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Palau is a remarkable country that is located 550 kilometers to the west of the Philippines and perched above Indonesia.

The Kyushu-Palau Ridge’s 340 coral and volcanic islands make up the archipelago, which is home to some of the most breathtaking underwater landscapes you’re ever likely to see.

Palau more than makes up for its small landmass with untouched coral, gorgeous beaches, Second World War remnants (on land and under the water), and off-road jungle adventures. These islands are home to about 18,000 people, with the major population centers being Babelthuap (Babeldaob), Koror, Malakal, Arakabesan, and Peleliu.

In terms of overall visitors in 2020, Palau received 18,400, placing it 194th in the world.

In terms of total visitor numbers, it is clear that smaller countries consistently outperform larger countries. The outcome is a far more comparable image when the number of tourists is compared to Palau’s population. Palau was 45th in the world with 1.0 tourists per resident. It came in third in Micronesia.

Approximately 123.00 million US dollars were produced by the tourism industry alone in Palau in 2017. This is equivalent to 82 percent of all international tourism revenue in Micronesia and 56.47 percent of the country’s gross domestic product.

International tourism and number of arrivals

Arrival figures for 2016 indicated that there were 138,000,000. This represents a reduction from the 2015 figure of 162,000,000.0 Persons. 

Several arrivals data are updated yearly with a 22-year average of 81,000,000 persons. The data peaked in 2015 at 162,000 persons and fell to a record low in 1995 at 53,000 persons. The World Bank claims that CEIC still tracks foreign tourism arrivals. Overnight visitors are international incoming tourists. Their main purpose in visiting is different from an activity paid for from within the country visited.

Palau tourism statistics

The number of tourists visiting Palau from January to September grew by 23% as compared to the same period in 2021, according to the most recent figures on visitor arrivals.

Over 7,000 tourists have visited Palau since the year’s commencement.

However, the figure revealed that August and September saw fewer arrivals than the corresponding months in 2021.

According to the data, 1,289 visitors arrived in Palau in September 2022, a 28% decrease from the previous month and a rise of 11% from the previous month (Aug. 2022).

According to additional data, visitors from the United States and Canada “remain the dominant market, accounting for 58% of arrivals, followed by Others at 16% and Japan at 15%.”

The business end 

Since the turn of the millennium, Palau’s economy has been a success story, with the nation enacting historic legislation to institute a minimum wage in 1998.

Foreign employees, who make up a sizable section of the labor force and are particularly prevalent among those from the Philippines and Taiwan, are exempt from the regulation.

Major exports include tuna and apparel, and granting licenses to international fishing vessels brings in additional revenue for the government. Gathering and growing taro, sweet potatoes, and cassava are frequent tasks in rural areas.

The past few decades have seen a significant increase in tourism, which is now a significant economic contributor to Palau.

The International Monetary Fund estimates that $114.2 million in tourism receipts were made in the 2017–2018 fiscal year and that $137.7 million will be made in the 2019–2020 fiscal year. According to World Bank statistics, 123,000 tourists visited Palau in 2017.

Tommy Remengesau, the nation’s tourism minister, has backed the five-year Responsible Tourism Policy Framework. He wrote: “Tourism continues to provide for more than half of our economy, with the sector providing 51% of our GDP, in the framework paper published in 2017.