Does tourism benefit Palauans?

By Jaston-Kyle Jamore

The ongoing expansion of Palau’s tourism industry has highlighted a conflict between economic growth and local participation, as underscored by recent discussions among government and Chamber of Commerce representatives, and Palau Community College students.

Melson Miko, Director of the Palau Bureau of Tourism, emphasized the industry’s central role in the economy, stating, “The tourism industry is the bread and butter. Palau has no real resources other than tourism.”

According to the Asian Development Bank, tourism contributes 40 percent to Palau’s GDP. Before the COVID-19 pandemic, the nation of 18,000 attracted up to 150,000 tourists annually.

Despite tourism’s major economic impact, many Palauans face economic challenges. Interviews reveal that locals are struggling with high living costs. Students reported working part-time jobs to support their families or manage debt, while some described the financial strain as pushing them to consider leaving the country.

Miko noted that the minimum wage had remained stagnant and low for years but was soon to rise to $5 per hour. The low minimum wage is an obvious factor fueling out-migration to the United States.

Vivien Ngirarsaol Protine, president of the Palau Chamber of Commerce, asserted that “opportunity is here” and encouraged young entrepreneurs to take advantage of them. Yet local college students said they were planning to seek better prospects abroad.

PCC student Beyonce Takeo said she plans to continue her education elsewhere. “I would come back for family but not for work,” she said. Several other local students said they are also preparing to leave Palau for opportunities outside.

The pressing question is whether the current situation is favorable for local entrepreneurial ventures or whether seeking opportunities abroad will remain the most viable option for the younger generation.   

Jaston-Kyle Jamore is a graduate of the College of the Marshall Islands in Majuro.