III. O ptions for I mproving K iribati ’ s F ishing L icense R evenues 1
1. Fishinglicensefees are a key income source for Kiribati. Fishinglicensefees, relative to total revenue or GDP, peaked in 2001 and have been on a declining trend since. 2 However these remain high at above 30 percent of total revenue (excluding grants) and around 20 percent of GDP, and are among the highest in Pacific Island countries (reflecting Kiribati’s relatively large and productive Exclusive Economic Zone (EEZ)).
Kiribati - FishingLicense
This Selected Issues paper focuses on recent developments with Kiribati’s Revenue Equalization Reserve Fund (RERF). The paper also examines fiscal aspects of climate change, and considers options for improving fishing license fees, which remain an important source of revenue. It also analyzes recent developments and the outlook for remittances to Kiribati, which is another important source of external revenue and brings important economic benefits, such as reducing poverty and stabilizing national income.
Ms. Shari Boyce, Mr. Sergei Dodzin, Mr. Xuefei Bai, Ezequiel Cabezon, Mr. Fazurin Jamaludin, Mr. Yiqun Wu, and Ms. Rosanne Heller
Fishinglicensefees are a major source of revenue in several Pacific island countries (Kiribati, the Marshall Islands, Micronesia, and Tuvalu). In 2013 the fee earnings ranged from 15 percent of total revenues in the Marshall Islands to 65 percent in Kiribati. Despite the large fishery-derived wealth, PICs still have enormous untapped marine resources and further efforts are under way to properly leverage and manage them. First, the ratio of the income PICs receive by selling fishing rights to foreign companies to the value of the fish catch is very low