Service industries dominate employment and accounted for
75% of GDP in 2002. Fisheries and agriculture had their
share reduced from just over 25% in 1992 to 14.2% in 2002,
but still employed 26% of the workforce. Coconuts are grown
for sale (copra); for their own consumption, bananas,
breadfruit, papaya and screw palm (which yield berry-like
fruits) are grown. Kopra accounted for 23.5% of exports in
2002 against 77.1% in 1992. Cultivation of seaweed began in
the mid-1980s and amounts to approx. 15% of export revenue,
while shark fines account for 5%. Otherwise, there is a
widespread animal husbandry of pigs and poultry. The state
fishing company was closed down in 1991 due to. strong
decline in catch, but sale of fishing licenses to Japan,
South Korea, Taiwan and the United States have become an
important source of revenue. In 2001, license sales brought
in approx. NOK 250 million, or five times as much as the
country's total exports.
Up to 1979, phosphate was extracted on Banaba (Ocean
Island) by the British Phosphate Commission, for export to
Australia and New Zealand. Phasing out phosphate mining,
which gave Kiribati about 80% of export revenue and 50% of
state revenue, has had a devastating effect on the country's
economy. Interest income from a reserve fund, established in
1956, remains an important source of income.
Tourism is an important source of income and constitutes
approx. 15% of the country's income. Since the turn of the
millennium, the island kingdom has had annual visits of
approx. 14,000 travelers, including over 4,000 tourists;
most from Asia. Kiribati had 200 hotel rooms at the turn of
the millennium, but a new hotel with nearly 150 rooms was
under construction at Kiritimati. Since 2001, Norwegian
Cruise Line has had weekly sailings from Honolulu to
Tabuaeran (Fanning Island).
countryaah, Kiribati's main trading partners are Bangladesh (receives
about 77% of Kiribati's export products), Australia, Japan
and Fiji. The country's limited exports and imports of most
products mean that the country has a permanent deficit in
the trade balance abroad.
Sales of fishing rights and transfers from Kiribatians
abroad are the main source of currency; about. 2000 works as
sailors on foreign ships. Kiribati has good fishing banks
within its economic zone and has sold fishing rights to
Japan, South Korea and Taiwan. Almost all of Kiribati's
production of seaweed and kelp is exported to Denmark.
Transport and Communications
The large distances make transport between the islands
difficult. Air routes link Tarawa to most of the outer
islands and to Tuvalu, Nauru, Fiji and Hawaii. The main port
city is Betio on Tarawa. Kiribati, Tuvalu, Nauru and the
Marshall Islands have since 1995 planned the establishment
of a joint regional airline.
The island kingdom has 670 km of roads that can be used
by motor vehicles.