa’s fiscal capacity for large investments in the ocean economy.
Existing financing opportunities could bolster the sustainable development of the ocean economy. The government’s ability to raise financing and attract investment is hindered by structural limitations, but there is room to more effectively direct ODA to promote ocean economy-related investments. Novel tax instruments (e.g., sustainable tourism levies) and innovative financing mechanisms, such as blue bonds and insurance schemes, could also be introduced to finance ocean conservation and increase linkages between economic, social, and environmental considerations of the sustainable use of ocean resources.
Successful implementation of the SOS hinges on its capacity to secure sufficient financial and technical support. While Samoa has made notable strides in developing a comprehensive approach to ocean resource management, active collaboration with development partners and the private sector will be crucial to mobilising the necessary funding and expertise for the development of its ocean economy.
