STIL, in a joint venture with the CH Group (Portugal), were commissioned by the FSM Government through their Tourism Division within the Dept. of Resources and Development, to develop a sustainable tourism strategy that would position FSM as a more competitive tourist destination within the Pacific region and globally so as to achieve a more sustainable economic growth for FSM as a country. As a Compact of Free Association country with the USA, funding was received under the ARPA Act (2021) for Covid Recovery through the USA Department of Commerce’s Economic Development Assistance (EDA) program. Four distinct but complementary projects were completed:

• Review and Update of the National Tourism Policy 2015. The FSM Sustainable Tourism Policy 2026 to 2031 is fully aligned with the FSM Strategic Development Plan (SDP) 2024 to 2043 and the Pacific Sustainable Tourism Policy Framework 2021 to 2030. It serves as the FSM tourism sector’s primary implementation framework for achieving national development priorities. It also lays the foundation policy areas, principles and values to support the other three projects.

• Review and Update of the 4 x States Tourism Investment Plans 2015. The FSM States Tourism Investment Plans 2026 to 2031 identifies 16 sustainable tourism projects in 66 sites across the four island States of FSM (Pohnpei, Kosrae, Chuuk and Yap). These have been assessed using sustainable tourism criteria and recommended for funding using a range of identified funding sources, including grants, loans, equity or any combination of these.  

• Develop an FSM Tourism Destination Marketing Strategy. The FSM Sustainable Tourism Marketing Strategy 2026 to 2031 aligns with the FSM Sustainable Tourism Policy and the FSM States Tourism Investment Plans. It provides a clear, actionable roadmap for positioning FSM in the global marketplace, targeting qualified segments and building the internal capacity and infrastructure through digital marketing, a communications plan, risk management and air connectivity, required to deliver sustainable growth. The strategy synthesises a detailed market analysis, competitive benchmarking and an appraisal of FSM’s current tourism products, culminating in a set of strategic decisions and a monitoring framework.

• Develop an FSM Tourism Branding Strategy. The FSM Sustainable Tourism Branding Strategy was developed by building on the Unique Selling Points (USP), values, concepts and messaging outlined in the FSM Sustainable Tourism Marketing Strategy. Brand positioning to differentiate from competitors was built around remoteness, authenticity, diversity and sustainability values. Brand identity reflecting the cultural and natural essence of FSM was presented through a logo, taglines and colour graphics. Brand guidelines were developed for the different marketing channels.