Palau Tests the Waters of Luxury Tourism
Skift Take
The tiny republic of Palau is striving to become a global leader in ecotourism. In recent years, the government has made moves to ensure the country becomes a pristine paradise for luxury travelers.
Palau may be tiny (population 21,500ish), but the Micronesian republic, made up of hundreds of islands, is looking to punch above its weight when it comes to attracting luxury tourism development.
Following the leads of Botswana and Bhutan, the government has decided to focus attracting high-end, low-impact tourism. This is best exemplified by the recent signing of a law that limits foreigners to investing in luxury tourism projects that come complete with their own infrastructure.
At the same time, the bill provides international investors with tax breaks and exemptions. In a parallel development aimed at keeping Palau pristine, incoming tourists must now sign a Palau Pledge upon arrival, agreeing to respect the environment.
Due to a boom of Chinese package tourism to Palau during the past decade, there have been growing concerns about the impact of low-spend, mass tourism on the country’s environment, particula
