The Western and Central Pacific Ocean (WCPO) is home to the largest tuna
fishery stock in the world. However, Pacific Island members of the Western
and Central Pacific Tuna Commission (WCPTC) argue that their share of the
economic rent from the tuna catches taken out of the Pacific region is very
small, being on average only about 6% of the total net benefit, when
compared to the share earned by Distant Water Fishing Nations (DWFNs).
Kiribati is one of the Pacific Island Countries (PICs), which relies heavily on
its fishery for its economic development and sustainability. Kiribati earns 40%
- 50 % of its government revenue from fisheries access fees paid by DWFNs
for tuna caught in the the Kiribati EEZ. The Government of Kiribati (GoK)
believes that Kiribati could get greater benefit if they develop their own
domestic tuna fishery.
This study uses Cost-Benefit Analysis (CBA) and SWOT Analysis to
investigate whether domestication of the tuna fishery is the right move for
Kiribati or not. The CBA reported in this thesis adapted a model developed by
Campbell (2004) to investigate and evaluate fisheries policy in Papua New
Guinea (PNG). However the model in this thesis is reflective of the situation
and case of Kiribati. In analyzing the different options identified in this study,
the CBA indicated negative (-) NPV(s) for the medium-sized vessel option
and positive (+) NPV(s) for the large-sized vessel option. The SWOT analysis
however, complemented the CBA by further investigating the tuna
domestication options in the economic, social and business and business
environment of Kiribati. The SWOT analysis indicated that the existing
situation and business conditions in Kiribati appears to favor the small to
medium sized vessel options which are less risky than the large purse seine
vessel option.