The COVID-19 pandemic has had a significant impact on the economy of the United States Minor Outlying Islands (USMIs). The COVID-19 pandemic has had a profound impact on the economy of the United States Minor Outlying Islands (USMIs). The tourism sector, which is the primary source of income for many USMIs, has been severely affected.
Visitor arrivals have dropped dramatically, with some islands reporting a 90% decrease in arrivals compared to the same period in 2019. The closure of many businesses and the suspension of events have led to job losses and reduced economic activity in the USMIs. The pandemic has also led to a decline in remittances, which are a significant source of income for many USMIs.
The lack of direct federal aid and support has exacerbated the impact on the USMIs—as the islands are not part of the United States and do not receive the same level of assistance as states.
The tourism sector, which is the primary source of income for many USMIs, has been severely affected. Visitor arrivals have dropped dramatically, with some islands reporting a 90% decrease in arrivals compared to the same period in 2019.
The pandemic has exposed vulnerabilities in the islands’ overreliance on tourism and lack of economic diversification. Moving forward— efforts must be made to strengthen other sectors and reduce dependence on any single industry. One approach is to incentivize investment and job creation in areas like- renewable energy, technology and knowledge-based services that can generate new sources of growth.
Developing agriculture and aquaculture could also help enhance long-term food security and export potential, especially as climate change threatens supply chains. With proper R&D support and use of innovative farming techniques, some crops and fish varieties may thrive in the island environments. This would allow for more local production and import substitution.
On a community level, the crisis has highlighted the need for stronger social safety nets. Programs that provide unemployment insurance, skills training, small business relief and income support during downturns can help cushion the blow of external shocks on livelihoods.