How has tourism contributed to Palau’s economy?

Tourism in Palau has experienced significant growth since the late 20th century, serving as a contributing factor to the republic’s economic growth.1

Beyond its direct economic impact, tourism has influenced local cultural practices. Traditional art forms, such as storyboards that were once used to decorate men’s clubhouses, are now produced for sale to visitors. While the government remains the primary employer in Palau, the tourism sector represents a notable shift in the country's economic landscape.21