Blog Entry 19 – Sixteenth October 2008

CURRENT POSITION: 14 40 S  -  172 14 W

HEADING: 259T

SPEED: 9.3 kts

JACK:

Hi Folks,

We cleared the picturesque Pago Pago harbour this morning and I must say it was sad to leave the characters we met over the past few days even the taxi drivers were unhappy if we didn’t choose their cab for transport.  The name Speedbird spread quickly no doubt through our method of acknowledgement for services rendered, i.e. a few bucks in a handshake.  It was interesting when requesting permission to leave the harbour by VHF radio to the port captain graciously invited us back, wished us well and a safe trip.  He then answered a request from a French warship that he had failed to acknowledge despite their calling for 30 mins. 

General synopsis of conditions etc. at Pago Pago confirmed there are some 60000 residence spread over 7 islands with a total land mass of 36.1 square miles, of this of course two thirds is mountainous terrain and unusable for building.  In the year 2000 the median age was 21 years.  The residence are heavily supported by Uncle Sam with a per capita income as at year 2000 of 5000 dollars.  Primary income sources are from canned tuna, government services and retailing.  The tax structure mirrors the US except for territorial tax and most importantly investment incentives.  These generous incentives include a minimum 4% tax rate on personal income, 34% of so much of the taxable income as exceeds 75000 but does not exceed 650000, 5% excise tax on items imported for commercial resale, no gross receipts, property, export or value added tax.  The governor of American Samoa can grant exemptions from local tax on some or all taxes from up to 10 years for the establishment or expansion under the industry incentives act.  Foreign sales corporations established in the territory may receive an eleven-year exemption of corporate taxes dividend distributions, custom duties and other taxes.  There is no requirement to maintain an office or agent or to hold shareholders meetings in the territory.  There is no restriction on the repatriation of funds etc. 

So when I tell you there is already one McDonalds established near the airport and another McDonalds under construction in the port area i.e. 2 for just 60000 people you will see why they are they establishing themselves in Samoa.  With cruise boats coming back to the area and a previously used cable car allowed to fall into disrepair and a mountain overlooking the port a great opportunity exists for a casino and resort.  Also noted, roads and new buildings are already being constructed by Australian companies. 

The government being aware of their alliance of the fading tuna industry currently employing some 2000 people they will go all out in assisting tourist orientated ventures.

We expect to arrive in Fiji on the morning of the fourth day at sea it is now happy hour so we will catch up later.