The evolving regulatory and management context of Tongan tuna and bottom fisheries has received relatively little attention with respect to licensing policies and implications. The Ministry of Fisheries of the Kingdom of Tonga is interested in developing a basis for pricing fishing licences, and requested FAO through its FishCode Programme to provide external assistance to address the question. Tonga is approaching a crossroads in the development of its fisheries sector. A generous incentive and concession package by Government has created considerable momentum in tuna longline activity. Fish are now the largest single export from the Kingdom. However, expansion of the industry faces severe infrastructure constraints. Granting substantial numbers of new longlining licences without resolving these constraints could have serious negative effects on all commercial fisheries in Tonga. The study reviews various options for dealing with near-term Government revenue needs. These include: (a) revising the basis for calculating Export Tax from an imputed price (in TOP) to actual invoiced prices (in US dollars); (b) increasing licence fees on foreign vessels from current levels by 10 or 20 percent; and (c) imposing a fee for the annual licence endorsement issued by the Secretary of Fisheries. The endorsement fee option would generate somewhat greater revenues than the other two and is relatively consistent with the notion of Government capturing an increased fraction of any resource rents from the longlining industry. Vertical and horizontal diversification of local companies will bring new risks and opportunities that Government can either encourage or discourage. The development of a strategic vision for the sector may be the greatest long-term challenge facing fisheries management in Tonga.