The president of the Federated States of Micronesia Peter Christian says access and regional inter-airline agreements are holding back tourism.
Mr Christian has been in talks with the South Pacific Tourism Organisation to improve air access and develop the Chinese tourism market.
Mr Christian said the Micronesian region needed transportation options which would be conducive to sustainable tourism.
The chief executive of the SPTO Chris Cocker said the FSM had a lot of potential for niche markets, which could allow for a balance between development and conservation.
Of the estimated four million tourists visiting Pacific Islands countries last year, about 24000 visited the FSM.