By Maureen N. Maratita, reporting from Koror, Palau
Palau is taking every opportunity to secure flights to the country, and to promote its unique offerings to diverse tourism markets.
While Palau has been in the world news due to its geopolitical situation, it has also been lauded for taking every opportunity to protect its natural resources and promote that it is doing so, drawing eco-conscious travelers.
According to the tourism section of the Palau Development Plan 2023 to 2026, Palau’s goal is to “recover the number of value-adding tourism visitors to over 150,000 per year …”

Ngiraibelas Tmetuchl is Palau’s minister of tourism.
Ngiraibelas Tmetuchl, minister for Human Resources, Culture, Tourism and Development says, “When President Whipps was first elected [in 2021], his primary objective was to reconnect Palau to the world.”
Due to the pandemic, Palau visitor numbers dropped from 168,000 a year to zero.
Airlines that fly to Palau include United Airlines, China Airlines, Nauru Airlines and Qantas.
Cambodia Airways and Hong Kong Airlines have charter flights to the country.
When occupancy on China Airlines flights from Taiwan reached 80%, the airline increased its flights.
“We’ve been successful in bringing in four flights a week, and daily flights from United,” Tmetuchl says. “The challenge has been to re-open Japan and Korea, he says. Transiting Guam or elsewhere, for example through Manila is “inconvenient for Japanese,” he says. “They lose a day essentially, to and from.”
But plans are in development with United for the Japan market, he says. “We have been discussing direct flights. We are very close to an agreement.” Flights would begin twice weekly from early summer, Tmetuchl says. Such flights would have other benefits, as such flights will also connect United to all its hubs, he says. United had earlier announced it would begin flights from Narita in May. In addition to the United Airlines service, Japan Airlines is due to begin charter flights from Narita to Palau in March.
Currently a connection to Europe brings in travelers who have long vacations. “Germans are great tourists,” Tmetuchl says. They take advantage of a Frankfurt-Taipei connection on China Airlines. “China Airlines flies direct to a slew of cities,” he says.
Qantas added Palau to its map for the first time on Dec. 7, operating weekly flights from Brisbane to Koror on 737 aircraft.
The service, known as the “Palau Paradise Express,” operates as part of a contract awarded to Qantas by the Australian government, and will help maintain strong trade and tourism links between Australia and Palau.
The flight route was first operated by Nauru Airlines between Brisbane and Palau until Oct. 31, with flights guaranteed to continue until November 2025.
“Qantas brings in their membership … connections to all cities in Australia and the South Pacific,” Tmetuchl says. “We’re seeing a lot of Australians.” Flights have about 100 passengers, he says. “Ambassador [Richelle] Turner – she has been really in the background pushing this. We want to thank her and the Australian government. President Whipps told her to make the impossible possible.”
Tmetuchl says the North-South divide of the Pacific should be conquered. It’s his intent to sit down with regional governments and discuss the option of island-hopping. “We should make Pacific travel no different to a Euro Pass.”
He still sits on the Palau Visitors Authority Board, which he previously chaired. “What we’re doing is developing cultural tourism. We did a Palau wide assessment – in order to get Palauans involved in tourism is to let them do what they’re good at. The cultural component is still intact,” he says. Grass skirts are still made for funerals, and how those are made is shown, as are tours of Bai’s – traditional meeting houses. “The food is incorporated,” he says.
“Our ministry has been working with a lot of cultural assets,” Tmetuchl says. Two buses were donated for the Our Oceans conference, and he aims to use them to take visitors shopping and to night markets. In addition, there is potential in the cultivation of taro. “We got a huge grant from the ADB to build a processing plant,” he says, which develops taro flour.
Aside from increasing flights and cultural offerings, Tmetuchl has other aims.
“My aspirations this year are to build a nine-hole golf course. I’m looking for investors – I’ll take foreign and local.” Golf in Palau has been mooted before as an additional attraction but only came close. The minister says, “I’ve had some discussions and if we can play golf at night – even better.”
There are changes he would like to see in Micronesia’s relations.
“My pet peeve with some of the regional organizations is it’s all political.” He would like to see easier transport restrictions. “The connection is perfect for Guam for fruits, vegetables and flowers. We can have cold storage at the airport.”
The Palau Visitors Authority has seen renewed interest in visiting Palau, to include from Joint Region Mariana’s Morale, Welfare, and Recreation, which visited the country.

Ngiraibelas Tmetuchl is managing director of the Palau Visitors Authority.
Kadoi Ruluked, managing director of the Palau Visitors Authority; says, “We introduced them to the hotels … and to the Palau Chamber of Commerce.” Palau’s offerings have expanded, with 91 hotels and restaurants at various price points. Ruluked says accommodations vary. “There are motels, hotels, resorts and live aboards.” Qantas has been a plus he says, and the market is working with PVA. “We met with some tour operators and brought them here for a FAM trip.” PVA has an office in Sydney. The authority attended the Boot event in Dusseldorf in January. “PVA is returning after a long hiatus,” Ruluked says. The German market took to Palau, he says. “It was a really good market for Palau.” With China Airlines four weekly flights, Europeans come via Taipe. “They stay 14 to 21 days,” he says.
Other markets are proving more difficult to capture.
“Korea has been a challenge to bring them back,” Ruluked says. “There have been a couple of charter flights, but no commitment.”
Sporting events like the Belau Marathon are popular, and these have been promoted well in advance. Palau’s second annual cycling race is on Aug. 31. “We’re starting to work with the Cycling Federation,” Ruluked says.
Budget is a challenge, and PVA’s is “not over $2 million,” he says. “We get some grant support. We know how to maximize our budget.”
The plus, Ruluked says, is the country’s reputation. “Palau’s still a place to enjoy and visit.”
The Palau International Coral Reef Center’s aquarium is a visitor draw. “It’s designed as if you’re on a boat and moving away from shore,” Lucy Dickie, communications and outreach officer at the center; says. “We get the big tour groups coming through – that’s 100 a day if we have a cruise.”
However, she says, “The Aquarium’s main focus is outreach.” The center has three communication and outreach officers who cover standard communications. “We also have education programs … that’s constant,” she says.
The center’s research department has five main focus areas and currently is also researching mangroves. There are 42 staff, who are mostly Palauan, at the center. “We’re growing fast,” Dickie says. “It gives a lot of locals opportunities to develop research skills.” Staff are also from around the world – the U.K., Italy, Portugal, Columbia and Australia. “PICRIC has very strong relations with other research institutions,” Dickie says. “There’s some standard long-term projects.” These include studies of coral and fish stock. “If there’s signs of coral bleaching, they’ll do a coral bleaching study,” she says.
The State of Koror is responsible for Palau’s famous Jellyfish Lake, which barely has jellyfish now, potentially an example of climate change.
Gov. Eyos Rudimch says, “We’re hoping for some kind of miracle.” What is missing is guidance, he says. “We need some outside expertise to help us.”
The Coral Reef Research Foundation tests the temperature and salinity of the water in the lake, producing quarterly reports.
The millions of golden jellyfish found in Jellyfish Lake are a unique subspecies. The jellyfish disappeared in 1999 and in 2015 and 2016. “They bounced back for a year and a half,” says Jennifer S. Olegeriil, director of the Department of Conservation and Law Enforcement. “We’re optimistic, but it’s taking a bit longer.”
The temperature in the lake fluctuates, she says. “The major factor is the water temperature; you can feel it.” Other issues are the salinity of the lake and a lack of nutrients. The foundation has been the state’s primary partner in the Rock Islands for more than 15 years, Olegeriil says. The state has received a Great Barrier Reef Program grant. “One of the primary aims of that grant is to connect us with experts. Mother Nature is playing havoc with Jellyfish Lake.” Some Golden and Moon Jellyfish have been seen in the lake, up to the hundreds, she says. But they don’t necessarily survive.” The lake, she says “is iconic to the Rock Islands.”
On the bright side, more accommodation will open in Palau.
The Palau Sunrise Landison Retreat opened doors in July. The property was a $25 million investment of a sole proprietor, with 58 rooms, 16 private villas, a Balinese spa, an outdoor pool with a view of the Pacific Ocean and other amenities.
IHG Hotel Ltd., which does business as the Hotel Indigo Palau, is investing more than $100 million in the construction of a 187-room hotel, after signing a management agreement with Palau Coral Club. Palau Coral Club’s largest shareholder is Takao Yasuda, founder of Pan Pacific International Holdings Ltd., which has its headquarters in Japan. The company was formerly known as Don Quijote Holdings Co. Ltd. and changed its name to Pan Pacific International Holdings Corp. in February 2019. Units for workers are currently empty, and fully prefabricated accommodation units were damaged in transit, according to sources.
The Wanjin Palau Development Co., which does business as the Marriott Hotel, is anticipated to start construction this summer on a 120-room and 20-bungalow hotel. The company is investing about $30 million in the six-story building. Palau Majesty Development, which does business as the Sheraton, has its licensed approved by Palau’s Foreign Investment Board. The company’s approximately $200 million investment on its 154-room hotel is expected to start this summer.
The Leisure Development Koror Inc., which does business as the Four Seasons, was initially stalled by a property dispute.

Armando Kraenzlin and Dilreng Dee-light Patrick of Four Seasons.
The Four Seasons has been working with the government to train Palauans interested in the hotel industry. Upon opening in Palau last year, the liveaboard highlighted three young Palauans who participated in the Four Seasons Maldives Hospitality Apprenticeship. They graduated from the multi-faceted, year-long program in June 2023, and began careers with the Four Seasons Explorer: Dilreng Dee-light Patrick and Kaali Mae as guest services agents, and Joyce L. Kyota as a commis chef.
The apprenticeship program has continued with a SCUBA certification course that will take interested high school juniors and seniors from basic certification through to masters, which will allow them to guide tours.
In October 2023, the Four Seasons Explorer, the 10-cabin, 22-guest luxury catamaran, made Palau its homebase. Armando Kraenzlin, regional vice president and general manager of Four Seasons is based in the Maldives and comes to Palau twice yearly. “We have 25 people on the boat,” he says. “Our main markets are the U.S., Europe and the regional market.”
Lengths on the live-aboard vary. “We recommend a week, but people can check in and check out of the boat whenever they want,” he says. Four Seasons also organizes excursion tours. “People come a long way to come here,” Kraenzlin says. Not seeing what the country offers is a missed opportunity, he says.
The Four Seasons has a defined market in Europe. “We’ve received good feedback from the German market,” he says. Palau typically has a large presence at the Boot watersports show in Dusseldorf and was there in January.
The partnership between Palau and Four Seasons for training is continuing. “What we are offering here is an offshoot of what we offer in the Maldives,” Kraenzlin says. In Palau, this is the second year. We offer four courses of one year each.” These offer training as chefs, dive masters, boat captains and recreation. “The Maldives really understood 30 years ago that they have great potential to service customers,” he says, with 65% to 70% of the Maldives economy relying on tourism.
While there are other liveaboards in Palau and small-scale cruises such as National Geographic – a frequent visitor – Kraenzlin says the Palau market is defined. “There is tourism here, but it’s a mid-market level.”
Four Seasons clients can be demanding, he says. “It’s truly eye-opening for young Palauans to see.”
Palau’s offerings are unique, Kraenzlin says. “It’s the natural beauty of the destination, with almost a mysterious element to it. It’s not only about the diving; it’s about making those connections into the community.”
As to the corporation’s place in the scheme of things, he says, “We feel welcome here. It’s a nice exchange – a mutually beneficial collaboration.”
Four Seasons also plans a resort in Palau.
Palau offers a variety of established and newer hotels. The Palasia Hotel Palau opened in 1998 in the center of Koror and is partly owned by the Seid family.

Doris Chin, president of Palasia Hotel Palau.
President Doris Chin began her career in Taipei in a different industry but joined the Palasia team 15 years ago. “At the beginning they needed a financial controller,” she says.
Prior to COVID, occupancy was more than 90% and dropped to 1% to 2% during the COVID period. Occupancy varies and can be as low as 30% or 40%, but during high seasons, and with tourist visitors and VIPs for the January inauguration, the 165-room hotel was full.
With tourist visitors, “The majority of them are divers,” Chin says. While Palasia has seen Australian tourists, “The majority is from Asia,” she says, although Palasia also draws Americans and Europeans.
During the pandemic, the Palasia invested and renovated. “We changed the AC, the carpets, all the TVs,” Chin says. In March all curtains will be replaced, followed by upgrading all the showers. “It’s step by step,” she says. Palasia has already added a swimming pool and upgraded flooring among its renovations. Chin says the upgrades are costing Palasia “many millions.”
She says the hotel has recently retained “less than 100” staff. “Many of the employees go to the U.S.” One challenge is the inflated cost of goods. Offering a generous breakfast buffet, Palasia is counting the cost of inflation, to include eggs, which have risen from $3 to $4 a carton to $6 to $7, and occasionally $10.
Plus, “Nowadays, the traveler economics are very different,” she says. “Some people save money for their diving needs; they don’t care to spend money on accommodation.” Palasia benefits from its location for tourists, she says. “They can reach everywhere. It’s in the center of town.”

Jeffrey T. Barabe of Palau Central Hotel and Elilai Restaurant and Bar.
The Palau Central Hotel re-opened in 2018 after a $7 million full renovation. “It was a labor of love,” says Jeffrey T. Barabe, co-owner. The property opposite the Palasia offers 52 rooms. “We’re planning an expansion,” he says, which will add one more floor and 18 rooms. Occupancy fluctuates, he says. “It varies dramatically. The average for the year is probably the high 60s.”
Barabe also owns the Elilai Restaurant & Bar, regarded as one of Palau’s best eateries.
During the pandemic, he says, “We had to change our business model. There were no hotel guests.” The restaurant adapted by lowering prices. “Every month we had a theme night. People loved it.”
The Palau Carolines Resort – also a Barabe business – stayed open. “We had staycations a little bit,” he says. Due to funds from the U.S., people had income. “Being unemployed, they were getting a lot more money,” he says. “There was an economic boom during COVID.”
Barabe says cars sold, and there was a lot of helpful trickle-down money.
“The problem with our recovery is it’s not a coordinated effort,” he says. “We’re starting to see some traction. … We only need 110,000 to 150,000 [tourists] per year.” Barabe is developing ideas for the future. “We’re planning a World War II tour.”
Additionally, he has grown new business sources. “We’ve expanded into catering for the military and inflight meals for Air Nauru.” The Carolines Resort is also being converted, offering glamping tents. “We’ve got three up. It’s something fun, new and interesting.”
Economically, he says the new tax legislation has “had an impact on the economy for sure. If it’s not good for our customers, it’s not good for our business. If you want to work with local businesses, it’s a negative.” Barabas says he understands that the Asian Development Bank required tax reform as a condition of its loan to Palau. “It was required to have tax reform. It was not required to have PGST. The winner is the government by far.”
The Landmark Marina with 22 rooms is one of Palau’s smaller hotels but benefits from its own dock and easy access to the Rock Islands, providing tour guides and diving expeditions, and typically breakfast.
Purchased by William Tsung 15 years ago, the hotel has 10 staff, mostly from the Philippines, but including a Nepalese and Bangladeshi. When the magazine visited, the hotel had five rooms occupied. Guests ae mostly Taiwanese.

Dermot Keane, managing director of Sam’s Tours.
Sam’s Tours offers a full range of tours, including diving, snorkeling, Rock Island Tours and more. Dermot Keane, managing director; says, “We’re perceived to be the largest – meaning the most customers.” Some 80% of Palau divers come from Asia, now including those from the People’s Republic of China – Palau’s largest market with 25% of visitors. Tours cannot be booked in China, but the country’s citizens can book elsewhere and are allowed to visit Palau.
Keane says 20% of divers come from everywhere else. “That’s our market.” Sam’s Tours sees visitors from North America, Europe and Australia, with its largest numbers in that order. “We were getting some traction and traffic out of Singapore and Thailand – wealthy young Asians.
Accessibility to Palau is a challenge, he says. “The conduit now from Frankfurt to Taipei to Koror is 21 hours.” United flies to Taipei from several U.S. mainland cities.
“It’s all about the flights,” Keane says. “It has to be the right carrier.” China Airlines flies the Frankfurt-Taipei-Koror route. He says, “You can check your bag in Frankfurt and pick it up in Koror.”
While tourism numbers are lower than pre-COVID, Keane says other issues existed. “The challenge we had before COVID was the quality of the product.”
Additionally, he says, “There’s a feast and famine cycle in tourism. We try to smooth it out year-round.”
The low season for diving in Palau is roughly June through September, when its rainy and windy. “For divers a lot of it is weather,” Keane says.
Pre-COVID, Sam’s had 88 staff and 120 to 150 divers a day.” Really, he says, “We had the capacity to deal with 36 – that’s our target.” Less than 20% of business is “walk-ins,” he says.
European traffic to Sam’s is driven from that continent. “We have staff in Italy; we have an office in Munich. We have a full group over there.”
Other factors that affect business are financial, he says. “The cost of living has gone up.”
Sams does get groups of snorkelers and hosts Rock Island Tours. “But the bulk of our business is diving,” Keane says.
The business works with industry key stakeholders.
Tourists vary, he says. “There’s an element in the market that would be happy to sit on the beach.” We need to diversify the product that improves our capacity. As a destination we can do better – the same aspirations we’ve had in the past – to train the local market.”
Sam’s started a diving camp, Keane says. “Those people who are interested are stepping into the industry side.”
The positive factor he says is, “Palau does a really good job of opening up educational opportunities for kids. There is a young upcoming core of people who’ve been given an opportunity. That inspires others.”