Overview:
Palau’s tourism industry closed 2025 on solid footing and kicked off 2026 with a 13% jump in January arrivals. While China remains the top source market, sharp growth from Japan and Australia is reshaping the visitor mix. What’s driving the shift — and what does it mean for Palau’s tourism future?
By: L.N. Reklai
KOROR, Palau — The Palau Visitors Authority reported that Palau closed 2025 with solid tourism gains and opened 2026 on an upward trend, welcoming 7,810 visitors in January — a 13% increase from the 6,902 recorded in January 2025.
The January figure also marked a 4.3% rise from December 2025’s total of 7,486, signaling steady travel momentum at the start of the new year.
For full-year 2025, Palau’s visitor industry showed continued recovery and diversification across its key source markets, with Asia and North America driving much of the growth. China remained the largest contributor overall in 2025, supported by strong charter services, while Japan, Taiwan and the United States/Canada markets also played significant roles in rebuilding arrival numbers.
In January 2026, China continued to lead all markets with 2,381 arrivals, accounting for 30% of total visitors. Japan followed with 1,296 arrivals, representing 17% of the market share. The United States/Canada and Taiwan each recorded 1,147 visitors, capturing 15% apiece.
Europe contributed 608 visitors, or 8%, while Australia accounted for 471 arrivals, or 6%. South Korea and other markets rounded out the total.
Year over year, Australia posted the highest percentage growth in January, surging 149% compared to the same period last year. Japan followed with a 101% increase, while South Korea grew 84% and Europe rose 39%. The United States/Canada market climbed 15%.
Despite leading in total volume, China recorded a 15% decline in January compared with January 2025 — a drop of 422 visitors — marking the largest numerical decrease among the major markets. Taiwan also saw a 9% decline year over year.
Tourism officials noted that strong gains from Japan, Australia and North America helped offset softness in parts of Asia, reflecting broader diversification in Palau’s visitor base.
Air connectivity remained a key factor behind the performance. United Airlines continued operating 10 scheduled weekly flights to Koror, including six from Guam, two from Manila and two direct flights from Tokyo’s Narita International Airport introduced in late October 2025. The Japan market benefited significantly from this added lift.
China Airlines increased its Taiwan service to four weekly flights, while Qantas maintained weekly service from Brisbane, helping drive Australia’s triple-digit growth.
Charter operators — including Hong Kong Airlines, Cambodia Airways and Greater Bay Airlines — continued concentrating heavily on the China market.
Entry data showed that 76% of January 2026 visitors were first-time travelers to Palau, while 24% were repeat guests. Leisure travel dominated at 92.4% of arrivals, with military-related travel accounting for 4.5% and visits to friends and relatives making up 3.1%.
Hotels remained the top accommodation choice at 58.2%, followed by resorts at 33.2%, underscoring steady demand across both mid-range and higher-end properties.
Tourism officials said the focus remains on balanced and sustainable growth rather than sheer volume, aligning with Palau’s long-term “Pristine Paradise” vision that emphasizes environmental protection and community benefit.
With diversified air access, expanding outreach in Japan and Australia, and continued engagement in North America, Palau’s tourism sector appears positioned for steady performance heading deeper into 2026.