Pacific Magazine > Magazine > March 1, 2001

Tourism

Everyone's Heading To The Rock Islands

Scuba Diving Deluge A Challenge To Palau's Spectacular Environment

By Lisa Hansen

Palau’s tourism sector, the economy’s largest, has experienced remarkable growth over the past fifteen years. In 1986, visitors to Palau didn’t top 14,000. Eleven years later, visitor numbers peaked at about 73,000. For 1999 (not including December) visitors had declined 42,819, but still generated $55.5 million. Of that amount, $9.25 million dollars was collected as taxes and the balance of over $46 million went directly to the private sector.

The economic downturn in Asia affected Palau’s economy, but not to the extent that many expected. In the peak fiscal year of 1996-1997, revenues from travel services reached $61.2 million, but the following year were down only to $58 million and held steady through the next fiscal year, despite Asia’s financial problems. This decline was largely due to a downturn in arrivals from Taiwan. For fiscal 1999-2000 tourism income had rebounded to almost $64.7 million.

World class: Palau's Rock Islands lure thousands of visitors annually.

As Palau tends to be an elite tourism destination, economic downturns are not usually felt as sharply as they are by other, more accessible, destinations. The continued importance of the United States, Europe and Australia/New Zealand as markets for tourism also helped to buoy up receipts.

While Japan, the United States and Europe remain the main focus of tourism marketing for Palau, the most recent statistics show that Taiwanese tourists have become the most significant new source of revenues. In fact, total receipts for 1999 from Taiwanese travelers, at $11.9 million, exceeded spending from U.S.-origin tourists by about $100,000.

Visitors originating from South Korea are also arriving in increasing numbers, and the Palau Visitors Authority is organizing a major promotional campaign there during 2001. The Korean market has languished to a degree, partially due to the Korean Airlines crash in Guam and also because Continental discontinued flights between Guam and Seoul in 1997. The latter service was restored late last year. Comparing individual countries, Korea has already emerged as the fifth largest source of tourists and is set to expand.

Downtown Koror:Island style amid the hustle

The relatively large scale of tourism clearly benefits the economy but also affects Palau’s environment, in some cases for the better. Fees collected for using the Rock Islands and for dive permits fund the construction of tourism facilities at the sites with the best beaches and picnicking spots. This includes compost toilets that help to protect the islands and lagoons. These permits also fund the Koror State Rangers, enabling them to patrol and protect the lagoon environment from improper uses such as poaching, damaging coral or overuse of Palau’s famous jellyfish lakes. According to the Palau Conservation Society, most tour companies are conscientious about using environmental resources in a sustainable manner.

The negative affects of mass tourism can be seen in some deterioration of corals and reefs at popular dive sites. For the most frequently visited sites, such as Blue Corner, Blue Hole and German Channel, the annual dive rates significantly exceed the carrying capacities suggested for other coral reef areas. The impact, however, has been moderate to date, and generally limited to shelf areas used for holding-on. Anchor damage at popular snorkeling spots like Soft Coral Arch and Cemetery Reef is much more noticeable as the number of boats in the water proliferates.

More difficult to measure is the cultural effect of tourism. Some public figures in Palau, including new Vice President, Sandra Pierantozzi, have written publicly about Palauan discomfort with the presence of foreigners at popular picnicking spots in the Rock Islands. Tourism requires services, and businesses tend to hire guest workers that can be paid less than the minimum wage required for Palauans. Most striking is the introduction of a wide range of goods and services, including Internet cafes, organic foods and chain restaurants, all catering to locals and visitors alike. This has all had the effect of placing Palau more directly in the path of globalization.

Some Palauans decry the loss of traditional values that this implies, and Palauans from the President down are taking steps to protect indigenous culture. So far, this has only been manifested in the form of crafts and dance troupes that perform at hotels and resorts, but efforts are underway to develop eco-tourism operations in the big island of Babeldaob that will rely on traditional village sites and the fishing and handicraft skills of villagers. Tourism is clearly Palau’s future. The question is how well that future can be directed by Palauans themselves.