By Elilai Rengiil
Public criticism of foreigners using Palauans as “fronts” for tourism-related businesses persist despite statements from Bureau of Tourism Director Melson Miko that Palau law reserves tourism operations to Palauans only.
Key issues related to tourism were highlighted in a press conference organized for the “Telling Your Pacific Story” Media Workshop held at Palau Community College (PCC) last Tuesday.
Palau Visitors Authority (PVA) Managing Director Kadoi Ruluked, Palau Chamber of Commerce President Vivien Ngirarsaol Protine, and Tourism Director Miko were on the panel as journalists and public information officers asked about the tourism industry and its effects on small businesses and citizens.
“Can you explain to me why this high-end tourism is better than the mass tourism from China?” asked media workshop participant Spis Gordon. “Because in my mind, the high-end tourists only benefit maybe the top 2 percent of Palauans, the rich Palauans.”
Gordon expressed experiences with friends and family having to sell their boats following the decline in mass tourism. “I know a bunch of them are in debt,” stated Gordon.
Director Ruluked responded by stating that the difference between mass tourism and high-value tourism is the latter brings more money into the local economy while also protecting the environment.
High-value tourists spend their money within the local communities during their visit, “which is why we are working with State governments to create cultural, historical, and experiential tours,” stressed Director Ruluked.
PCC President Dr. Patrick Tellei commented on Gordon’s question and the panel’s response, stating, “Seven times you (the panel) said, tourism businesses are reserved for locals. That is not the case, that’s why people have to sell their boats. They’re seeing the opposite of what you’re saying.”
Director Miko stated earlier in the press conference that under the Foreign Investment Act, tourism-related businesses can only be owned by Palauans and cannot be owned or partly owned by a foreigner.
PCC students chimed in on the issue “Foreigners own majority of the businesses, Palauans front them,” said community public health student Beyonce Takeo.
“We know outsiders cannot own businesses, Palauans get their share on the side and they (foreigners) get more,” said a PCC staff member. “They use Palauans as fronts and the money goes outside of Palau.”
The tourism panel highlighted that there are many opportunities within the tourism industry for Palauans, particularly young people.
“Everything you see in Palau is tourism-related businesses,” said Director Miko. “From hotels to stores and boat operators. Palauan people can own and do operations and can be their own operator.”
Adora Ililau, a community public health student at PCC, said she has no interest in the tourism industry and plans to leave Palau to continue her education.
“The only thing that can really get you by is if you have a diploma, like a bachelor’s,” said Ililau.
Elilai Rengiil is a reporter for Tia Belau, a newspaper published twice-weekly in Koror.