“We will see a slow down in travelers between the Samoas and also see family assistance to Samoa from those working at the canneries dwindle or stop completely,” inter-Samoa businessman, Avamua Dave Haleck told the Samoa Observer.
American Samoan-based Avamua is head of South Pacific Express airlines which serves the inter-Samoa route.
The minimum wage rises of 50 cents until it has reached $7.50 an hour, has been blamed for the imminent closure of one of the two canneries in American Samoa, Samoa Packing.
“The minimum wage issue if it continues to increase will affect everyone in American Samoa,” said Avamua.
“I understand that approximately 80 percent of the workforce at the local canneries are from Samoa so if the canneries cease operations, Samoa will also feel the effect.”
The governor of American Samoa, Togiola Tulafono, has hinted his administration is close to finalizing a deal for a company to take over Samoa Packing, Radio New Zealand International reports.
The cannery will close at the end of this month but Togiola Tulafono said he has been working to convince off-island companies to come to American Samoa.
The governor has declined to name the companies, but says things look good for the territory.
He expects when things are finalized with a new company, operations at Samoa Packing will only be closed for two weeks before they are revived.
Apia-based Natural Foods is one of the companies which investigated the possibility of taking over the cannery.
What has become of its interest in the cannery could not be established.
