here you will see how what is the situation of palau on tourism sector you will find out economic development and how does it sustain

1. PALAU ISLAND
The environment is our economy and the economy is our environment
– Tommy E.Remengesau, Jr – President of the Republic of Palau
Contents : 1. Ever heard about Palau Island?
2. The 3 dimensions of sustainability.
3. Conclusion with critical analysis.
4. Recommendations / suggestions.
Group B : Suyash Sakurdeep
Elizabeth Ileriowula
Jivan Parajuli
Savish Rajjoo

2. Introduction
Palau, officially the Republic of Palau, is an island
nation. It is in the Pacific Ocean.
- Palau is 300 miles (500 km) east of the
Philippines. It got independence from United
Nations trusteeship administration (administered
by the United States of America) in 1994.
- It is one of the world's youngest and smallest
nations. It is sometimes referred to in English
under its native name Belau. The capital city of
Palau is Melekeok.
2Suyash Sakurdeep

3. - The country was originally settled approximately
3,000 years ago by migrants from Insular
Southeast Asia, Spain was the first European
nation to explore the islands in the 16th century.
- Politically, Palau is a presidential republic in free
association with the United States, which provides
defense, funding, and access to social services.
3Suyash Sakurdeep

4. - Palau's economy is based mainly on tourism, subsistence
agriculture and fishing, with a significant portion of gross
national product (GNP) derived from foreign aid. The
country uses the United States dollar as its currency.
- The islands' culture mixes Micronesian, Melanesian,
Asian, and Western elements. Ethnic Palauans, the
majority of the population, are of mixed Micronesian,
Melanesian, and Austronesian descent.
- A smaller proportion of the population is of Japanese
descent. The country's two official languages are Palauan
and English, with Japanese, Sonsorolese, and Tobian
recognized as regional languages.
4Suyash Sakurdeep

5. The 3 dimensions of
sustainability
- Economic sustainability refers to the practices that support long-term
economic growth without negatively impacting on the social, environmental
and cultural aspects of the community. In other words, we must conserve
finite natural resources today so that the future generations can cater to
their needs.
- Palauans have adopted an economic development strategy that is centered
on Tourism to these exceptional marine sites, a plan that they have termed
‘Pristine paradise Palau”.
- However, between 2014 to 2015 the amount of tourists from China
increased from 21,706 to 91,174 ; the number of tourists has increased by
70% primarily from Asia.
- “ Our environment is our economy ; economy is our environment – Thomas
Remengesau Jr.
- Tourists coming to the island are encouraged to share the same values.
5Elizabeth Illeriowula

6. - Tourism is the leading economy driver in Palau, and sustaining this
source of Tourism industry has been active in voicing their concerns
to help the economy.
- Between 1995 to 2015, unemployment rate decreased from 7.0% to
1.7%.
- In terms of education provided, there was a total of 3,052
enrollments in both public and private schools.
6Elizabeth Illeriowula

7. Environmental
sustainability
- The environment forms the basis of Palau’s culture and economy, with much
of the population reliant on natural resources ; tourism has been the largest
income provider to the active labor force.
- The environment is so important to its livelihoods, culture, economy and
global biodiversity.
- Palau is the first nation on Earth to include environmental protection in its
immigration laws and many of the rules refer directly to the Archipelago’s
unique wildlife ; Don’s collect marine life from beaches ‘ don’t walk on corals
and do not feed the fishes .
- The pledge also features clear social guidelines ; supports local businesses
; learn about the local culture and respect traditional customs.
- The Palau pledge has been written by the children of Palau and not by the
government or conservation organizations which demonstrates the close
relationship between the wildlife and the community.
7Elizabeth Illeriowula

8. Social sustainability
- The country maintained proper management of business impacts on
employees, workers in the value chain, customers and local
communities. The future generations’ well being is also supported
to maintain a healthy community.
- People’s lives have improved : Jobs have been created, goods and
services are provided to help meet their basic needs and more
inclusive value chains.
- Social sustainability is being sustained by making strategic social
investments and promoting public policies.
8Elizabeth Illeriowula

9. Policy making
- Foreign investment laws : The ownership of a foreign business in Palau is regulated by
the Foreign Investment Board, an executive agency that considers the economic
benefit of proposed foreign businesses, In order to be permitted, a foreign business
must invest at least $10,000. If approved, the Board typically gives permits of up to 50
years for the operation of foreign businesses. While this time period is sufficient to
encourage the investment of capital in most instances, it is likely that large scale
developers are wary of this limitation, and choose not to invest for this reason.
- Labor Laws and Regulations – Palau’s labor laws require that companies hire Palauan
citizens when possible, and to pay fees for any non-resident worker that they do hire.
This requirement aims to promote employment among Palauans.
- Shipping and Travel Costs – Palau’s isolation and distance make shipping and travel
very expensive as well as time - consuming.
- Land Ownership – Land ownership issues are for foreign investment. only Palauans
can own property in Palau. Foreign investors are allowed to lease land for a maximum
of 50 year terms.
9Jivan Parajuli

10. - Palau is a small island nation with limited capacity to allocate significant
financial resources to pertinent issues pertaining to pollution control, human
resource management, population control, environmental preservation and
protection, waste management, infrastructure development, education, and
community health management.
- In attempt to gain additional support for sustainable development
initiatives, Palau is a Party to various international conventions and
agreements that have implicit linkages to the environment and human
health. However, the requirements of convention Party status coupled with
internal environment and economic issues place added stress on already
limited resources (including human and financial).
- The Republic spends considerable resources recruiting, housing and
employing expatriates to fill gaps in higher-paying senior and professional
positions available in Palau. In addition, most technical positions are also
filled by labor imported from overseas. Capacity building efforts are currently
limited to those associated with external funding however each sector has
identified limited qualified local human resources as a key constraint.
10Jivan Parajuli

11. The way of operating a
system
Coordination among stakeholders in Palau is
critical in achieving sustainable development
goals. Due to limited resources and strong
community links, Palauans generally coordinate
informally. In addition, there are many various
committees, task forces and working groups
established through programming in each sector
that provide greater opportunity to coordinate
among agencies and individuals.
11Jivan Parajuli

12. Critical analysis
- January 2003 : Economic valuation survey hosted by the office of
Environmental Response and coordination with World Bank technical
assistance.
- This saw a perpetual increase in the amount of visitors until financial year
2016.
- Drought in Palau which started in March 2016 ; declining population in
the iconic Jellyfish Lake ; tourists’ expansion has placed strain on the
carrying capacity of Palau’s pristine natural sites and is threatening to
overwhelm its infrastructure.
- The government said Palau do not want to cater to mass tourism and
see the declining arrivals as a sign that it is attracting more
independent, high spending travelers.
- The Palau pledge : To ensure that its incredible pristine paradise is
protected for generations to come.
- Mission ? HIGH QUALITY BUT LOW IMPACT TOURISM.
12Savish Rajjoo

13. - The Earth is a watery place – 71% of water and 29% of land while
the oceans hold about 96.5% of all Earth’s water.
- Our Ocean Conference 2020 : Identify solutions to manage marine
resources, increase the ocean’s resilience to climate change and
safeguard its health for generations to come.
- Success in the Tourism sector should be redefined : Shift away
from the Linear model whereby MORE TOURISTS=MORE
PROFIT.
- Budget 2018-2019 : Authorization ( $2,092,000) ; Appropriation ( $
1,711,000) for Ministry of Natural resources, Environment and
Tourism. What are the takeaways from this?
13Savish Rajjoo

14. - Ability to see the bigger picture : LESS PROFIT in the short term
going through a process of educating their visitors in order to
achieve sustainability in the long run ; enabling the tourists to be
part of the solution, and join them in maintaining their pristine
paradise, Palau for generations to come.
- Amendments in several acts : Formulation of a bill.
- Entry by vessels and aircrafts ; environmental message.
- Reusable water and meal containers have to be provided by tour
operators.
- No reef-toxic sun cream shall be manufactured or imported for sale
in Palau ; Palau considered as the top underwater attraction in the
world.
14Savish Rajjoo

15. Conclusion
Aim of the government : Promote and encourage
the development of a visitor industry in Palau as
one of the two lead sectors to support economic
growth while maintaining the pristine marine and
land environments and ecosystems.
Remengesau, the President of Palau received the
United Nations’ champion of the Earth title, the
inspiring conservation award.
15Savish Rajjoo

16. Recommendations /
suggestions
1. Website :
- https://www.palaugov.pw
- https://www.palaugov.pw/documents/rppl-no-10-29-fiscal-year-2019-
annual-budget-act/
- https://www.rnz.co.nz/internatonal/pacific-news/398050/palau-tourism-
industry-in-crisis-report
2. Additional readings :
- System of Environmental-Economic Accounting
- 2004 Palau Tourism survey
- 2003 Population and Environment Survey
- Economics : Visitor arrivals, Balance of payment statistics Final
- Socio-Demography : Education, Crime
- Wikipedia : Thomas Remengesau Jr.
3. YouTube videos :
- Palau Island, Quartz News
- Palau : The vanishing Nation – UPROXX Reports
16Savish Rajjoo