Palau to become luxury-only destination

Pacific island plans new law only permitting five-star hotels

Palau will only allow five-star hotel developments in future
Palau will only allow five-star hotel developments in future

Palau is planning to reposition its tourism industry by getting rid of the riff-raff and only welcoming luxury visitors.

Radio New Zealand reported the country’s President, Tommy Remengesau, as saying that he wants to increase tourism revenues whilst reducing arrivals.

He plans to achieve this by implementing a new law that would  only allow five-star hotel developments, and offering tax breaks for high-end investors. This will also help modernise infrastructure on the island, the president explained.

“If there are any other infrastructures that they have to do, like opening a road, the investor would do that themselves. In return for that we will give them the necessary tax break,” Remengesau was quoted saying.

The move follows concerns that rising tourist numbers – mainly package tours from mainland China – are damaging Palau’s environment.

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