The Economy of Palau

Palau’s economy is dominated by tourism, subsistence agriculture,

and fishing. Palau’s per capita income (purchasing power parity) is

nearly USD 14,000 per year. Palau’s economy contracted in 2008 and

2009 due to the global economic crisis, and it affected the incoming

tourist number and foreign investment. The number of tourist visitors

rebounded in 2010, and 2014 saw a new record for tourist arrivals.

The Foreign Investment Act provides the approval-process guidance

for foreign investment, and the Foreign Investment Regulations reserves

some businesses to Palauan citizens, including wholesale or retail sale

of goods, all land and water transportation, travel and tour agencies, and

commercial fishing. Some sectors are semi-restricted, requiring a Palauan

partner, though no fixed percent of ownership is required.