With the planned indefinite closure in December of Samoa Tuna Processors cannery, the American Samoa Power Authority has already looked at the impact it will have on its own operations.

Tri Marine International announced last week the closure of the canning operation of its American Samoa plant effective Dec. 11. STP has a workforce of about 800 and it remains unclear as to how many employees will be affected by the indefinite closure.

Although canning operations will be suspended, Tri Marine said it would continue to operate STP as a logistics hub for the Tri Marine Group. Additionally, Tri Marine is currently evaluating alternatives for the STP facility including outright sale, preferably to a strategic buyer that would minimize job loss.

Since Tri Marine’s announcement, many in the community have wondered about the closure, although said to be temporary and for an unknown period of time, how it would affect ASPA operations and revenues.

Responding to Samoa News questions, ASPA executive director Utu Abe Malae pointed out for fiscal year 2016, STP represented approximately 6% of ASPA's revenues.

“Depending on the extent of STP's operations after the discontinuation of canning operations, ASPA will have to make up between $1.2 to 1.8 million of annual non-fuel cash flow from revenue measures, cost reductions or combination thereof,” Utu said.

According to ASPA data, in FY 2016 the total bill for STP comes to over $3.23 million (monthly average of nearly $270,000) — with:

•     electric service the highest at over $2.19 million — monthly average of over $183,251;

•     water at $633,675 — monthly average of about $52,800;

•     wastewater at $65,614 — month average at $5,467; and

•     solid waste at $340,276 — month average $28,356

Asked how revenue loss from STP is factored into planned ASPA projects, Utu said that while it has no impact on grant funded projects; ASPA is determining the impact on projects funded by local funds. “Some locally funded projects might be delayed but it is unlikely that any will be canceled,” he said.

According to the executive director, ASPA expects to be the “tail-end of a ripple effect” as residents who were laid off and businesses, which service STP, adjust their spending.

“As a result, ASPA expects its accounts receivables to increase slightly over the coming months,” Utu said. “ASPA also expects to see operational costs like shipping and fuel increase due to the drop off in STP customer.”

Asked about other businesses coming to the rescue with the local economy expected to face a downturn with STP closure, Utu said, “We suggest taking a complete all-fronts approach to promoting tourism. We have more and more visitors from cruise ships and must make their experience so positive they will return by plane to stay longer.”

“We must continue improving the immigration system by making it more welcoming and more customer friendly for tourists. We are cleaning up our already beautiful islands,” he said adding that the Health Department has already stepped up the enforcement of food handling standards at eateries.

He noted that American Samoa has a beautiful national park and that there is the famous annual Tisa’s Tattoo Festival and other events to attract more visitors to the territory. Additionally, travel to the Manu’a islands will be made easier with the arrival sometime next month of the new multimillion-dollar MV Manu’atele.

“Why not arrange for air charters as did Palau for travelers from Asia?” he suggested. “There are other opportunities of course, but tourism is the first industry that comes to mind because the basic infrastructure is already in place.”

American Samoa Visitors Bureau Executive Director David Vaeafe explained to a Chamber of Commerce meeting in May this year what American Samoa has to offer as a visitor’s destination.

He said, “our unique selling points” include Fa’a Samoa — a living culture; the natural environment, including the National Park of American Samoa, National Marine Sanctuary, the Manu’a islands and “our rich American history”.